On January 1, 2022, RCEP officially entered into force.The implementation of RCEP has brought multiple positive effects on trade and investment among member states, as well as multiple benefits to China’s sewing machinery industry.
After RCEP takes effect, over 90 percent of goods traded will be tariff-free.There are 4 specific tax reduction modes: zero immediately after the agreement takes effect, zero in the transitional period, partial tax reduction and exceptional products.
In terms of the sewing machine industry, except for a few products (such as industrial sewing machine shuttles), China will eventually realize zero tariff on the import of sewing machinery products from RCEP countries. In addition to Vietnam (for household machines) and Cambodia (for spare parts), RCEP countries will eventually achieve zero import tariffs on Chinese sewing machinery products.
For China’s sewing machinery industry, RCEP will have a far-reaching positive impact on the scale of foreign trade and the deepening of supply chain cooperation, and bring opportunities and challenges to the industry.
Let’s see some datas first.
According to China customs data: In 2021, the total trade volume between China’s sewing machinery industry and RCEP market reached 1.476 billion US dollars, accounting for 35.93% of the industry’s import and export volume. Exports to the RCEP market are 995 million US dollars, accounting for 31.63% of the industry’s exports, and imports are 481 million US dollars, accounting for 49.97% of the industry’s imports.
Among them, 800 million US dollars were exported to ASEAN, accounting for 25.43% of the industry’s exports. Imports from Japan amounted to us $441 million, accounting for 45.78% of the industry’s imports.The RCEP’s formal entry into force will further improve China’s trade facilitation through relevant markets and reduce import and export costs for enterprises.At the same time, it will further strengthen the tightness of both sewing machinery and downstream supply chain.
(To be continued)
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