Analysis on Problems of Textile and Garment Trade between China and ASEAN

Abstract

With the current annual increase and rapid growth rate of trade scale, the mutual development of textile and garment trade between China and ASEAN has shown optimistic perspective. Since the establishment of CAFTA in 2010, bilateral trade between two sides has gained integrated development, towards institutionalization and maturity. This article aims at the analysis on problems existed between China and ASEAN. 1. Current situation of textile and garment trade Through years of development and completion, CAFTA was finally activated in 2010, which revealed a whole new page to the substantial interaction and communication of trading activity between China and ASEAN. 1.1 The bilateral trade volume of textile and garment trade Through the promotion of CAFTA, the environment between China and ASEAN has made tremendous improvement over the past years, with rapid development of bilateral trading activity and bilateral trading companion. Particularly in textile and garment trade, the trading activity has developed enduringly. Based on the data of UN Conference on Trade and Development volume of textile and garment trade between China and ASEAN has multiplied during the year of 2002 to 2011. In 2002, the bilateral trade volume was 2.578 billion dollar, whereas the number has turned into 5.923 billion dollar in 2006. Because of the impact by international financial crisis, there was a slight decline in bilateral trade volume in 2009, after that it has been rapidly bounced, reaching to 14.499 billion dollar in 2011, which has multiplied compared with 2006. Correspondently, the position for ASEAN in Chinese textile and garment market has achieved further progress. In 2006, ASEAN surpassed South Korea and Australia to rank as the fifth exporting market of Chinese textile and garment industry, sooner it has become the fourth in 2011. Chart.1. Chinese import and export trade volume to ASEAN from 2002 to 2011 (unit: billion dollar) Year 2002 2003 2004 2005 2006 2007 2008 2009 201