Himfr.com Reports Asean Is Now China's Textile Exports Opportunity

January 1, 2010, China and the ASEAN 10-nation free trade zone started. To benefit from China – ASEAN Free Trade Area of the formal operation in January this year, the ASEAN surpassed Japan to become China’s third largest trading partner, bilateral trade value reached 21.48 billion U.S. dollars, an increase of 80%.

China and the ASEAN Free Trade Area is established, the major countries of ASEAN imports of textile products from China, the overall tax rate is significantly lower, and further enhance the export of Chinese textile products more competitive. Customs analysts, the ASEAN market is gradually becoming a new growth of Chinese textile exports point, China’s textile industry is facing major development opportunities.

There are business opportunities after the crisis

Textile and apparel from the current market structure, China’s textile and apparel exports are still dependent on the United States, the European Union and Japan, and other major markets. In January of this year, Tianjin Port textile exports to the EU amounted to 140 million U.S. dollars, exports to the United States 080 million U.S. dollars, exports to Japan and 060 million U.S. dollars, the three together accounted for the same period in Tianjin Port 45.2% of the total value of textile exports. However, in 2009, by the global financial crisis, European and American markets gradually reduce the number of orders, making China’s textile export volume, price of Qi down. Meanwhile, China’s textile-exporting countries also contributed to the high concentration of major markets become increasingly saturated. Reduce the dependence on the European and American markets and expand in emerging market share has become a trend.

Market analysts believe that China and the ASEAN Free Trade Area, ASEAN will accelerate the pace of economic recovery, and he gradually from the financial crisis, which will also lead the region’s increase in consumer demand for textile products and ultimately benefit China’s ASEAN’s share of the expansion of textile exports, which will help China’s textile industry in 2010 to better implement the “textile industry restructuring and revitalization of planning” in the implementation of the strategic policy of diversification of export markets.

Association of Southeast Asian Nations ASEAN market potential in the textile market has a huge consumption potential, as in the

State – The completion of the ASEAN Free Trade Area, China and ASEAN will have 7,000 more than the product Jiucheng trade tariffs to zero. China – ASEAN Free Trade Area, which include the world’s 1 / 3 of the population, contribution to the world’s 1 / 9 of the GDP, trade volume of up to 4.5 trillion economy will become the following after the European Union and the North American Free Trade Area of the world the three major free trade zone.

Meanwhile, since the second half in 2009, the ASEAN economy began to slow recovery in most countries, and development continues to improve in 2010, thus becoming the support of China’s textile export growth in the ASEAN an important economic base. According to published data, Indonesia as the ASEAN, the largest economy in 2009 the gross domestic product growth of 4.5%, economic growth, good; Vietnam in 2009 GDP growth 5.32%, exceeding growth target of 5% ; Thailand’s gross domestic product fell 2.3 percent, better than expected 2.8% drop. According to the Asian Development Bank forecast in 2009, ASEAN’s economy will grow 0.7% in 2010, the region’s economy is expected to resume until 2008, 4% growth rate.

In addition, the ASEAN market more developed countries, fewer trade barriers, market access, low threshold. As China and the ASEAN countries, some differences in structure of the textile trade, China’s textile exports, mainly garments and other exports of manufactured goods to Europe, America and other areas of consumer goods, while the textile trade with the ASEAN countries a small number of manufactured exports such as apparel, , and more concentrated in the yarn, cotton, chemical fiber fabrics such as the export of semi-finished products, so the textile trade between ASEAN and China, there are complementary, and the establishment of a free trade zone to both sides in the textile field of deeper cooperation.

In addition, the completion of a free trade zone in promoting cross-border trade, RMB settlement of great significance, it will greatly speed up cross-border trade, the pace of the RMB settlement of the pilot and ultimately conducive to China’s textile industry to avoid exchange rate risks, lower operating costs. Hangzhou, a clothing company who told reporters: “business can be settled in RMB, eliminating a lot of trouble, and more effort. With the European and American markets is different from the ASEAN region a more stable exchange rates, some countries can be settled in RMB, so to to effectively reduce the scale of exchange rate risk, can increase the profitability level. ”

There are risks need to be cautious

The establishment of the Free Trade Area has brought tremendous opportunities for Chinese textile enterprises, while a number of risks still need to carefully guard against. For example, the Vietnamese central bank has announced since the February 11, 2010 VND devaluation of 3.4% again, this is the second in November 2009 VND devaluation of 5.4% in the second devaluation. VND devaluation weakened the one hand, Vietnam’s textile exports of China’s price competitiveness, it also exacerbated the Japanese developed markets in Europe and America in Vietnam with China on product competition.

In addition, since Chinese enterprises “going out” a late start, lack of experience overseas investment, with cross-border management experience related to the shortage of talent, short term investment in the ASEAN market is still more difficult. Some ASEAN countries, the textile industry chain, supporting the lack of advantages, the low intensity of infrastructure remain to be perfect, will increase China’s textile enterprises to invest in cost. Moreover, some countries of ASEAN political and security pitfalls and wary of China, the same constraint on China’s textile industry will become an important factor in the layout of the Association of Southeast Asian Nations.