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China's tea industry is now facing intense competition. In comparison with other countries, China is not in a remarkably advantageous position regarding tea production and export.

China's tea yield remains low. In 1999, China's average specific yield of tea was only 743.2 kilograms/per hectare, which was about 69% of the average specific yield of the whole world, or 43% of Japan, 35% of Kenya and 79% of Indonesia.

China's tea prices and tea production efficiency is also low. In 2000, the average price of tea exports from China was US$1.593/per kilogram, which was about 80% of the average tea price of the year on the London tea market.

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