Seize the opportunity of RCEP to further enhance China’s textile and apparel value chain
RCEP is currently the largest free trade zone in the world. The implementation of RCEP will have a positive and far-reaching impact on the textile and apparel trade and industrial chain pattern between China and Asian countries. Cao Jiachang, president of the China Textile ImportExport Chamber of Commerce, believes that the entry into force of the RCEP agreement will form a new era for the Chinese textile and apparel industry in the new era with the domestic cycle as the main body and the domestic and international dual cycles promoting each other. The development pattern provides huge assistance.
In recent years, with the deepening of production capacity cooperation in the textile and apparel field between China and neighboring countries, especially ASEAN countries, a regional industrial cooperation model with obvious advantages has been formed among RCEP members.
“On the one hand, with its strong comprehensive competitiveness and stable and complete industrial chain advantages, China has maintained a direct export of textiles and clothing of nearly 280 billion US dollars; on the other hand, Chinese enterprises have taken advantage of the low cost and labor resources of ASEAN countries. Advantages, “spillover” of part of the original production capacity and new production capacity to these countries, making important contributions to promoting textile and apparel exports, employment and economic growth in ASEAN countries, and at the same time It has also driven the growth of China’s exports of intermediate products such as yarn and fabrics to ASEAN, and the fluidity, activity and interdependence of textile and apparel trade in the region have significantly increased, thus driving the rise of China-centered Asian supply chains.” Cao Jiachang explain.
Expand the scale of intra-regional trade
RCEP integrates and expands the “10+1” free trade agreement between ASEAN and China, Japan, South Korea and other member states, through rules of origin, reduction of tariffs, positive The negative list and other measures have made a high-level commitment to openness, providing Chinese textile and garment enterprises with opportunities to expand intra-regional trade scale, optimize resource allocation, integrate and strengthen supply chains, and enhance value chains fortransformation and upgrading Excellent opportunity.
The implementation of RCEP will expand the scope of tariff concessions in the original free trade agreement. Some textile and clothing products include some clothing and bedding fabrics exported to Indonesia, some chemical fibers and fabrics, clothing and textiles exported to the Philippines, and some exports to the Philippines. Some of thecotton yarn, fabrics and chemical fiber products exported by Malaysia will be able to enjoy tariff concessions beyond those in the original free trade agreement. RCEP is the first free trade agreement between China and Japan. After the implementation of RCEP, the most direct and significant impact is China’s textile and apparel exports to Japan. “After RCEP takes effect, Japan will eventually achieve zero tariffs on the vast majority of Chinese textile and apparel products within 15 years. This will create a positive and predictable policy environment for the long-term development of Sino-Japanese textile and apparel trade, and will stabilize the mutual trust between Chinese and Japanese enterprises.” The long-term commitment to cooperation, stabilizing China’s market share in Japan, is of extremely important positive significance to the long-term development and stability of bilateral textile and apparel trade cooperation between China and Japan,” Cao Jiachang said.
The textile and apparel industry has a long industrial chain, from fiber planting or manufacturing – spinning – weaving – printing and dyeing and finishing – clothing manufacturing, involving a large number of links in between. For a long time, China and ASEAN countries have formed a supply chain layout and trade investment model that is both competitive and cooperative due to factors such as labor costs and supply, preferential trade arrangements, cotton quotas, and procurement strategies. RCEP’s unified, concise and clear rules of origin will have a very significant guiding role in the trade, investment and supply chain layout of Chinese textile and apparel companies in ASEAN.
“In the RCEP rules of origin, the rules for textile and clothing products are relatively loose. After the implementation of RCEP, companies will import fabrics from China, process them into clothing in ASEAN, and then export them. Anyone who comes to Japan can enjoy duty-free treatment. Products that were originally subject to the rules of origin of the ASEAN-Japan and ASEAN-Vietnam Free Trade Agreements and had to be produced locally, or that were not able to enjoy tariff-free treatment because ASEAN was unable to produce them, will be able to enjoy the duty-free treatment. The tariff-free treatment to Japan will help ASEAN countries make full use of China’s production advantages of intermediate products such as yarns and fabrics to expand exports to Japan, which will also benefit the export of Chinese intermediate products to ASEAN countries,” Cao Jiachang said.
Deepen the integration and layout of the industrial chain
The implementation of RCEP will help slow down the external transfer of China’s entire textile and apparel industry chain and build a China-centered Asian textile and apparel supply chain and a unified market. The unified and transparent investment environment created by RCEP will also be conducive to enhancing trade investment and industrial synergy between China’s textile and apparel industry and RECP countries. RCEP lowers trade and investment barriers and creates a unified large market, which is conducive to the optimal allocation of resources by Chinese textile and garment enterprises in the region and the realization of international layout. By strengthening the industrial division of labor and cooperation among member partners, we will promote the formation of a more reasonable regional industrial chain, supply chain and value chain closed loop that benefits all parties in the region, and overall enhance East Asia’s position in the global textile and apparel industry competition.
The implementation of RCEP will also play a positive role in Chinese textile and garment enterprises taking advantage of the low-cost advantages of ASEAN countries to achieve complementary advantages and build a stable industrial chain and efficient supply chain.Extreme effect. In terms of product design and research and development, international marketing network construction, brand overseas and development of cross-border e-commerce, RCEP also helps Chinese textile and apparel companies leverage their own advantages, explore regional market potential, Continuously moving up the value chain provides opportunities.
Chinese textile and apparel export enterprises should seize the major development opportunities provided by RCEP and continuously deepen the integration and layout of China’s textile and apparel industry chain. In this regard, Cao Jiachang believes that Chinese textile and apparel export enterprises must carefully study, understand and apply tariff reduction Let the table. Combined with the tariff reduction arrangements of RCEP, on the one hand, we will expand the import and export trade of related products in an orderly manner with reference to the progress of concessions; on the other hand, we will establish a refined and complete division of labor system in the region based on the characteristics of each RCEP member country applying different tariff reduction ranges. To make full use of the RCEP regional rules of origin to obtain the greatest tariff preferences. At the same time, enterprises should pay attention to analyzing and judging the rules of the RCEP agreement and optimizing regional industrial chain and supply chain arrangements. When carrying out international production capacity cooperation and investment layout, it is necessary to fully evaluate the origin, investment and other relevant rules of RCEP and other free trade agreements in the region, and select the best and most suitable ones to use in terms of production costs, raw materials, industrial upstream and downstream, and markets. Carry out more complete industrial chain and value chain adjustment and layout. In addition, enterprises also need to pay attention to and study the implementation of customs procedures, inspection and quarantine, and technical standards rules of each RCEP member country, evaluate the existing import and export links and logistics arrangements, optimize the declaration model, shorten trade time, simplify trade processes, and fully reduce trade costs. cost.
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