Since the beginning of this year, under the complex and severe external environment and the continuous downward pressure of weak external demand, the effective implementation of RCEP has been like a “strong shot”, bringing new momentum and opportunities to China’s foreign trade. Foreign trade enterprises are also actively exploring the RCEP market, seizing structural opportunities, and seeking new opportunities in adversity.
Data is the most direct proof. According to customs statistics, China’s total imports and exports to the other 14 members of RCEP in the first half of the year amounted to 6.1 trillion yuan, a year-on-year increase of 1.5%, and its contribution to foreign trade growth exceeded 20%. The latest data released by the China Council for the Promotion of International Trade shows that in July, the national trade promotion system issued 17298 RCEP certificates of origin, a year-on-year increase of 27.03%; There were 3416 certified enterprises, a year-on-year increase of 20.03%.
Seize opportunities——
Expand new space in the RCEP market
Affected by factors such as declining foreign demand, foreign trade orders in China’s textile industry have generally declined, but orders from Jiangsu Sumida Light Textile International Trade Co., Ltd. continue to grow. Over the past year, thanks to the policy dividend of RCEP, customer order stickiness has increased. In the first half of this year, the company has processed a total of 18 RECP certificate of origin, and the company’s clothing export business has developed steadily. “Yang Zhiyong, Assistant General Manager of Sumida Light Textile Company, told International Business Daily reporters.
While timely exploring opportunities in the RCEP market, improving the global supply chain integration capability is also an important direction for Sumida’s efforts. According to Yang Zhiyong, Sumida Light Textile Company has strengthened its cooperation with RCEP member countries in recent years. In March 2019, Sumida Vietnam Clothing Co., Ltd. was established in Vietnam. Currently, it has 2 production workshops and 4 cooperative enterprises, with a production scale of over 2 million pieces per year. It has formed an integrated clothing industry cluster with Qinghua Province in northern Vietnam as the supply chain management center and radiating to the northern and central northern provinces of Vietnam. In the first half of this year, the company sold nearly $300 million worth of clothing produced by the Southeast Asian supply chain to various parts of the world.
On June 2nd of this year, RCEP officially took effect in the Philippines, marking a new stage of comprehensive implementation of RCEP. The huge potential and opportunities contained in the RCEP market will also be fully unleashed.
95% of the canned vegetables and fruits produced by Qingdao Chuangchuang Food Co., Ltd. are exported overseas. The relevant person in charge of the company stated that after the full implementation of RCEP, the company will choose more tropical fruits from Southeast Asia as raw materials and process them into mixed fruit canned products for export to markets such as Australia and Japan. It is expected that our imports of raw materials such as pineapple and pineapple juice from ASEAN countries will increase by more than 15% year-on-year this year, and our external exports are also expected to increase by 10% to 15%
Optimize services——
Help enterprises enjoy RCEP dividends smoothly
Since the implementation of RCEP, under the guidance and service of government departments, Chinese enterprises have become increasingly mature in utilizing preferential policies in RCEP, and their enthusiasm for using RCEP certificates of origin to enjoy benefits has also continued to rise.
The latest data released by the China Council for the Promotion of International Trade shows that there were 17298 RCEP certificate of origin visas in the national trade promotion system in July, a year-on-year increase of 27.03%; 3416 certified enterprises, a year-on-year increase of 20.03%; The export destination countries include 12 implemented member countries such as Japan, Indonesia, South Korea, and Thailand, which are expected to reduce tariffs by a total of $09 million for Chinese products in RCEP importing member countries. From January 2022 to August this year, the China Council for the Promotion of International Trade has cumulatively reduced tariffs by $165 million for Chinese products in RCEP importing member countries.
In order to further help enterprises make full use of the benefits of RCEP, the 20th China ASEAN Expo to be held in September will focus on fully organizing the RCEP Economic and Trade Cooperation Business Summit Forum, organizing government, industry, and academic representatives from various countries in the region to discuss key areas of RCEP implementation, deeply exploring the role of RCEP functions, and planning to initiate the establishment of the RCEP Regional Industrial Chain Supply Chain Cooperation Alliance.
In addition, the Ministry of Commerce will jointly host the RCEP National SME Training Course with the All China Federation of Industry and Commerce, providing an important platform for small and medium-sized enterprises to further enhance their awareness and ability to utilize the RCEP preferential rules.
Xu Ningning, Executive Chairman of the China ASEAN Business Council and Chairman of the RCEP Industrial Cooperation Committee, has been working with ASEAN for over 30 years and has witnessed the 10-year process of RCEP construction and implementation. In the current situation of sluggish world economic growth, economic globalization, and severe challenges facing free trade, the RCEP rules have created favorable conditions for enterprise cooperation and development. The key now is whether enterprises can make good use of this favorable condition and how to find the right entry point to take business actions, “Xu Ningning said in an interview with the International Business Daily reporter.
Xu Ningning suggests that Chinese enterprises should seize the business opportunities brought by institutional innovation in regional openness and implement innovative management. This requires enterprises to enhance their awareness of free trade agreements in their business philosophy, strengthen research on free trade agreements, and develop business plans. At the same time, plan to overlap and make good use of free trade agreements in business, such as actively exploring larger international markets through overlapping and utilizing RCEP, China ASEAN free trade agreements, etc. The actions of enterprises can not only reap dividends in the implementation of RCEP, but also demonstrate value and contribution in this major opening up initiative
Post time: Oct-16-2023