The Strategic Vision Of Cooperation In Textile And Garment Industry Among China, Japan And South Korea

In the recent decades, with the economic development, the economic ties among countries in the world are becoming closer and closer. Economic globalization and regional integration what is mainly trade and investment liberalization has become an important trend of the international economic development and caused the growing concern around the world. In this wave, China should speed up its own pace and strengthen cooperation with its neighboring countries actively. Textile and garment industry is an important industry in China, while Japan and South Korea are countries that are good at textile of Asia, so researching the cooperation of the textile and garment industry among them is very important.In this paper, firstly by calculating the trade combination index, trade specialization coefficient and intra-industry trade index among textile and garment industry of China, Japan and South Korea, it is proved that the complementary and mutual dependence of the three countries is strong, which constitute a necessary condition for cooperation. Secondly, by using the ideas and methods of cooperative game, I analyze the conditions in which the textile and garment industry of China, Japan and South Korea can establish a customs union, and calculate the optimal external tariff level when these conditions are met, and then get the program of benefit distribution by adopting the method of valuation (Shapley value). Third, through the use of partial equilibrium analysis, I calculate trade creation effect of trade liberalization, and at the same time calculate the tariff loss that represents the welfare losses after the establishment of the customs union. By comparing them it can be seen: trade creation effect is more than tariff loss in China, Japan and South Korea, so a customs union of the three countries will promote welfare. China gets the biggest benefit, and then if we want Japan and South Korea to agree the customs union program, China needs to sacrifice some interests or afford more cost. Finally, I look ahead the cooperation of textile and garment industry of the three countries. Although the cooperation is in line with the requirements of national interests of the three countries, but establishing a customs union will also be a long and tortuous process. China should improve the initiative and actively negotiate with Japan and South Korea to develop all.