What Opportunities Will The Successful Identification Of ECFA Bring To The Footwear Industry Across The Taiwan Strait?

The landmark Economic Cooperation Framework Agreement (ECFA) in the history of the development of cross-strait relations is determined to be signed by the leaders of the two sessions in the mountain city of Chongqing in June 29th, anchoring piles for the normalization of cross-strait economic relations. According to the agreement, the two sides will reduce taxes on 806 products originating from the mainland and Taiwan and expand and open to some sectors of services. What opportunities will the successful identification of ECFA bring to the cross-strait footwear industry?

Explosion of shoe companies in Taiwan

It is understood that mainland enterprises to Taiwan financing channels currently have the first listing (IPO) and second listed (TDR) two.

The Taiwan stock exchange was established in 1962. In 1996, Taiwan opened its foreign businesses to Taiwan's second listing (TDR). In 2008, Taiwan opened the first listing of foreign enterprises to Taiwan (IPO).

For the future trend of TDR after the signing of ECFA, Taiwan securities industry believes: "the signing of ECFA will trigger the tide of listing of mainland enterprises in Taiwan.

In the next three years, mainland enterprises listed in Taiwan second (TDR) are expected to reach 100.

The most attractive part of Taiwan's securities market is the low cost of listing.

According to introduction, in Taiwan

Promoting the complementary advantages of cross-strait footwear enterprises

"The biggest advantage of signing the Cross Strait Economic Cooperation Framework Agreement (ECFA) is to promote the complementary advantages of Taiwan enterprises and mainland enterprises and form a joint effort to jointly face the competition in the world market and expand the share of products in the world market."

Ding Kunhua, the supervisor of the Taiwan Federation of Investment Enterprises Association, said.

The advantage of Taiwan shoe enterprises lies in its products.

Another advantage of ECFA after signing is that the early closing list includes the financial sector.

Before, financing is the biggest difficulty facing the development of Taiwan enterprises in mainland China.

After the signing of the agreement, Taiwan businessmen can participate in mainland loans and RMB business in a short time, and increase the financing channels of Taiwan enterprises, which is conducive to the future development of Taiwan shoe enterprises.

The signing of ECFA will also bring excellent opportunities for mainland shoe companies.

The mainland's semi-finished products are shipped to Taiwan, and the same value of Taiwan's brand value, technology capability and marketing channel can be sold 15% to 20% internationally. This will effectively enhance the competitiveness of mainland products in the international market.

Opportunities outweigh challenges and cooperation is greater than competition.

The mainland is not only the largest factory in the world, but also the largest market in the world.

Taiwan enterprises can develop products that are suitable for the mainland market.

He believes that Taiwan enterprises can have a place in the mainland market and even in the international market by virtue of their design capabilities and brand advantages.

Promoting pformation and upgrading of China's shoe processing trade

Through the entry of tariff reduction on both sides of the Taiwan Strait, we can find that many areas such as high-end components and other technology industries that are open to the mainland are relatively weak in mainland China, and are also needed by the mainland to import from other countries.

The above areas are beneficial to the development of the mainland industry after Taiwan's zero tax.

And Taiwan's opening to the mainland is almost the weakness of Taiwan itself, which needs the advantage of the mainland to make up for it.

According to the insiders, "the landing of advanced technology products in Taiwan has provided some external impetus for the self improvement and progress of the Chinese machinery industry to a certain extent, and promoted the manufacturing of the shoe machine in mainland China to become more sophisticated."

The cost of importing advanced equipment, raw materials and other aspects of the shoe processing enterprises in the future will be even lower. This may reduce the operating cost of processing trade footwear enterprises to a certain extent, and thus more profits will be invested in pformation and upgrading, to a certain extent, it will promote the pformation and upgrading of processing trade shoe enterprises.

From the point of view of shoe making machinery, the quality quality produced in Taiwan is much better than that of the mainland.

The signing of the ECFA means that these shoe making machines will be cheaper and will be of great benefit to the upgrading of the shoe making machinery industry in the mainland.

To a certain extent, it provides external impetus for the self improvement and progress of the machinery industry in mainland China, and promotes the more sophisticated machinery manufacturing products in mainland China.

The signing of the Cross Strait Economic Cooperation Framework Agreement (ECFA) is the most significant breakthrough in the field of cross-strait economic and trade cooperation over the past 60 years.

It helps to promote the exchange and development of footwear enterprises across the Taiwan Strait.