The segment’s development on a global scale, the increments in both imports and exports, cooperation and foreign investments. China’s leather segment takes comfort in the opportunities emerged from RCEP. Because while in the West USA and EU break bread once again, Beijing becomes marginalized. Thus, the People’s Republic is turning to the Eastern world. RCEP (Regional Comprehensive Economic Partnership) is the collaboration program that includes 15 countries of the Asia-Pacific region. According to CLIA’s representatives, Chinese tanning association, the advantages for the leather segment have to do with the ease with which shipments are sent and received. And more: the prices of raw materials. At the same time though, CLIA believes that such conditions may increase competition among the member countries.
RCEP’s advantages
As reported by leatherbiz.com, CLIA published a report that analyzes the benefits of the collaboration for China’s leather segment. There are three key ones: development on a global scale, increments in both imports and exports, cooperation and foreign investments. 15 Asia-Pacific countries expect such benefits that they aim at becoming “the global and most competitive center for the leather and footwear segments, in terms of both manufacturing and consumption”. The agreement should lead to the increase of leather imports by China and Vietnam, while finished materials should go towards Japan and South Korea. This commercial agreements, according to the report, will easy trade, and at the same time push manufacturers to increased cooperation. The reduction of costs will also push demand.
Challenges
CLIA though also identified some concerning points. Most of all the increased competition on local markets for all countries involved. This will be mainly due to the shared reduction of prices. Mr. Chen, general secretary of CLIA, proposed to created a technology update index for the segment, which will help these businesses on the global marketplace as well.
Read also:
