What Is The Impact Of The TPP Agreement On The Textile Industry In China And TPP Member Countries?

After several years of negotiations, 12 countries, including the United States, Japan and Australia, finally reached the concern of the p Pacific Strategic Economic Partnership Agreement on the 5 th of this month.

Agreement was reached.

What is the impact of this Agreement on China and its impact on TPP member countries?

Mei Xinyu, a researcher at the Ministry of Commerce and international trade and Economic Cooperation Research Institute, said that from the perspective of the current TPP outline, the macroeconomic stability of some developing members of TPP and the ability to maintain macroeconomic stability will be greatly damaged. They may not enjoy the benefits and benefits brought by TPP, but they will be faced with external shocks and fluctuations.

Among the provisions of the TPP, the most notable clause is "zero tariff" - the principle of TPP requires the cancellation of import duties on all goods when trade between Member States is required.

Manufacturing industry must grasp the high-end links

It is understood that Vietnam's market, for example, after the entry into force of the TPP agreement, Vietnam's products

The United States will enjoy zero tariff and competitive price, so Vietnam's export volume can be estimated to grow by about 32%.

Vietnam's largest export industry is

The clothing and footwear industry will enjoy a zero tax assessment, which will stimulate the export of textile industry and promote the entry of foreign direct investment.

For Quanzhou, which is also the production base of textile shoes and clothing, it will inevitably bring impact.

Mei Xin Yu believes that if TPP is put into operation, it will have a certain effect of trade pfer, and the impact on the total volume of trade depends on the chain reaction. If TPP leads to the disregard of the principles of the World Trade Organization (WTO) and the collectivization of regional economy, it may lead to the shrinking of Global trade.

Guo Rongna, general manager of the city's Clothing Co., Ltd., said: "taking the textile and garment industry of Shishi as an example, we have felt the competition from Southeast Asia in recent years."

Many customers who purchase fabrics in Shishi have set up garment production plants in Southeast Asia. These garment factories have taken part of the market share of some lion garment export enterprises.

According to the briefing, from now on, the textile and footwear industries in Vietnam, Malaysia and Thailand are developing rapidly, but more are staying in some simple garment processing links, and the high technology links such as surface accessories production, high-end printing and dyeing still rely on the Chinese market.

For example, some garment manufacturers in Thailand, such as T-shirts, underwear and so on, still need to send some more complex printing and dyeing processes to the coastal areas of China because the local technology level still can not meet the requirements.

"Therefore, the TPP agreement will affect the export of some low-end products from the present perspective."

Guo Rongna said.

But the competitive advantages of Vietnam, Malaysia and other countries in recent years are strengthening.

Whether it is equipment or technology, the pace of upgrading is very fast.

Chen Cangsong, Secretary General of the chamber of Commerce of Fujian textile and garment export base, said that due to low labor costs and adequate profits for enterprises, the pace of industrial upgrading in some Southeast Asian countries was very fast. From the recent inspection of Quanzhou textile and garment enterprises to Southeast Asia, some local shoes and clothing enterprises' production facilities were even more advanced than those of Quanzhou enterprises.

"Although there are several years of pition from the formal entry into force of the TPP agreement, Quanzhou will still be able to maintain its competitiveness for a period of time by relying on the perfect chain of textile footwear and apparel industry and the preemptive advantage in design and technology. However, the pressure is growing, and we need to constantly upgrade our product innovation capabilities and service capabilities to the high-end development of the manufacturing industry."

The pace of "going out" will accelerate

While constantly improving R & D, manufacturing processes and developing high-end manufacturing industry, going global competition is also an important channel for enterprises to effectively avoid trade and investment barriers made by TPP and other fragmented FTA.

For example, Vietnam successfully joined the TPP, Quanzhou brand enterprises can go to Vietnam to set up factories, and then export products can break through the blockade of TPP.

However, it should be noted that according to the TPP regulations, all processes and raw materials after the start of yarn should be carried out in TPP member countries before enjoying zero tariff treatment.

In recent years, more than 30 textile and garment enterprises have been investing in factories from Quanzhou to Southeast Asia. Last year, Quanzhou exported to ASEAN $451 million and $176 million in textile and textile machinery, up 33.1% and 21% respectively over the same period last year.

These enterprises, which first invested in Southeast Asia, have made profits both inside and outside the country, attracting more enterprises to explore and invest in Southeast Asia.

Guo Rongna said that only in Thailand, hundreds of Quanzhou enterprises have visited this year.

Quanzhou City Commerce Bureau official said that the TPP agreement may accelerate the pace of Quanzhou enterprises to invest in Vietnam, Malaysia and other places.

In fact, this capacity cooperation is to a certain extent the promotion of Quanzhou's industrial upgrading: first, the use of local labor resources to reduce labor costs; the two is to take advantage of local policies to reduce the operating costs of enterprises, in particular, to enjoy preferential policies such as exporting zero tariffs to the EU and exporting low tariffs to the United States; and three, promoting pformation and upgrading.

The labor-intensive production base of enterprises has been pferred to Southeast Asia. The headquarters have remained in Quanzhou to increase investment in new product design, research and development, marketing and other aspects, so as to accelerate the pformation and upgrading of enterprises.

Quanzhou Fengyi textile production base in Kampuchea has led to an export of US $about 40000000, and the pformation and upgrading of the company has been achieved successfully.

Reducing the impact of TPP by FTA agreements

"China is the second largest economy in the world, and competition and cooperation with the United States in the international market can not be avoided."

Quanzhou City Commerce Bureau official said that the subsequent landing of the agreement will definitely have a negative impact on Quanzhou's open economy. However, "for Quanzhou's industry, there is great opportunity for the global market, and there is no need to be discouraged."

"For example, compared with the first tier European teams in Germany, Britain and France, the economies of Spain, Greece and other countries are relatively backward, but they are stronger than those in Southeast Asian countries and regions. The local demand for traditional manufacturing in Quanzhou is also urgently needed for Quanzhou's production capacity and other resources replenishment."

The Quanzhou Municipal Bureau of Commerce said that no matter how the TPP agreement is specifically promoted, Quanzhou industry will seize the opportunity of "one belt and one road" strategy, scientifically pfer excess capacity and accelerate the pace of innovation and upgrading.

In fact, at present, the "one belt and one way" strategy of the country, the establishment of Shanghai, Guangdong, Tianjin, Fujian free trade area and the free trade area agreement signed with other countries (FTA) are all aimed at strengthening cooperation with neighboring countries and regions, as well as meeting the challenges brought by TPP cooperation.

Professor Chen Bo, deputy director of the world economic and Trade Department of Shanghai University of Finance and Economics, said.

Mei Xin Yu said that at present, China's position on TPP is "open minded", but it also has principles. First of all, TPP should not violate the basic rules of WTO.

Second, TPP should not conflict with other economic integration organizations in the region, and should complement each other.

It is understood that Australia in the TPP Member States signed the FTA agreement with China in June this year.

After the pition period, goods between China and Australia are close to 100% zero tariff.

In this way, the negative effect of TPP on China and Australia is offset by the FTA of China and Australia.

At present, among the 12 TPP countries, 5 countries have reached FTA with China, including Australia, New Zealand, Chile, Peru and Singapore, accounting for almost half of the TPP countries.

Although Brunei and Malaysia have not signed FTA directly with China, ASEAN has signed FTA with China.

In addition, China, Japan and South Korea FTA and China Canada FTA are also negotiating.

In short, even if the TPP agreement is formally implemented, the impact on global industry chain may not appear in the short term because the tariff has been gradually reduced to zero for many years, but after 10 years or even longer, it will lead to major changes in the global industrial chain.

China's textile enterprises can take advantage of this time to make full use of the industrial layout and deal with the new trade rules from the following aspects, turning the danger into a machine: (1) enhancing the layout of overseas production capacity, such as further pferring capacity to Vietnam, building factories and exporting in Vietnam, can break through the blockade of TPP and enhance the global competitiveness of enterprises.

(2) forcing ourselves to further deepen reform, enhance innovation capability, enrich our supply chain system, and achieve pformation and upgrading of enterprises.

(3) China will create its own small trade freedom circle through similar "China Korea Free Trade Agreement", and will further increase in the future. This undoubtedly creates more trade opportunities for China's textile enterprises.