[The entry into force of the RCEP agreement will provide a huge boost to China's textile and apparel industry]
Release date:[4:23:03] Read a total of [39] time

RCEP is currently the world's largest free trade zone. The implementation of RCEP will have a positive and far-reaching impact on the textile and apparel trade and industrial chain structure 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 of China's 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.

   In recent years, as China and neighboring countries, especially ASEAN countries, have deepened production capacity cooperation in the textile and apparel field, 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 garments of nearly US$280 billion; Part of the original production capacity and new production capacity'spilled' to these countries, making important contributions to promoting the textile and apparel exports, employment and economic growth of ASEAN countries, and also driving the export growth of Chinese yarns, fabrics and other intermediate products to ASEAN. , The liquidity, activity and interdependence of textile and apparel trade in the region have increased significantly, which has led to the rise of China-centric Asian supply chains." Cao Jiachang said.

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. It has made high-level openness commitments through a number of measures such as rules of origin, tariff reduction, positive and negative lists, and has provided Chinese textile and apparel companies. It provides an excellent opportunity to expand the scale of intra-regional trade, optimize resource allocation, integrate and strengthen the supply chain, and upgrade the value chain for transformation and upgrading.

The implementation of RCEP will expand the scope of tariff concessions in the original free trade agreement. Some textile and apparel products, including some garments and bedding fabrics exported to Indonesia, some chemical fibers and fabrics exported to the Philippines, garments and textiles, and exports to Malaysia Some cotton yarn, fabrics 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, China's textile and apparel exports to Japan have been most directly and significantly affected. "After the RCEP takes effect, Japan will eventually achieve zero tariffs on most Chinese textile and apparel products within 15 years. This has established a positive and predictable policy environment for the long-term development of China-Japan textile and apparel trade, and will stabilize the mutual The long-term commitment of cooperation and the consolidation of China's market share in Japan are extremely important and positive for the long-term development and stability of Sino-Japanese bilateral textile and apparel trade cooperation." 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 the middle. For a long time, under the influence of many factors such as labor cost and supply, preferential trade arrangements, cotton quotas, procurement strategies, etc., China and ASEAN countries have formed a supply chain layout and trade investment model that are both competitive and cooperative. RCEP's unified, concise and clear rules of origin will have a very significant guiding role for Chinese textile and garment enterprises in the ASEAN trade, investment and supply chain layout.

“In the RCEP rules of origin, the rules on textile and apparel products are relatively loose. After the implementation of RCEP, enterprises can enjoy duty-free treatment when they import fabrics from China, process them into garments in ASEAN, and then export to Japan. Originally restricted by ASEAN-Japan, According to the ASEAN-Vietnam Free Trade Agreement’s rules of origin, products that have to be produced locally or cannot enjoy tariff-free treatment due to ASEAN’s inability to produce will be able to enjoy Japan’s tariff-free treatment, which will help ASEAN countries to make full use of The production advantages of China's yarns, fabrics and other intermediate products have expanded exports to Japan, which will also benefit the export of China's 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 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 coordination 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 for Chinese textile and garment enterprises in the region and the realization of an international layout. By strengthening the industrial division of labor and cooperation between member partners, we will promote the formation of a more reasonable closed loop of the regional industrial chain, supply chain and value chain that benefits all parties in the domain, 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 the aspect of Chinese textile and garment enterprises making use of the low-cost advantages of ASEAN countries to achieve complementary advantages and build a stable industrial chain and efficient supply chain. In terms of product design and R&D, international marketing network construction, brand going overseas, and development of cross-border e-commerce, RCEP also provides opportunities for Chinese textile and apparel companies to leverage their advantages, explore regional market potential, and continuously improve the value chain.

   Chinese textile and garment export enterprises should seize the major development opportunities provided by RCEP to continuously deepen the integration and layout of China's textile and garment industry chain. In this regard, Cao Jiachang believes that Chinese textile and garment export enterprises must carefully study, understand and use tariff reduction tables. Combining RCEP’s tariff reduction arrangements, on the one hand, the import and export trade of related products will be expanded in an orderly manner with reference to the progress of the reduction. In order to make full use of the RCEP regional rules of origin to obtain the largest tariff preferences. At the same time, companies should pay attention to analyzing and judging RCEP rules and optimizing regional industrial chains and supply chain arrangements. When carrying out international capacity cooperation and investment layout, it is necessary to fully evaluate the origin, investment and other relevant rules of RCEP and other two-two free trade agreements in the region, and select the best and use the appropriate 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, companies also need to pay attention to and study the implementation of the customs procedures, inspection and quarantine, and technical standards of the RCEP member states, evaluate the existing import and export links and logistics arrangements, optimize the declaration mode, shorten the trade time, simplify the trade process, and fully reduce the trade. cost.

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