NANNING, CHINA – Media OutReach Newswire – January 12, 2024 – With the lifting of customs clearance barriers, 6 tons of mixed yarn were imported duty-free into China via Dongxing, a border city in Guangxi Zhuang Autonomous Region, in southern China.
The yarn was produced in a Vietnamese production line of cotton yarn production giant Texhong International Group Limited and will later be processed to produce fabrics in China.
Chen Yingjian, commercial director of the company in charge of importing goods in Dongxing, said the company has benefited from preferential tariff policies under the China-ASEAN Free Trade Agreement (CAFTA) implemented in 2010 , while the Regional Comprehensive Economic Partnership (RCEP) has further reduced their customs costs.
Among all the goods for which the company declared customs duties to Dongxing Customs, the value of those which received tax breaks amounted to 2.5 million US dollars in the first eight months this year, according to Chen.
Connected by land and sea, China and the Association of Southeast Asian Nations (ASEAN) have enjoyed an ever-increasing trade relationship over the years, with CAFTA and RCEP helping to reduce costs trade and stimulate the construction of the supply chain between China and ASEAN.
The RCEP is made up of 15 members: the 10 ASEAN member states, China, Japan, the Republic of Korea, Australia and New Zealand. The RCEP was signed in November 2020 and entered into force on January 1, 2022, with the aim of gradually eliminating customs duties on more than 90% of goods traded between its members.
Official data shows that the bilateral trade volume between China and ASEAN increased from about 100 billion US dollars in 2004 to 975.34 billion US dollars in 2022. China is the largest trading partner of the ASEAN for 14 consecutive years, while ASEAN is China’s largest trading partner. for three consecutive years.
As of July, bilateral investments exceeded US$380 billion, while more than 6,500 enterprises benefiting from Chinese direct investment had been established in ASEAN.
The China-ASEAN Expo (CAEXPO), a key platform to promote and facilitate the movement of goods between China and ASEAN, has seen Vietnamese durian, Thai mangosteen and Indonesian coffee become sought-after products by Chinese consumers over the past 20 years.
Benjamas Tanvetyanont, Consul General of Thailand in Nanning, regional capital of Guangxi, said the CAEXPO provides a huge boost to the construction of CAFTA and the implementation of RCEP, expanding the regional economic cooperation space and giving a great boost to regional prosperity and stability.
“As the dividends of RCEP continue to emerge, the construction of the China-ASEAN Free Trade Area is progressing, which will consolidate the roles of China and ASEAN as the largest trading partner one of the other,” said Chinese Vice Minister of Commerce Li Fei. .
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