Textile Industry Opens Up ASEAN Market Opportunities

China's textile industry is the dominant industry to implement the "going global" strategy, and ASEAN will be a key area for China to implement this strategy.

Reporter survey found that compared with ASEAN countries, China's textile exports have obvious advantages.

Although some ASEAN countries have classified some textile products as sensitive products, however, after the normal tax reduction process is launched, Chinese textile enterprises will face new opportunities to develop ASEAN markets.

China ASEAN textile industry has great potential for cooperation

The textile trade between China and ASEAN has maintained a good momentum of development.

In 2004, China imported 743 million dollars of textiles from ASEAN, and the most import products were cotton yarn, chemical fiber filament, chemical fiber staple, and other textile materials and intermediate products.

China's exports of textiles and clothing to ASEAN reached US $4 billion 372 million, with a wide range of varieties, knitted apparel, cotton yarn and cotton thread.

Generally speaking, ASEAN is still in the upstream position of the industrial chain in the textile trade between China and ASEAN. China is relatively downstream: in terms of clothing trade, I have strong export advantages to ASEAN, and both sides have larger import and export volume in textile raw materials and intermediate products.

However, according to the processing procedures of import and export products, the products imported from ASEAN are still in the upper reaches of yarn and so on.

Textile production, processing and sales network pfer is an important aspect of cooperation between China and ASEAN.

By the end of August this year, China has invested more than 1000 enterprises in ASEAN countries such as Kampuchea, Vietnam, Laos, Thailand and so on, and quite a few of them are textile enterprises. Kampuchea, Vietnam and other countries have also received many orders from Chinese textile enterprises.

"Tax reduction plan" will promote export ASEAN

Textile industry is one of the most competitive industries in the international market at present.

Komatsu, an expert on ASEAN in the Guangxi Academy of Social Sciences, believes that with the start of the "China ASEAN Free Trade Zone" tax reduction plan in July this year, although some ASEAN countries have classified some textile products as sensitive products, the number of sensitive products is limited, and sensitive products will also be gradually reduced.

Data from the official website of the China ASEAN Expo show that after the normal tax reduction starts, the tariff rate of textiles in China and these countries will be significantly reduced.

The average tariff rate of Thailand textiles is 21.5%. After the normal product tax reduction process, it dropped to 10.6% in January 1, 2007, dropped to 4.7% in January 1, 2009, and dropped to zero in 2010. The average tariff rate of Malaysia textiles was 16.8%, 2007 to 9.2%, 2009 to 3.9%, 2010 textile tariff abolition, Indonesian textile tax rate below 5%, and no tax reduction in the early stage.

Opportunity to expand cooperation in textile processing

The overall situation of textile trade between China and ASEAN countries is different from that of China's textiles trade.

The export of China's textile products is mainly the export of garments and other finished products, providing consumer goods to Europe, the United States and other regions.

The textile trade with ASEAN countries is mainly the export of garments and other finished products to the consumer market, such as Singapore, and more concentrated on the export of semi finished products such as yarns, cotton fabrics, chemical fabrics and so on, which is reflected in the relationship of industrial cooperation.

The formation of this trade pattern mainly depends on two factors: first, the regional division of labor between China and most ASEAN countries in the form of processing trade, that is, the use of the raw material, labor and processing capacity of our country to produce textile products of intermediate quality, and then to the ASEAN countries (such as Thailand, Kampuchea, Malaysia, etc.) to produce finished products such as garments; two, an arrangement under the textile quota system, processing textiles in China, and processing them into clothing in ASEAN countries, so as to use the quotas of ASEAN countries to export to Europe, the United States and other consumer markets.

The construction of China ASEAN Free Trade Area has made China's textile industry face great opportunities for development.

China and ASEAN, which are relatively weak in textile industry, carry out cooperation between countries and carry out textile processing in ASEAN countries, which can avoid trade friction and reduce trade risks.

According to the insiders, at present, the ability of Chinese textile enterprises to "go out" is very mature. To invest and set up factories and sales in some developing countries can also help importing countries to solve employment and taxation problems, and to expand their textile industrial structure, which is very beneficial to ASEAN countries.