What Are The Benefits To The Development Of China'S Textile Industry After RCEP Takes Effect

From the changes of the global textile industry, we can see that political relations, scientific and technological development and labor costs have played a very important role in the transfer of the industry.

In recent years, the pace of textile industry transfer has obviously accelerated, and the scientific and technological barriers of the textile industry are getting lower and lower. It is increasingly difficult for a country or region to maintain its long-term leading position in the textile industry. The role of technological barriers is weakening, while the role of cost and geopolitics is increasing.

Although China's textile and clothing exports are now the world's well deserved leader, we can see that the peak around 2015 has already emerged. In 2020, due to the epidemic, China will regain some market share. However, based on the consideration of human cost, the direction of the transfer of the textile and clothing supply chain in Europe and the United States will not change, and the textile industry "flying southeast" is still a long-term trend.

The Sino US trade war began in 2018, and the pace of globalization slowed down. In addition to the suppression of China's high-tech industries, the United States has increased tariffs on Chinese products and restricted exports, of which textiles and clothing have become a key "care" industry, forcing China's textile industry to open up new markets. This is also one of the important reasons why China has made great efforts to promote RCEP.

After the RCEP agreement comes into force, the tariffs of China's textiles and clothing on Japan and South Korea will be significantly reduced, which will first squeeze Vietnam's markets in both places. Vietnam's textile industry has developed rapidly in the past decade. First, it took advantage of labor cost to undertake the industrial transfer from China. Subsequently, it actively explored the markets of Europe, America, Japan and South Korea, and competed with China. After the Sino US trade war, the probability of US textile and clothing orders continuing to tilt to Vietnam increased.

The largest consumer market of textiles and clothing in the world is still the traditional developed countries such as Europe and the United States. The tariff reduction and zero clearing in the RCEP region are just a re division of the "stock market" cake.

If the trade agreement between RCEP member countries can promote the further promotion and development of the regional economy and the further optimization of the industrial chain, it will undoubtedly bring new growth to the textile industry. RCEP will bring us not only "internal volume", but also win-win cooperation.