China South Korea FTA Initition Agreement Dongguan Garment Industry New Opportunities

The website of the Ministry of Commerce announced on February 25th that China and ROK have completed the initials of all the texts of the FTA and confirmed the contents of the agreement.

The scope covers the goods.

17 areas, including service trade, investment and rules, including e-commerce, competition policy, government procurement, environment and so on.

The Sino Korean FTA negotiations were launched in May 2012. It is said that China has so far talked about the most widely covered trade zone with the largest volume of trade.

After the announcement, it attracted the attention of various industries in China.

As a veteran of Dongguan's clothing industry and exports, Chen Yaohua is also concerned about the new trend of the economy.

He said that the important export markets of Dongguan's textile and clothing were mainly in Europe and the United States, and that there was a certain scale of export to South Korea. Textile and garment enterprises in Changping and Dalang exported to Korea. Zero tariffs would enhance the competitiveness of the original products.

Docking South Korea textile machinery and equipment

There are public reports that the largest foreign investment destination in Korea is China, which accounts for 26% of all exports to China, while South Korea is China's third largest export market.

In 2013, for example, the amount of textiles and clothing exported to China increased by 16.6% over the same period last year.

Exports amounted to US $3 billion 950 million.

China's electromechanical products, metal products and agricultural products (000061, stock bar) are placed high hopes.

"Korea

In the past, Zengcheng and Dongguan were often brought to the factory for processing and production, and then they gradually moved to Shandong.

Dongguan textile and Garment Association Secretary-General Baiyun told reporters that the export of Korean clothing enterprises in Shandong, Jiangsu and Zhejiang, Dongguan textile and clothing or Europe and the United States as the main export market.

He believes that the Korean textile and clothing and other light industry is relatively developed, zero tariff is just a good thing, exports still need to build competitive advantage from the product itself.

However, Chen Yaohua also valued another opportunity for Dongguan's textile, clothing and electronics industries after the launch of the China South Korea free trade zone.

It has advantages in research and development, and its textile fabrics are doing well. We can consider importing their equipment in the future.