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    China South Korea FTA: Export Situation Will Turn Losses Into Profits?

    2015/6/6 15:48:00 35

    Sino Korean FTATextilesForeign Trade

    It is reported that the South Korean government predicts that after the entry of FTA into China, the gross domestic product (GDP) of the Republic of Korea will grow by 0.96% over the next 10 years, and the scale of consumer benefit will reach US $14 billion 600 million.

    Is this equivalent to the growth scale of Chinese goods in the Korean market after tax exemption? How much can textile and clothing occupy?

    Insiders said: "China's textile and clothing exports to South Korea will grow, but can there be a huge increase? I don't think so. Only the implementation of the free trade agreement will slow down the decline of China's exports, or increase the export data slightly, but it will not reverse the overall decline of China's exports.

    There are two reasons.

    First, the market capacity of Korea is limited.

    Although Korea has great potential for consumption, its population is about about 50000000.

    South Korea's yarn, fabric and clothing industry are very developed. It is not easy for Chinese goods to locate accurately in the country's market.

    Two, China's export of textiles and clothing has a high market share in South Korea, with limited space to upgrade.

    Around 2007, China's textile and clothing accounted for about 80% of the total imports of textiles and clothing in South Korea.

    This data should have dropped in recent years, because many Korean clothing companies set up factories in China at that time, and the garments they sold in China and returned to Korea were also counted.

    Industry experts also said that instead of looking forward to China's textile and clothing

    Exit

    Compared with the substantial growth, it is better to try to realize the cooperation and integration between China and South Korea's textile industry.

    "For example, there are many problems in China's printing and dyeing enterprises, and the printing and dyeing industry in Korea is relatively good. If Chinese clothing enterprises can cooperate with Korean enterprises in this area and move the printing and dyeing links to Korea, they will solve many problems."

    In addition, he said that whether the consumption power of South Korea or the high production cost of China should be considered, Chinese clothing enterprises should also enter the high-end market of Korea.

    At present, the purchasing industry is blooming all over the world. In fact, most Chinese consumers start buying clothes from Korea first.

    The exquisite design of Korean costumes is very popular among Chinese female consumers. As long as Han dresses were not stationed in China, Korean clothing, including small batch of clothing retailers and buyers, began selling Korean apparel. However, the higher price prohibits consumers.

    People can't accept that buying a dress at a store costs the same price as a shopping mall.

    With the purchase of derivatives, Chinese consumers know a famous clothing procurement location in Seoul, South Korea - the east gate.

    Apart from brand clothing, Korean garments are no longer myths, but are synonymous with good quality and low price.

    However, purchasing is not the best choice.

    Clothing expenses

    Consumers also have to pay a purchase fee. Besides, consumers are very dependent on buyers' eyes and need to wait for days to get them.

    Chinese consumers have long been eager to know the latest trend of Korean clothing without going to Korea or buying them.

    Industry professionals said

    China South Korea Free Trade Agreement

    After the formal implementation, the bilateral trade of Chinese and Korean textiles and clothing will increase from quantity and quality, and the mode of trade will also be more diversified.

    Both China and South Korea have strong comparative advantages in textile and clothing trade, and how much of the final trade volume will change.

    "The formal implementation of the China South Korea free trade agreement will take at least 3~5 months, and both governments need time to process relevant procedures within the agreement.

    Since the official text has not yet come out, it is not easy to say how the bilateral trade will change.

    But judging from the current data, Korean fashion, especially teenage clothing, will develop rapidly in the future.

    However, the two countries should not achieve 100% zero tariff on textile and clothing, if this will cause Chinese clothing enterprises to be affected.

    Insiders analyzed this way.


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