The Weave of Challenges: China's Apparel Export Competitiveness in the Face of Zero-COVID Policy

Sudipta Das (), Md Rokibul Hasan () and Debanjan Das ()
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Sudipta Das: WV University
Md Rokibul Hasan: WV University
Debanjan Das: WV University

International Journal of Global Business and Competitiveness, 2024, vol. 19, issue 1, No 4, 37-48

Abstract: Abstract The Chinese textile and apparel industry has been a global frontrunner for the past 2 decades, yet recent challenges have emerged. Issues such as escalated labor and production costs, trade conflicts, and intensified competition from neighboring Asian countries have posed significant hurdles. Moreover, the COVID-19 pandemic has deepened pressure on China's apparel exports. The government's implementation of the Zero-COVID policy aimed at decreasing the pandemic led to reduced production, factory closures, and supply chain disruptions, negatively impacting the industry's reputation with Western buyers and consequently influencing the export competitiveness of Chinese apparel. Therefore, this study focuses on assessing the export competitiveness of Chinese apparel exports, analyzing two and four-digit product categories under Harmonized System (HS) codes 61 and 62. To achieve this, the study employed evaluation tools such as Compound Annual Growth Rate (CAGR), Market Share (MS), Revealed Symmetric Comparative Advantage (RSCA), and Normalized Revealed Comparative Advantage (NRCA). Findings highlighted significant impacts of the Zero-COVID policy, affecting 31 out of 34 product categories. Chapter 61 displayed a positive 4.75% annual growth rate, while Chapter 62 exhibited a negative growth rate of -1.15%. The study carries significant implications for various stakeholders in both Chinese and other apparel exporting industries, encompassing government entities, industry officials, policymakers, investors, researchers, and students. The limitations arise from the study's reliance on RSCA and NRCA as competitiveness indicators, particularly in utilizing a macro-level approach for measurement without delving into a micro-level perspective. This constitutes a noteworthy constraint in the study's analytical framework.

Keywords: COVID-19; Trade agreements; Apparel exports; Comparative advantage (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s42943-024-00094-6

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