Let’s learn more about the benefits of RCEP this time

After India withdrawal RCEP, China may benefit from the textile industry

On November 15, the fourth Regional Comprehensive Economic Partnership (RCEP) Agreement Summit was successfully held. Among the 15 countries that jointly signed the RCEP agreement, India, one of the founding countries, withdrawal from it. The Indian spokesperson state that, there are important issues that have not been resolved, so it is temporarily not considering joining.

Based on mutual benefit, some textile order factories in India may lose orders from the agreed countries. However, it is worthy of recognition that through this agreement, there will be more overseas in the future. Textile orders flow to factories in China.

Freight will increase substantially with ten years of duty-free and simplified customs clearance

In terms of customs procedures and trade facilitation, RCEP simplifies customs clearance procedures, adopts efficient management methods such as advance rulings, pre-arrival processing, and information technology applications, and strives to achieve as much as possible for express goods and perishable goods within 6 hours of arrival. The release will promote the rapid customs clearance of fresh products such as fruits and vegetables, meat, eggs, and dairy products, and the overall level will exceed the WTO’s Trade Facilitation Agreement.

Exports will have a brilliant performance: Operating costs are going to reducing  for each country next year

No matter from the angle of industry or the global situation, the achievement of RCEP will promote the development of Chinese import and export trade and cross-border e-commerce. First of all, All RCEP members are Chinese important economic and trade partners. And China, as the economy with the strongest production capacity, has the most complete industrial chain and the largest export scale in the free trade zone will benefit from it. Affected by the epidemic, overseas demand has driven the growth of China’s export this year. The superiority of the cancellation of tariffs and other barriers will bring a brighter future.

Taking garment production as an example, wool produced in Australia can enter China duty-free, and then be woven into fabrics in China and exported to Thailand to make garments duty-free. Through the tariff advantages of the agreement, the cost of garment production and transportation is greatly reduced.

It is undeniable that the birth of the world’s largest free trade zone, the Chinese market, and Chinese power must be the biggest highlight. According to the rules of the free trade zone, 90% of the goods in the free trade zone may have zero tariffs, and the coverage of the population has reached one-third of the world. In the future, the influence of the Chinese economy will increase, which is why you should choose China as a business country.

Located in the Greater Bay Area of China, HiGlobal creates opportunities and value for you. HiGlobal helps you in product sourcing, price negotiation, factory audit, QC, legal support, and after service. Making you more resilient in the global value chain and protect your business and family from beginning to end is what we are doing. Get in touch with us to start a profitable business NOW!