International Competitiveness of Chinese Tea Industry and Policy Implications
YAN Feng-zhu

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Abstract

The tea industry in China is a traditionally advantaged industry.However,the competitiveness of the Chinese tea in international market has been descending continuously since 1980's and challenged by India,Kenya,Sri Lanka and Indonesia etc.This paper makes use of the statistical data from Food and Agriculture Organization of the United Nations,by such dominant evaluation index as possession rate of international market,revealed comparative advantage index and producer's price index and its recessive evaluation indexª²yield of per unit area,to measure and calculate the variety of international competitiveness of tea in China,India,Sri Lanka,Kenya and Indonesia since 1980's.It has been reached the conclusion that the position of Chinese tea is basically weak on the four evaluation indexes,and obvious in revealed comparative advantage index,producer's price index and yield of per unit area.Based on empirical analysis and the five decisive factors of international competitiveness in Prof.Porter's National Diamond Model,the article puts forward the countermeasures and proposals to promote the international competitiveness of Chinese tea at the five levels of factor ndowment,corporation strategy,related industry,demand factor and governmental behavior.At the level of factor endowment,emphasis should be put on the solution to the low rate of production.The new production factor should be Introduced to the tea industry.at the level of corporation strategy,the tendency of the international tea competitiveness should be acclimated,and the united scale management should be promoted to seek a famous brand of famous tea.At the level of demand factor,based on the firmness of the traditional market,the newly arisen market should be expanded strongly and the concentration degree of the export market should be lowered.At the level of related industry,specialized production should be developed actively and provide the specialized productive material for tea production.At the level of the government,the boundary of administrative duty and function should be made clear within the framework of World Trade Organization.Emphasis should be put on the solution to the tea standardization,to regulate effectively tea export disorder from the sources and ends.Governmental behavior may be more critical compared with the four of the other co untries,because the actual circumstance of China comes to the decision in the tea industry.
Keywords: Chinese tea; International competitiveness; National Diamond Model; Promotion