Abstract
This study examines major changes in China's textile and clothing industries, studies their reactions to quota elimination, and explores the current status of China's textile and clothing industries, and to bring enhanced understanding to Western countries. Fourteen in-depth interviews were conducted at the end of 2005 and beginning of 2006 in China. Four themes were found. China's textile and clothing industries have transitioned from a planned economic system to a market economic system. The major textile and clothing production and trading centers nowadays are located along the East Coast of China. Different formats of textile and clothing enterprises have gone through different transitional processes. Most of these companies today face three challenges: the instability of the trading environment, changing currency exchange rates, and an increasing energy price. New strategies have been developed, such as focusing on quality rather than quantity, developing Chinese brands, and moving facilities to other countries to avoid safeguards and restraints and to get even cheaper labor. Contributions and limitations are discussed as well.