The rapid economic development of the mainland Chinese economy has recently caught the attention from the West on its impacts on the world economy. China has emerged as a trade heavyweight and become the world's manufacturing centre. A question may be raised is that how competitive are clothing and textiles manufacturing industries between China and other countries in the world. By using a revealed comparative advantage (RCA) measure of competitiveness developed by Michael Porter, the results suggest that China's clothing and textiles manufacturing industries are highly competitive in the world market. There are two key factors contributing to China's remarkable economic growth and trade miracle: one is its cheap labour, and the other is its unfair foreign exchange rate. China has kept the value of Yuan in tight band near 8.28 to the US dollar since 1994.