How Can China'S Textile And Garment Industry Quickly Integrate Into "Double Cycle" By RCEP?

The textile and garment industry is the first business card of made in China to the world. China has the most complete modern textile manufacturing and service system in the world. Since 1994, China's total production and export of textiles and clothing has ranked first in the world. However, affected by the impact of the epidemic, Sino US trade friction, rising production costs and other factors, China's textile and garment manufacturing industry is obviously under pressure, and has entered a cycle of slowing down the total growth and deep adjustment and transformation.

Facing many challenges, in addition to industrial upgrading, "going out" to layout the global market is also the only way to promote China's textile and garment enterprises to achieve "both internal and external repair". In recent years, some Chinese enterprises have successively invested in the construction of a number of spinning and garment processing production bases in Southeast Asian countries, and formed a supporting cooperative relationship with domestic upstream and downstream enterprises in the industrial chain. "China + Southeast Asia" has gradually become a new international layout model for China's textile and garment enterprises.

However, many Chinese textile and garment enterprises are facing the challenge of imperfect industrial chain while enjoying the cost dividend of investment in Southeast Asia. At the same time, the adjustment of tariff and trade policies of garment importing countries also brings uncertainty to the investment of China's textile industry in Southeast Asia.

Since the outbreak of the epidemic, due to the impact of negative factors such as blocked import of garment raw materials and slowing down of international market demand, many Chinese funded garment processing factories in Southeast Asia have reduced their orders and revenue. In order to save costs, a large number of enterprises are forced to shut down or shut down. How to maintain the stability and smoothness of regional industrial chain and supply chain is a difficult problem for Asian textile powers to deal with.

In November 2020, the regional comprehensive partnership agreement (RCEP) including China and ASEAN was officially signed. After the signing of RCEP, how will the relevant rules help Asian textile powers optimize the layout of supply chain and industrial chain, and what opportunities will they bring to Southeast Asian garment processing factories? Under the impact of epidemic situation, how can Chinese textile and garment enterprises integrate into the new development pattern of "double cycle" as soon as possible with the help of RCEP?