Textile and Apparel Industries

Zero Covid Policy: Understanding its Impact on China's Apparel Comparative Advantage

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Abstract

China's textile and apparel industry, a global leader for two decades, faces recent challenges, including increased labor costs, trade conflicts, and increased regional competition. The COVID-19 pandemic added pressure, with the Zero-COVID policy leading to reduced production, factory closures, and supply chain disruptions. These factors negatively impacted China's apparel exports and its reputation with Western buyers. The study assesses export competitiveness by analyzing two and four-digit product categories (Harmonized System codes 61 and 62) using Revealed Comparative Advantage (RCA) and Normalized Revealed Comparative Advantage (NRCA). Findings highlight the significant impact of the Zero-COVID policy on several product categories within Chapters 61 and 62. This research provides valuable insights for policymakers and stakeholders, guiding strategic decisions to address challenges, enhance competitiveness, and ensure the industry's resilience in a changing global landscape.

Keywords: Zero Covid, Comparative Disadvantage, RCA, NRCA

How to Cite:

Das, S., Hasan, M. & Das, D., (2024) “Zero Covid Policy: Understanding its Impact on China's Apparel Comparative Advantage”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17435