Ways For Zhejiang Enterprises To Deal With TPP Challenges

Because the industrial chains in other countries are not as developed as China. Raw material It also needs to be imported from China, so for the time being, it has little impact on Zhejiang enterprises. But with the gradual deepening of TPP, this impact will be deepened, so Zhejiang enterprises should make preparations ahead of schedule to deal with this challenge.

"In the short term, the most important impact of TPP on Zhejiang is foreign trade and investment, which has little impact on imports. Because of the zero tariff imposed by TPP among member countries, many multinational companies in Zhejiang may be transferred, and local private enterprises may also shift. They set factories in Vietnam and other countries, not only cheap labor force, but also zero tariff to export to the United States. In view of the impact of TPP on the open economy of Zhejiang Province, Zhang Handong, President of Zhejiang Business Research Institute, said.

In October 5th, the dust of the trans Pacific Strategic Economic Partnership Agreement (TPP), which lasted for 5 years, was settled, and the ministers of 12 member states announced a basic agreement in Atlanta. After the approval of Member States' Congress, the agreement will create a maximum free trade area covering 40% of the global economy in the Asia Pacific region. The news immediately aroused widespread concern, and its impact on China's economic development has also become the focus of attention.

As a major province of China's economy, Zhejiang's total trade volume between Zhejiang and TPP12 was 120 billion US dollars in 2014, accounting for 33.8% of the total foreign trade volume of Zhejiang Province, of which 89 billion 60 million US dollars were exported, accounting for 32% of the total exports of Zhejiang, and 1 billion 60 million US dollars in foreign capital, accounting for 6.7% of Zhejiang's total. Such a high proportion of data makes people worry about whether TPP brings opportunities to Zhejiang's open economy, or is it more of a challenge?

Wu Zhifeng, chairman of Ningbo International Trade Co., Ltd., expressed confidence in this: "because other countries' industrial chains are not as developed as China, such as Vietnam, many raw materials need to be imported from China, so for the time being, it has little impact on our enterprises. But this effect will certainly be deepened in the future, so our enterprises will prepare ahead of schedule to deal with this challenge. "

The TPP member states include both Zhejiang's major export destination countries, such as the United States, and the countries that compete with Zhejiang's homogeneous products, such as Vietnam. This substitution will make Zhejiang province. clothing Furniture, footwear Exports of products such as mattresses and bedding to the United States and other countries have been transferred to Vietnam, Malaysia and other places. In addition, TPP implements rules of origin in the member countries, that is, the use of raw materials from non TPP member countries and the final products produced by intermediate products are limited in the enjoyment of TPP tariff preferences. Therefore, the TPP member countries' demand for raw materials and intermediate products in Zhejiang can be transferred. "But in the long run, many standards in TPP, such as labor standards, have also emphasized the need to safeguard workers' interests. Although we are unable to meet the requirements of TPP, we may be forced to reform in the opposite direction, promote reform through opening up, promote development by opening up, and promote exports by opening up. Zhang Handong said.

In addition, the Zhejiang provincial chamber of Commerce said that another important issue in TPP negotiations is intellectual property protection. At present, many enterprises in Zhejiang province attach great importance to R & D and design investment, but the protection of intellectual property rights in China is small, and the cost of infringement and counterfeiting is low, which weakens the enthusiasm of enterprise innovation. With the success of the TPP negotiations, China will further intensify its efforts to protect intellectual property rights and promote the enthusiasm of technological innovation.

In response to the challenges posed by TPP, Zhejiang also has its own countermeasures. First of all, we must implement the strategy of going out and jump out of Zhejiang to develop Zhejiang. As Zhang Handong said, Zhejiang private enterprises can invest and build factories in Vietnam, Malaysia and other countries. Transnational operation and deep development of the international market is a strategic need for Zhejiang's economic development and an important measure to deal with TPP.

Actively guiding enterprises to use FTA to develop foreign trade and investment is also an effective way to deal with it. At present, TPP, Singapore, Vietnam and Malaysia have FTA relations with China under the framework of the China ASEAN Free Trade Area. Australia, New Zealand, Peru and Chile have bilateral FTA agreements with China. Although these agreements are lower than TPP, it is very useful for enterprises in Zhejiang to expand bilateral economic and trade cooperation with bilateral and multilateral agreements. Therefore, increasing the publicity and training of these FTA agreements can help Zhejiang enterprises to make better use of the rules of the FTA to open up the market and lay the foundation for adapting to the higher international trade rules such as TPP.

According to the relevant personage, at present, the relationship between China and TPP will be sacrificed to suit the rules at the expense of interests. If it does not join, it may be marginalized. At the same time, the government has also responded to the impact of TPP on China's economic development by promoting the construction of "one belt and one road" and speeding up the development of free trade zones. In addition, there is still a period of time for the TPP agreement to reach a real impact. Zhejiang should seize this transitional period, respond positively, take various measures to reduce the impact, transform the pressure of TPP into the driving force for reform and development, accelerate the cultivation of new advantages in foreign trade, and integrate the high level with the large-scale outward bound to truly enhance the compressive capacity of foreign trade and create an upgraded version of Zhejiang's foreign trade.