China ASEAN Tax Reduction: New Opportunities For China'S Textile Exports

2008/8/22 17:12:00 18

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Textile industry is one of the most competitive industries in China.

But over the past year, the developed countries such as the European Union and the United States have set up various trade barriers, which have made China's textile exports continue to grow rapidly.

In contrast, China's textile exports to ASEAN show an accelerated growth trend, which partly offset the economic losses caused by the sharp decline in textile exports in Europe and the United States.

The export of Chinese textiles to ASEAN countries is different from that of other regions.

Exports to Europe and the United States and other countries are mainly garments and other finished products, while textile trade with ASEAN countries is mainly concentrated in the export of semi finished products such as yarns, cotton fabrics, chemical fiber fabrics, and then processed into clothing in ASEAN countries.

The formation of this trade pattern mainly depends on two factors. One is the regional division of labor between China and most ASEAN countries under the mode of processing trade; the two is that under the textile quota system, the textile quota of ASEAN countries can be exported to Europe, the United States and other consumer markets.

With the start of the "China ASEAN Free Trade Zone" tax reduction plan, the textile tax rates of China and ASEAN countries will be significantly reduced, bringing new opportunities for the development of China's textile industry.

For example, the average tariff rate of textiles in Thailand 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 textile products was 16.8%, 2007 to 9.2%, 2009 to 3.9%, 2010 textile tariff, and Indonesian textile tax rate below 5%, basically no tax reduction in the early stage, and zero in Vietnam.