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 pattern of textile and apparel trade and industrial chains between China and Asian countries. Cao Jiachang, chairman of the China Chamber of Commerce for Import and Export of Textiles, believes that the entry into force of the RCEP agreement will provide a huge boost to the formation of a new development pattern in which the domestic cycle is the main body and the domestic and international double cycles promote each other in the new era.
In recent years, with the deepening of production capacity cooperation between China and neighboring countries, especially ASEAN countries, in the field of textile and clothing, RCEP members have formed a regional industrial cooperation model with obvious advantages.
“On the one hand, with its strong comprehensive competitiveness and stable and complete industrial chain advantages, China maintains a direct export of textiles and clothing worth nearly 280 billion US dollars; on the other hand, Chinese enterprises take advantage of the low cost and labor resources of ASEAN countries to Part of the original production capacity and new production capacity ‘overflow’ to these countries has made an important contribution to the promotion of textile and apparel exports, employment and economic growth in ASEAN countries, and has also driven the growth of exports of intermediate products such as Chinese yarns and fabrics to ASEAN. , The mobility, activity and interdependence of textile and apparel trade in the region have increased significantly, which has led to the rise of the Asian supply chain centered on China.” Cao Jiachang said.
Expand the scale of intra-regional trade
RCEP integrated and expanded the “10+1″ free trade agreement between ASEAN and China, Japan, South Korea and other member states, and made high-level commitments to opening up through rules of origin, tariff reductions, positive and negative lists, etc., providing Chinese textile and garment enterprises It provides an excellent opportunity to expand the scale of intra-regional trade, optimize resource allocation, integrate and strengthen supply chains, and upgrade value chains for transformation and upgrading.
The implementation of RCEP will expand the scope of tariff reduction commodities in the original free trade agreement, some textile and clothing products, including some clothing and bedding fabrics exported to Indonesia, some chemical fibers and fabrics exported to the Philippines, clothing and textiles, and exports to Malaysia Some cotton yarn, fabric and chemical fiber products will be able to enjoy tariff reductions beyond 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 clothing 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. The long-term commitment of cooperation and the stabilization of China’s market share in Japan have extremely important positive significance for the long-term development and stability of bilateral textile and garment trade cooperation between China and Japan.” Cao Jiachang said.
The industrial chain of the textile and garment industry is relatively long, from fiber planting or manufacturing-spinning-weaving-printing and finishing-clothing manufacturing, involving a large number of links. For a long time, affected by various factors such as labor costs and supply, trade preference arrangements, cotton quotas, and procurement strategies, China and ASEAN countries have formed a supply chain layout and trade investment model that is both competitive and cooperative. 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 garment enterprises in ASEAN.
“In the RCEP rules of origin, the rules on textile and clothing products are relatively loose. After the implementation of RCEP, enterprises can enjoy tax-free treatment by importing fabrics from China, processing them into garments in ASEAN, and exporting them to Japan. Originally subject to ASEAN-Japan, According to the rules of origin of the ASEAN-Vietnam Free Trade Agreement, products that have to be produced locally, or do not enjoy duty-free treatment because ASEAN cannot produce them, will be able to enjoy Japan’s duty-free treatment, which will help ASEAN countries make full use of The production advantages of China’s intermediate products such as yarn and fabrics will 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 transfer of China’s entire textile and apparel industry chain, and build a China-centered Asian textile and apparel supply chain and a unified large market. The unified and transparent investment environment created by RCEP will also help strengthen the trade, investment and industrial synergy between China’s textile and garment industry and RECP countries. RCEP reduces trade and investment barriers and creates a unified large market, which is conducive to the optimal allocation of resources for Chinese textile and garment enterprises in the region and the realization of international layout. By strengthening the industrial division and cooperation among members and 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 improve East Asia’s position in the global textile and garment industry competition as a whole.
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, realizing complementary advantages, and building a stable industrial chain and efficient supply chain. In terms of product design and research and development, international marketing network construction, branding overseas and the development of cross-border e-commerce, RCEP also provides opportunities for Chinese textile and garment enterprises to exert their own advantages, explore regional market potential, and continuously improve the value chain.
China’s textile and garment export enterprises should seize the major development opportunities provided by RCEP and continuously deepen the integration and layout of China’s textile and garment industry chain. In this regard, Cao Jiachang believes that China’s textile and garment export enterprises must carefully study, understand and use the tariff reduction schedule. Combined with the tariff reduction arrangement of RCEP, on the one hand, the import and export trade of related products will be expanded in an orderly manner with reference to the reduction progress; To make full use of the RCEP regional rules of origin to obtain the greatest tariff preference. At the same time, enterprises should pay attention to analyzing and judging the rules of the RCEP agreement, and optimize regional industrial chain and supply chain arrangements. When carrying out international production capacity cooperation and investment layout, it is necessary to fully evaluate the relevant rules of origin and investment of RCEP and other pairwise free trade agreements in the region, and choose the best and most suitable ones. In terms of production costs, raw materials, upstream and downstream industries, and markets Carry out a 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 of RCEP member countries, evaluate existing import and export links and logistics arrangements, optimize declaration models, shorten trade time, simplify trade processes, and fully reduce trade costs. cost.
Post time: May-11-2023
