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Wenzhou electric industr's role in RCEP.

Secretary general Mr.Huang(from Wenzhou Electric Association) answer the journilist of Wenzhou News about the Wenzhou electric industr's role in RCEP.


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Q:Mr. Huang, what is the trade and production situation of Wenzhou electrical industry in the RCEP area?


A:According to statistics, in 2020, the total sales volume of the city's electrical industry is about 163 billion yuan, with a year-on-year growth of 7.8%; The industrial added value was 21.5 billion yuan, up 8.3% year on year. The annual electrical export delivery value was 16.933 billion yuan, up 10.1% year on year. The export regions are ASEAN, Middle East, European Union, Latin America, Africa, Russia and the United States in the order of export volume.

At present, the RCEP is the largest free trade area in the world with broad prospects and great potential for development. Compared with the data of the whole year of 2019, the export of ASEAN market increased by 4.57% year on year, and the trade share of ASEAN market also increased greatly. Among them, Thailand was 637 million yuan, a year-on-year increase of 16.84%; Vietnam 490 million yuan, up 19.61% year on year. In addition, the South Korean market was 489 million yuan, with a year-on-year growth of 19.17%; Australia market 384 million yuan, an increase of 13.14%; New Zealand 258 million yuan, an increase of 29.18%;


Q:Please talk about the impact of the implementation of RCEP on the development trend of electrical industry.


A:As the world's largest free trade agreement, RCEP's member countries include 10 ASEAN countries, China, Japan, South Korea, Australia and New Zealand, covering 29.7% of the world's population and 28.9% of its GDP, which means that about one third of the world's economic volume will form an integrated market. The effective implementation of RCEP will promote one third of China's trade to achieve zero tariff, drive the corresponding service and investment opening, promote trade facilitation and business environment improvement, can directly reduce transaction costs, and promote the redevelopment of trade in electrical products.


As a more comprehensive regional cooperation, RCEP will aggravate the competition in low-end industries with higher quality requirements and more flexible industrial chain layout, which will be conducive to the survival of the fittest in the electrical industry and realize industrial upgrading. It is more conducive to the technical cooperation between the electric industry enterprises and Japan, South Korea and other advanced industrialized countries and enterprises, expand the import of advanced technology, equipment and parts, help the electric enterprises to improve the core competitiveness and achieve high-quality development. In addition, through trade facilitation, simplified customs clearance procedures and gradual improvement of supporting policies within the framework, the manufacturing costs can be further reduced and the profit space of enterprises can be expanded.

At present, Wenzhou territory electrical products exports account for only about 10 percent of output value. It is believed that with the help of RCEP, the export value of the electrical industry will have a big increase.


Q:Wenzhou electrical industry how to seize the RCEP dividend?

A:In the development course of more than 40 years, the electrical industry has gradually formed a large and relatively complete industrial chain and nearly 20 professional small industries, the industrial scale and quality and efficiency continue to expand and improve, the industry development into a stable growth. Under the new situation of RCEP, how to grab the market dividend of the electrical industry? Our association believes that:

One is to let electrical enterprises quickly master the rules of RCEP. "If you want to do a good job, you must first use the tools". If an enterprise wants to grasp the business opportunities and seize the market, it is necessary to study and quickly grasp the market rules.

Second, electrical enterprises should have a stronger sense of competition. With the further opening up of services, goods, investment and markets in 15 countries, competition is becoming fiercer and fiercer. Therefore, enterprises should have a stronger sense of competition and better business philosophy. Enterprises shall benchmark advanced industrial standards, quality standards and technical standards. Enterprises should have sufficient psychological preparation, the courage to develop and grow in the competition.


Third, we will maintain the safety and stability of the electrical industry chain and supply chain in the region. Wenzhou yueqing area is the most perfect domestic electrical development of whole industry chain, industry chain vertical supporting collaboration is perfect, has the specialized components form a complete set of production advantages, formed by leading backbone enterprises key products and assembly production, marketing and technical research and development, small and medium-sized enterprises focus parts processing production system of regional industry chain vertical division of labor cooperation, Especially with a group of professional mold manufacturing, basic parts, electronic basic parts, packaging, electroplating, logistics and marketing teams and other key parts supporting suppliers and service providers, the development of the whole industrial chain for Wenzhou Electric Cluster has brought a strong regional core competitiveness.


Q:In what respect does association of industry of Wenzhou electric hope government branch gives support and help?


A:The signing of the RCEP will strongly promote the balanced development of China's foreign trade. On the one hand, it is conducive to diversifying China's imports and expanding the import of advanced technology, equipment and spare parts. On the other hand, it will also help stabilize China's exports to countries in the region. As our electrical industry association, first, we hope that the government departments can promote exchanges and cooperation among civil organizations in the RCEP region, and enhance the participation of social forces and civil organizations.


Second, build a major platform for international cooperation based on the RCEP regime. The RCEP includes major countries in the East Asia region, and the completion of its free trade area means that about one third of the global economy will form an integrated market. Government-led establishment of targeted online and offline trading platforms helps the industry to accurately and rapidly position the market. Third, we hope that the government can carry out international exchanges and cooperation. Targetedly hold relevant forums and lectures, set up a platform for enterprises, broaden the path of internationalization of enterprises, and guide enterprises to actively participate in.