China, Japan And South Korea Free Trade Zone Negotiations Successfully Signed For China'S Textile Industry Is An Opportunity Or A Challenge?

A few days ago, China, Japan and South Korea formally signed investment agreements and decided to launch negotiations on free trade area between China, Japan and Korea in the year. Since 2002, the concept of China Japan Korea free trade zone was put forward. After 10 years of brewing, it finally entered the official launch stage.

It is conceived that this is a three country free trade area consisting of a large market with a population of over 1 billion 500 million. Its construction and start-up will include

The trade in goods, services and investment between China, Japan and South Korea has a profound impact.

Then China's textile industry

What opportunities and challenges will usher in this cooperation?

What is the FTA?

The concept of free trade zone (FTA) is an exception agreement under the WTO framework. Simply speaking, two or more than two countries or regions, through signing the FTA agreement, will further open the market on the basis of WTO's most favored nation treatment, and cancel the tariff and non-tariff barriers of the large part of the products in stages.

In the field of goods trade, under normal circumstances, more than 90% of products are subject to zero tariff.

In the field of service trade and investment, the expansion of market access and the liberalization of trade and investment are mutually expanded.

Li Yanzhe, director of the World Trade Organization of Hebei Provincial Department of Commerce,

From the perspective of goods trade, the tariff of the free trade area is more favorable than the WTO agreement. From the perspective of service trade and investment, the market under the framework of the free trade area is further open than the WTO agreement.

Zhang Yansheng, Secretary General of the academic committee of the national development and Reform Commission,

Tariffs and other trade restrictions in the free trade area will be cancelled, and goods and other goods will flow more smoothly. Manufacturers in the region can often reduce production costs, gain greater market and income, consumers can get lower prices of goods, and the overall economic benefits of each member's economy will increase.

Who will benefit?

Since 2009, the global economic structure has undergone fundamental changes due to the outbreak of the financial crisis. It has provided a rare day for the signing of the three countries' FTA. Coupled with the long-standing trade contacts between the three countries, the conditions for further cooperation between the system and the market have matured, and with the advent of the day, the advantages of the three countries have become more and more necessary and prominent.

Zhao Jinping, Vice Minister of Ministry of Foreign Economic Research of the State Council Development Research Center,

According to the calculation results, if the FTA between China, Japan and Korea can be shaped, the growth power of GDP will increase by 0.5% only for China, and domestic employment will rise by 0.96%~0.1%.

Li Yong, vice president of China International Trade Association,

The biggest advantage of FTA lies in reducing the trade cost between the signatory countries and facilitating trade and investment.

Therefore, its greatest effect is reflected in the creativity of trade and will generate more trade opportunities.

If China, Japan and South Korea successfully signed FTA, China's export growth rate may increase by 4.43%, and import growth rate will reach 6.32%.

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What is the impact on industry?

Influenced by the world economic situation, China

In the period of steady growth, South Korea's chemical fiber production is showing signs of atrophy, and Korean capital has gradually shifted from China to ASEAN and Vietnam, and the Japanese fiber industry will shift from domestic demand to relying on exports.

Wang Wenzheng, chairman of Qingdao Zhong Di Group Co., Ltd.:

Once China, Japan and Korea free trade zone can be realized, like many other traditional industries such as textiles, clothing and home textiles, there will be a lot of growth opportunities and business growth will be very large.

At the same time, all enterprises should compete on the same platform and at the same level. We need to learn from the experience of advanced enterprises in Japan and Korea to create new advantages for enterprises in international competition.

Shimomura Binchi, President of Japan Fiber Industry Association,

The three kingdoms are the world's largest fiber industry gathering place, undertaking the important task of supporting the sound development of the world's fiber industry and building a sustainable society.

At the same time, China, Japan and Korea are also the advanced countries of fiber and fashion in Asia and the world.

Asia is changing from the world factory to the world market, while China, Japan and Korea are the core of Asia.

What do textile enterprises expect?

The weaker industries in China are chemical and mechanical pport equipment, while the advantages of textile and clothing are obvious.

At present, the trend of cooperation between China, Japan and Korea has already become a trend. At the same time, when many textile enterprises are carrying a ride, how to consider the advantages and disadvantages of their respective industries to formulate specific agreements, so as to maximize their interests is a pressing matter of the moment.

Director General of Japan Fashion Fashion Association, Guang NEWU:

Asia is a "world factory" in the field of fiber fashion industry and is changing to the "world market".

By 2015, the clothing market share of three countries will be shoulder to shoulder with Europe and North America.

The textile fiber industry of three countries has a complete industrial chain. In the future, the industry's ability to create, develop materials and produce will be integrated to create the world's highest level of clothing.

Wang Wenzheng, chairman of Qingdao Zhong Di Group Co., Ltd.:

The company also realizes that the concept of China, Japan and Korea free trade zone can be realized, and it also means that enterprises in the future will have to compete on the same platform.

In my view, the current management mode of the company is obviously unable to compete with the advanced business models of Japan and Korea. This requires enterprises to build up new competitive advantages for themselves as soon as possible, so as to better survive after China's entry into the FTA.

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Reporter viewpoint

Although negotiations have not yet formally started, the establishment of China, Japan and Korea free trade area is the trend of the times, which is a great benefit to China's textile industry.

China, Japan and South Korea have a high degree of dependence on textile trade and are important trading partners.

China has obvious competitiveness in the field of processing and production. Japan and South Korea export high value-added products, occupy a competitive advantage in the industries with high capital and high technology, as well as in the design and marketing of high quality garments, and the quality and price of Korean processed fabrics and knitted fabrics have strong international competitiveness.

In recent years, with the continuous growth of textile trade in three countries, the association between trade organizations has become increasingly close.

Since 2010, China, Japan and Korea have held two textile industry cooperation meetings. China, Korea and Japan have worked closely together in environmental protection, textile technology and regional brand. They are committed to enhancing the influence and discourse power of the three countries in the world fashion industry.

At the same time, the three parties have already formulated the topic on FTA matters ahead of time, and discussed the feasibility and practicality of the tariff reduction, the rules of origin and other specific programs.

The abolition of tariffs will further enhance the competitive advantage of Chinese products, and will continue to increase exports to Japan and Korea.

But the challenge is also realistic. The channels for Japanese and Korean clothing brands to enter the Chinese market are more fluent, and the market competition is more intense. The pformation and upgrading of China's textile industry is more urgent.

Chen Dapeng, executive vice president of the China clothing association, is quite confident that "the market is not yours, nor is it mine. It is the real strength."