Data analysis of regional economic free trade agreement on the impact of home appliances industry

On November 15, asean plus China, Japan, the Republic of Korea, Australia and New Zealand formally signed the Regional Comprehensive Economic Partnership (RCEP). According to interpretation, after the agreement takes effect, the final number of tariff-free goods will exceed 90%, and the overall level of openness of trade in services and investment will be improved.

The agreement must be ratified by at least nine of the 15 members before it can enter into force. Trade liberalization of goods to improve the level of good home appliance exports. The areas covered by the agreement occupy an important position in China's household appliance exports, and the deepening of trade cooperation will contribute to the momentum of exports.

China's exports of household appliances to Asia hit a record high in 2019, rising 6.5% year-on-year to $29.38 billion, driven by trade between ASEAN, Japan and South Korea. Among them, China's exports to ASEAN reached 6.74 billion US dollars, up 18.2% year on year, and the growth rates to the top five markets (Thailand, Indonesia, Vietnam, Malaysia and the Philippines) were all around 20%.

In the face of the epidemic in the first half of this year, China's exports to Asia and Oceania still achieved year-on-year growth (growth rate of 0.04% and 4.56% respectively), outperforming European, American, Latin American and other markets. Among them, China's exports to ASEAN increased by 19.3% year-on-year.

Asean has a dense population, low penetration rates of several categories of home appliances, and considerable market space. The improvement of trade environment is conducive to the further expansion of home appliance enterprises market. Our electric and massage appliances have accumulated overseas, small appliances have the potential to expand.

In terms of white power, China has a fast growth in asean and other regions. In 2019, the export volume of refrigerators and freezers increased by 22.6% year-on-year, and the export volume of air conditioners increased by 25.8% year-on-year in the first half of 2020. In terms of market share, Chinese enterprises have an advantage in many regions covered by the agreement. According to euromonitor data, many categories in the Asia-Pacific, Australia, New Zealand, Japan and other markets rank top ten in the industry.

In terms of blackpower, according to the data, the sales volume in the first half of 2020 ranks the second in the Philippines and Australia, and the sales volume ranks the first in The Japanese market. In terms of massage instruments, Japan and South Korea are the major exporters of massage instruments in China, and the head enterprises have established good cooperative relations with the important manufacturers in the region. Trade facilitation will contribute to further market expansion.

In terms of small household appliances, taking floor sweeping robot as an example, Chinese enterprises have a more prominent market share advantage in Europe and other places, and there is still a large space for expansion in Japan, ASEAN and other regions involved in the agreement. The optimization of investment environment and the convenient flow of people are conducive to the transfer of the appliance industry chain.

The investment section of the Agreement includes investment protection clauses such as fair and just treatment, compensation for losses, and investment facilitation clauses such as complaint mediation; The temporary movement of natural persons provides visa convenience for the flow of all kinds of commercial personnel. The above agreement is conducive to the creation of a good investment climate.

Home appliance enterprises have the experience of setting up factories in Vietnam and other places. The optimization of investment environment will help these enterprises make good use of overseas advantages and improve production arrangements. Recommend groups with rich experience in overseas operations.