The international trade of textiles and apparel between the United States and the People's Republic of China was the focus of this research. It had three objectives. The first objective was to investigate the textile and apparel industrial sectors in the PRC, and to describe the PRC's pattern of importation and exportation of textile and apparel products worldwide. The second objective was to investigate the role of price in relation to import market share. The market share of consumption rather than market share of imports was examined in the final objective.

Data for these analyses were obtained from the Textile Information Management System database (TIMS), the Department of Labor statistical database (LABSTAT), United Nations international trade series, and the State Statistical Bureau of the PRC. SAS procedures were used for analyses (SYSREG and TSCSREG), and to graphically depict the changes in market shares. Overlay graphs showed the percentage of consumption supplied to the U.S. market by the domestic industry, the PRC, and other importing countries.

The results of the linear regression analyses suggest that for the 21 active categories studied, the combination of relative price, market share lagged one quarter, and market share lagged two quarters is a significant predictor of the current period's market share; but relative price alone is an unreliable predictor. From 1976 to 1981 the other importing countries increased their market share in these selected categories by five or more percentage points in twice as many categories as did the PRC, and in three times as many as u.s. producers. Increases and decreases in consumption balanced each other out, but domestic production showed twice as many decreases as increases in these categories. Overall, U.S. producers were more competitive in man-made fiber and wool apparel than in comparable cotton categories. They were also more competitive in the female apparel market than in the male apparel market.

The implications of this research relate to policy formulation of textile agreements between the United States and the People's Republic of China, and to possible production decisions by U.S. manufacturers.