China hopes that Asia-Pacific pact will boost leather trade
Chinese leathermakers hope for an increase in demand for their raw materials and semi-finished products as a result of the Asia-Pacific Regional Comprehensive Economic Partnership.
The China Leather Industry Association (CLIA) recently released a special report on the opportunities and challenges presented by the country’s participation in the Asia-Pacific Regional Comprehensive Economic Partnership (RCEP). Following the publication of this document, three key opportunities in Chinese leather production have been highlighted by local analysts – cross-border cooperation and investment, global industry-wide development and an improvement in import/export trade.
It has been suggested that the RCEP will support the 15 Asia-Pacific nations which form the partnership in becoming what has been called ‘the most competitive leather and footwear industry manufacturing and consumption centre in the world’. Chinese manufacturers are reportedly hoping that demand within the region for their raw materials and semi-finished products will increase as a result of tariff reductions on Chinese leather.
However, Chen Zhanguang – secretary-general of the CLIA – acknowledged that lower RCEP tariffs would increase the intensity of domestic competition, requiring a mature understanding of the agreement and the active exploitation of its preferential tariff measures. He added that accelerating technological innovation and improving overall quality is paramount in order to ensure the continued competitiveness of China’s leather industry.
This article was originally published on page 3 of the July/August 2021 issue of SATRA Bulletin.