China's textile and garment value chain to upgrade again
Release time:
2024-07-31
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 garment trade and industrial chain pattern between China and Asian countries. Cao Jiachang, president 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 for China's textile and apparel industry to form a new development pattern with domestic large cycles as the main body and domestic and international double cycles promoting each other in the new era.
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 garment trade and industrial chain pattern between China and Asian countries. Cao Jiachang, president 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 for China's textile and apparel industry to form a new development pattern with domestic large cycles as the main body and domestic and international double cycles promoting each other in the new era.
In recent years, with the deepening of 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 competitive strength and stable and complete industrial chain advantages, China maintains a direct export of textile and clothing of nearly 280 billion US dollars; on the other hand, Chinese enterprises take advantage of the low cost and labor resources of ASEAN countries to 'spillover' some of the original production capacity and new production capacity to these countries, which has made important contributions to promoting textile and clothing exports, employment and economic growth of ASEAN countries, at the same time, it has also led to the growth of China's exports of intermediate products such as yarns and fabrics to ASEAN, and the mobility, activity and interdependence of textile and clothing trade in the region have increased significantly, thus driving the rise of China-centered Asian supply chains." Cao Jiachang said.
Expanding the scale of intraregional trade
RCEP integrates and expands the "10 1" free trade agreements between ASEAN and China, Japan, South Korea and other member states, and has made high-level opening commitments through a number of measures such as rules of origin, tariff reduction, positive and negative lists, and is a Chinese textile and apparel company. 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 under the original FTA, and some textile and apparel products, including some garments and bed fabrics exported to Indonesia, some chemical fibers and fabrics, garments and textiles exported to the Philippines, and some cotton yarns, fabrics and chemical fiber products exported to Malaysia, will be able to enjoy tariff concessions beyond the original FTA. RCEP is the first free trade agreement between China and Japan. After the implementation of RCEP, China's textile and clothing exports to Japan are most directly and significantly affected. "After the RCEP takes effect, Japan will eventually achieve zero tariffs on the vast majority of Chinese textile and apparel products within 15 years. This has created a positive and predictable policy environment for the long-term development of Sino-Japanese textile and apparel trade, and will stabilize the mutual cooperation of Chinese and Japanese companies. The long-term commitment of China's market share in Japan is of extremely important positive significance to the long-term development and stability of Sino-Japanese bilateral textile and apparel trade cooperation." Cao Jiachang said.
The textile and garment industry has a long industrial chain, involving a large number of links from fiber planting or manufacturing-spinning-weaving-printing and dyeing and finishing-garment manufacturing. For a long time, affected by labor costs and supply, trade preferential arrangements, cotton quotas, procurement strategies and other factors, China and ASEAN countries have formed a competitive and cooperative supply chain layout and trade and investment model. RCEP's unified, concise and clear rules of origin will play 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 garment products are relatively loose. After the implementation of RCEP, enterprises can enjoy duty-free treatment if they import fabrics from China, process them into garments in ASEAN and export them to Japan. 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 products that could not enjoy tariff-free treatment due to the inability of ASEAN to produce, will be able to enjoy tariff-free treatment in Japan. It will help ASEAN countries make full use of the production advantages of China's 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.
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