Enterprises in the Greater Bay Area are facing the new situation of RCEP competition, and "Haitao" is looking forward to reducing taxes and red envelopes

21st Century Business Herald reporter Wu Wenxi Guangzhou reported that the RCEP officially came into effect, which is one of the most noteworthy major events at the beginning of 2022. For enterprises carrying out foreign trade business of RCEP member countries in the Guangdong-Hong Kong-Macao Greater Bay Area, on the one hand, RCEP's tariff concessions and rules of origin accumulation rules bring "going to sea" benefits to bay area enterprises and attract more foreign investment into the Greater Bay Area; on the other hand, the entry into force of RCEP means a more open and fierce competition situation, how to continue to advantage and open up the market is a problem faced by bay area enterprises.

"Under the implementation of RCEP, enterprises will face a more competitive market environment, which is more pressure and motivation for enterprises and individuals, and only by continuously improving their comprehensive competitiveness can they survive in the fierce competition." Chen Na, deputy general manager of cross-border e-commerce of Guangdong Yinghao Craft Products Co., Ltd. (hereinafter referred to as "Yinghao Process"), said in an interview with the 21st Century Business Herald reporter.

For consumers, RCEP means more choice, lower prices and faster logistics, and the RCEP is full of expectations.

"With the implementation of RCEP, consumers can enjoy a more preferential and convenient sea Amoy experience, the choice of goods will be more abundant, the tariff and logistics prices for the purchase of imported luxury goods have been very high, and now that RCEP has taken effect, my friends and I have been paying attention to the trend of the Sea Amoy website." "Senior" Haitao user Fu Xin (pseudonym) told the 21st Century Business Herald reporter.

Opportunities and challenges coexist for enterprises

The Guangdong-Hong Kong-Macao Greater Bay Area is located in the core area of RCEP and has always had close economic and trade exchanges with other RCEP members.

The data shows that from January to November 2021, Guangdong's total foreign trade import and export volume was 7.47 trillion yuan, an increase of 17.4% year-on-year, and an average growth of 7.8% in two years. Among them, exports were 4.57 trillion yuan, an increase of 17.4% year-on-year, an average growth of 8.2% in two years; imports were 2.90 trillion yuan, an increase of 17.4% year-on-year, and an average growth of 7.0% in two years. Guangdong's imports and exports to ASEAN amounted to 1.11 trillion yuan, an increase of 14.8%.

Chen Wanling, professor at Guangdong University of Foreign Studies and director of the International Economic and Trade Center, said in an interview with the 21st Century Business Herald that the Greater Bay Area was developed through processing trade earlier and was a region for product exports. The effectiveness of the RCEP will help enhance the core position of the Greater Bay Area in the industrial chain, and the transit and hub positioning of the Greater Bay Area in the entire East Asian economic circle will be more prominent.

Chen Haiheng, executive deputy general manager of Yinghao Technology, told the 21st Century Business Herald that in the past, foreign trade enterprises in the Bay Area mainly focused on developed countries in Europe and the United States, and the world's largest free trade zone was formed under the RCEP agreement, allowing enterprises to see the big market in front of them. "Foreign trade enterprises have done RCEP in this area, one is to expand the market, and the other is to reduce the dependence on the European and American markets." If the government can provide a RCEP regional relevant industry trade big data survey report, it can guide enterprises to develop the market in a targeted manner. ”

Shenzhen-based Zongteng Network Co., Ltd. is mainly engaged in overseas warehousing, cross-border logistics and other businesses, according to Li Cong, vice president of Zongteng Network, the company began to lay out the Southeast Asian market from the beginning of 2021. He said that the Southeast Asian market transportation facilities are insufficient, while enterprises face labor costs and environmental protection and other issues, the implementation of RCEP will provide enterprises to expand into emerging markets to provide more flexible and broader space. "These emerging markets of RCEP members are the key direction of the future layout of enterprises in the Bay Area, which can form a good complement with the European and American markets, although the current market is not large, but the prospects are considerable."

However, there is not only expectation and joy for the RCEP to take effect, but also for the upcoming more open and full competitive environment, many companies are not ready.

Chen Wanling believes that many enterprises with weak consciousness cannot make good use of the opportunities brought by RCEP, do not have the initiative to prepare, complete the preemptive layout, or follow the old routine of the past, and may face elimination under RCEP. At the same time, bay area enterprises have to face competition with enterprises in developed countries, and how to occupy the advantage is also one of the challenges.

In addition, Lu Zhong, the relevant person in charge of Guangzhou Junchong Trading Co., Ltd., said in an interview with the 21st Century Business Herald reporter that for some enterprises, the reduction of tariffs is likely to mean that they need to reduce prices for final customers, and enterprises with weak bargaining power and lack of competitiveness will be difficult to survive in competition.

Consumers welcome the sea to the benefits

Fu Xin is a "regular customer" of major overseas shopping websites, European and American luxury goods, Japanese cosmeceuticals, and Korean tide brands have always been the "main force" in her shopping cart, and sometimes choose to buy some Southeast Asian fruits.

On the day RCEP came into effect, tariffs on a large number of products were immediately reduced to zero. It is understood that the proportion of immediate zero tariffs between China and ASEAN, Australia and New Zealand exceeds 65%, the proportion of immediate zero tariffs with South Korea reaches 39% and 50%, and the proportion of immediate zero tariffs with Japan reaches 25% and 57% respectively.

From the analysis point of view, imported machinery and appliances, plastic products, motors and electrical equipment, as well as exports of textiles, bags, plastic products and other tariffs have fallen the most; traditional high-tax industries are obviously affected, such as food, agriculture, consumer goods and automobiles and parts, which are the products that consumers are keen to buy.

Taking Japan as an example, in 2022, 24.9% of China's products will be open to Japan with zero tariffs, and 55.5% of Japan's products will be open to China with zero tariffs. In the category of seafood products, the MFN tariff rate for Japanese oysters, scallops, sea urchins and other products in 2021 will be 7%-10%, which will be reduced to 0% in 10 years, while the tariff on sea cucumber (boiled) will be reduced to zero on the day of entry into force. Japan sake's MFN tariff rate of 40% in 2021 will be reduced to zero in the 21st year. The tariffs on Japanese daily chemical products and home appliances, which are popular with domestic consumers, will also be gradually reduced within 10 years, achieving "zero tariffs" in the 11th year.

"We are all paying attention to the trend of commodity prices and logistics prices on the Haitao website, and are ready to 'sell'." Fu Xin told reporters.

As a graduate student studying in Singapore, Yanshan (pseudonym) prefers to buy domestic products in domestic supermarkets and websites such as Taobao and Shopee. "Now that the influence of Chinese goods has become greater, it is more convenient to buy domestic goods abroad than before, but the same goods are much more expensive to buy abroad." It is hoped that after the implementation of RCEP, commodity prices will fall and the prices of cross-border logistics will also be reduced. ”

In addition to enjoying more preferential imported goods, the content on service trade in the RCEP also releases benefits to consumers, and new formats and models such as cross-border e-commerce, Internet finance, online office, online education, and online consultation will be accelerated.

Li Youhuan, director of the Social Cooperation Department of Guangdong University of Finance and Economics and doctor of economics, said in an interview with the 21st Century Business Herald that enterprises should actively grasp the upgrading of modern information technology, strive to cultivate new formats and new business models, seek breakthroughs in brand, efficiency, innovation, quality, etc., and extend the scope of services and service objects from the city, province and bay area to RCEP member countries to help service trade enterprises "go global".

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