Study On The Influencing Factors Of International Competitiveness Of Chinese Tea Industry From The Perspective Of The Diamond Model

Largely based on the international trade theories and Porter’industrial theory on international competitiveness, the paper describes the present situation and influencing factors of international competitiveness of Chinese tea industry. It analyses the influencing degree of each influencing factor by grey relational analysis and proposes the countermeasures and suggestions for further promoting the international competitiveness of Chinese tea industry.Firstly, through the overview of the research background and summary of domestic and foreign literatures, the paper proposes the research issues and the main research contents. It describes the current situation in tea production and tea trade in China and in the world as a whole. From the perspective of tea production, the areas harvested and the outputs in China and in the world as a whole show the upward trend. From the perspective of tea trade, tea export value and volume in China and in the world as a whole also show the upward tendency. By analyzing the development of tea production and tea trade in China and in the world as a whole, the paper provides an industrial development background for the following analysis.Secondly, the paper evaluates the international competitiveness of tea industry from the perspectives of performance, which is demonstrated by RCA and TC, and strengths, which is demonstrated by price competitiveness and quality competitiveness. By comparing the international competitiveness of tea industry between China and other tea producing countries, the paper concludes that the international competitiveness of Chinese tea industry is relatively strong, but compared with some of the major tea producing countries, for example Kenya and Sri Lanka, Chinese tea industry needs to improve its competitive advantage. This finding provides rationales for the following empirical analysis.Thirdly, mainly based on Porter’s theory on“the Diamond Model”, the paper analyzes the factors affecting the international competitiveness of Chinese tea industry from six perspectives including the factor condition, the market demand condition and the government. It uses the grey relational analysis to do the empirical analysis on each influencing factor and studies their influencing degree. The paper reaches the conclusion that GDP per capita, yearly sales volume of tea drink, yearly sales revenue of the fine-processing tea industries, the yield of tea and agriculture investment by Chinese government has significant positive relevancy with the international competitiveness of Chinese tea industry.In the last place, based on the above empirical analysis, the paper proposes countermeasures and suggestions to improve the international competitiveness of Chinese tea industry. These include the development of the economy to further expand the tea market demand, the development of tea drink segment and promotion of intensively processed tea products, the enlargement of the tea businesses and giving full play to the leading role of the key tea businesses, the creation and productivity improvement of the essential factors, and the increase of the finance support from the government to promote further development of tea industry. The paper expects that the conclusions drawn will contribute to the improvement of the international competitiveness and the promotion of the healthy development of Chinese tea industry.