INSIGHTS | China Joins RCEP. Furniture Export May User in a New Peak

The signing of the Regional Comprehensive Economic Partnership marks the official start of a free trade zone with the largest population in the world, the most diverse member structure and the greatest development potential in history.

The various trade protection brought by RCEP among the 15 countries is a cardiotonic, will boost many industries such as light industry, building materials, textiles and clothing, and e-commerce. For the domestic home furnishing industry, the export market may stage a new rising.

Regional Comprehensive Economic Partnership的签署，标志着史上覆盖世界人口最多，成员结构最多元，发展潜力最大的自由贸易区正式启航。15国RCEP的种种贸易保护光环，像强心剂一般，给轻工、建材、纺织服装、电子商务等多个行业带来爆炸性曙光。对国内家居行业而言，出口市场或将上演一轮上涨新“高峰”。

 

Enterprises with a High Proportion of Exports will be the First to Benefit

In fact, the pan-Asian market, which has a high degree of overlap with the signatory countries, is a very large consumer market for household products.

Data shows that in 2019, furniture consumption in the Asia-Pacific region (including China, Japan, South Korea, Southeast Asia, Australia, New Zealand, etc.) was US$20.2 billion, accounting for 42% of the global furniture industry consumption. Among them, Japan and South Korea rely heavily on imported furniture.

As a major home production and furniture exporting country, China provides consumers in the Asia-Pacific market with a wealth of home furnishing products.

出口占比高的企业将率先受益

事实上，在和签订国区域重合度很高的泛亚太市场正是一个非常大的家居产品消费市场。数据显示，2019年亚太地区(含中国、日本、韩国、东南亚、澳大利亚、新西兰等)家具消费额为2020亿美元，占全球家具行业消费额的42%，其中日本、韩国对进口家具依赖度大。而作为家居生产大国的中国，也一直扮演着家具出口大国的角色，为亚太市场消费者提供丰富的家居产品。

As the RCEP starts to operate, Chinese export volume on Home Furnishings in these areas is expected to take a higher level. One of the most important aspects of RCEP cooperation is that the overall openness in trade in goods reaches more than 90%, and tariff reductions among members are based on the commitment to reduce to zero tariffs immediately and within ten years.

Previously, ASEAN, Japan, South Korea, and New Zealand imposed tariffs on domestic household exports between 3% and 5%. After the RCEP is signed, this part of the tax point may be gradually reduced or even “zero tariff.”

In recent years, domestic companies increase their investment in environmental protection, the cost of various energy sources and labor have risen, which means export costs become higher. If the signing of RCEP can save 3% to 5% tariffs, it will definitely help improve corporate profits and promote a new peak in exports.

当RCEP开始运行之后，中国家居在这些区域的出口数据将有望“更上一层楼”。毕竟，RCEP合作的一个最重要内容，就是货物贸易方面整个开放水平达到90%以上，各成员之间关税减让以立即降至零关税、十年内降至零关税的承诺为主。而此前东盟、日韩、新澳对国内家居出口征收关税在3%~5%，RCEP签署后，这部分税点就有可能逐步减少甚至“零关税”。近几年，随着企业加大对环保的投入，加之各种能源、人工费等成本上涨，导致我国出口产品的成本越来越高。若此时，RCEP能节约3%~5%的关税，必将有助于企业盈利情况的改善，进而推动出口新高峰的诞生。

 

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