Abstract: The influential factors of Chinese tea industry competitiveness in the world tea market were investigated and analyzed by using Porter’s competitive advantages theory. By identifying the advantageous and restricted influential factors, suggestions are recommended. Major advantageous factors include the natural resources, labor force and domestic market demand. Some restrictions to the industry include having low utility of production factors, undeveloped upper-stream industry, low educational-level of labors, and so on.

Key words: tea industry, competitive advantages, international competitiveness