Does WTO accession matter for the Chinese textile and clothing industry?

Abstract

Based on field surveys conducted in Guangdong, Zhejiang and Beijing in 2000 and 2001, this paper argues that accession to the World Trade Organisation (WTO) by China will create a new competitive arena for different categories of textile and clothing firms located in that country, partly dependent on the size and ownership of the firm. From the perspectives of reducing import tariffs, eliminating export quotas and the regulations on trade disputes, WTO accession does matter for the majority of Chinese firms in this ‘win–lose’ game. From the perspective of compliance with international standards, this paper argues that accession to the WTO does not really matter for some Chinese firms, as they may not survive the intense competition prior to 2005, when the effects of the Agreement on Textiles and Clothing materialise