A Comparative Study of the Role of China and India in Sustainable Textile Competition in the U.S. Market under Green Trade Barriers

The United States is the most important textile import market in the world, and one of the most important export targets of developing countries. In view of its ecological environment and consumer health, the United States has put forward increasingly harsh environmental protection systems and standards for imported textile products, and its environmental trade barriers have been steadily strengthened. China’s textile exports increased substantially after joining the World Trade Organization (WTO) in 2000; at present, the textile imports of the United States from China and India reach in total more than one third of all their imports. China and India both have comparative advantages in the import trade of textile raw materials and clothing in the United States (U.S.). On the basis of the United Nation ComTrade Rev. 3, this paper studies the role of China and India in the United States textile market, including calculating the trade competitiveness index, revealing the competitive advantages of China and India, and investigating the impact of both Chinese and Indian textiles on United States imports from the rest of the world across three main textile sectors in the period 2000–2016, especially in the context of green trade barriers. We find that the relative textile import prices, the ecological standard of China’s textile production re-edited Oeko-Tex Standard 100 in 2008 and export tax policy, and the competitive advantages of China and India had varied impacts on relative U.S. textile imports across related sectors under green environmental trade barriers. These findings recognize China’s competitiveness in international trading, and also provide suggestions regarding China’s competitiveness and sustainable development in the U.S. market.