ECFA Boosts Cross Strait Textile Cooperation Into "Fast Lane"

Insiders say that

ECFA promotes the growth of trade in textile and garment industry across the Taiwan Strait

By the Fujian provincial government, China Council for the promotion of trade,

As the head of the delegation of Taiwan, Huang Weiji, Secretary General of the Taiwan textile and Development Association, organized the largest exhibition group to visit the Haibo conference.

ECFA was signed in June 29th last year and came into effect in September 12th.

Huang Weiji said that since January 1st this year, 136 textiles and 21 mainland textiles in Taiwan have begun to enjoy the tariff reduction and exemption offered by the other side.

Tariff reduction directly brought about a significant increase in the import and export of textiles across the Strait.

Taiwan customs statistics show that the amount of Taiwan's textile exports to the mainland in the first two months of this year amounted to US $414 million, accounting for 22% of the total value of textile exports in Taiwan, an increase of 45% over the same period last year.

The amount of textiles imported from Taiwan amounted to US $147 million, accounting for 27% of the total textile imports in Taiwan, an increase of 21% over the same period last year.

Zhuang Fangrong, general manager of Taiwan Xu Rong Group, said that after tax relief, there is a lot of benefits between the two sides.

Since the beginning of this year, a large number of raw materials in Taiwan have not been imported from the mainland, such as linen, silk, silkworm chrysalis protein, and so on. Taiwan textile and clothing are facing more choices.

Meanwhile, the mainland's clothing brands gradually expand the use of high-grade fabrics in Taiwan and all kinds of environmentally friendly fabrics.

At this Expo, Xu Rong Group also signed contracts with gage (China) weaving and dyeing Garments Co., Ltd. on the cold pfer printing technology and production cooperation projects.

Long-term prospects for cooperation between the two sides of the textile and garment industry are worth looking forward to.

The ECFA effect has just started to "ferment", and tax relief has strongly promoted the development of the textile and garment industry across the Taiwan Strait, and its long-term cooperation prospects are worth looking forward to.

Li Quanjiao, member of the Central Committee of the Chinese Kuomintang, said that the increase in investment in Taiwan Pavilion of the Shanghai Expo was nearly 30%. The investment amount of Taiwanese businessmen in Shishi, Jinjiang and other places increased significantly. All of these indicate that ECFA is playing an active role and the cooperation between the two sides has obviously increased.

ECFA has promoted the industrial cooperation between the two sides of the Strait, which is very positive for both sides, especially for Taiwan.

Cotton prices have risen sharply since last year, but due to the ECFA effect, the profitability of some textile enterprises in Taiwan has risen by several percentage points.

The profitability of textile and other upstream enterprises has a positive effect on clothing and other downstream enterprises.

In the short term, Taiwan will benefit more.

Because Taiwan textile industry started earlier in the market, and the research and development of its products were slightly ahead, Taiwan exported more to the mainland.

From the medium to long term, the mainland will also benefit significantly.

The mainland has talent and market advantages. Taiwan textile industry will increase its investment in the mainland, and in fact, it will also enhance itself and benefit from both sides. "

Yang Jun, vice president of the China Textile entrepreneur association, believes that ECFA is more closely linked to the two economies of the mainland and Taiwan.

As an emerging economy, the development of the mainland's domestic demand market has great attraction for the textile industry in Taiwan.

Through preferential tariffs, Taiwan textile enterprises will benefit from trade, investment and so on. At present, cross-strait cooperation is more reflected in Taiwan's unilateral investment in the mainland.

The Taiwan market is a small market for the mainland, but with the deepening of cross-strait industry exchanges, the mainland textile enterprises will gradually realize that Taiwan can play the role of "bridgehead".

Taiwan is relatively relaxed in terms of financial management, capital flows, tax policies, international trade and so on. Mainland enterprises need to lay the world market. Taiwan can play a very good window role.

Taiwan's one-way investment in the mainland will gradually become a two-way investment.

At present, some textile enterprises in Zhejiang and other places have begun to invest in Taiwan.