Foreign Direct Investment Research Of Chinese Textile Industry Basing On TPP Perspective

With domestic and international economic situation undergoing profound changes, foreign direct investment (FDI) in China’s textile industry is one of the important ways to achieve self-transformation, upgrading and sustainable development by rational use of two kinds of markets and resources. As early as 2010, especially after the United States and Vietnam’s accession to "Trans-Pacific Partnership Agreement (hereinafter referred to as:TPP)", in order to respond to the possible impact from TPP, China’s textile enterprises began to invest and build factories in Vietnam, Malaysia, the United States and other TPP member countries in the region, which can be regarded as our micro-economic entities’ spontaneous adjustments to TPP.As an important economic and trade cooperation agreement in the world, TPP brought not only tariff reductions and trade facilitation within the region, but also set strict rules of origin and provisions of social responsibility and investment access in textiles and clothing sector. Therefore, how to guide China’s textile enterprises to actively respond to the impact of TPP, to implement effective FDI strategy in TPP countries, and constantly to explore new space for development, to enhance international competitiveness and to achieve sustainable development, has a clear strategic significance and wealth of reality, which should be given an in-depth study.Based on TPP, aiming at the Chinese textile industry, the paper’s study is on FDI of the industry. Firstly, to TPP, paper focuses on the similarities and differences between TPP and WTO, textile articles in TPP and textile-related trade barriers and investment rules within TPP region. TPP’s impact on China’s textiles trade and textile industry chain, and TPP’s effects in the textile industry’s FDI has been described. Based on large amounts of data and business practice, paper analyzes current situation of textile Industry FDI by qualitative analysis method, including investment motives and typical case analysis. Positive and negative influence from FDI of China’s textile industry has also been described; the paper pointed out the main problem of FDI for China textile industry at this stage - the pursuit of short-term benefits and ignoring the core values increasing. Meanwhile, the paper pointed out main problems of textile enterprises to invest in TPP member countries - both investment area and field are too concentrated. Finally, through SWOT analysis in textile enterprises in TPP’s FDI, paper put forward suggestions to textile enterprises FDI under TPP, including the expansion of investment areas and regions, enhancing FDI venture aversion ability, level of international operations, itself strength and the like.Thesis concludes:our enterprises can take advantage of the opportunity brought by TPP to expand investment in the United States, Japan and other developed countries, with high international economic rules and standards, to enhance the level of international operations and to achieve the advancement of China textile industry by going to the high-end of global value chain.