Chinese LED exporters benefiting from rapid AFTA developments

<< Go Back Posted By:administrator on Apr 29,2015in Industry News

LED lighting developed rapidly in Southeast Asia thanks to its infrastructure construction, which was promoted by the development and impact from the Association of South-East Asian Nations (ASEAN). ASEAN established in 1967, is an inter-governmental international organization gathering countries in Southeast Asia. With abundant natural resources, and it is one of the world's fastest growing economic regions.

In consideration of economic integration, the current main form of cooperation within and outside the ASEAN is Free Trade Area (FTA). ASEAN FTA was officially launched on Jan. 1st, 2002. The ASEAN-China FTA has been fully implemented on Jan. 1st, 2010. At this time, mainland China and 6 ASEAN nations will reduce their industrial tariffs to zero. The other 4 ASEAN nations will reach this goal in this year.

During 1Q14 to 3Q14, total trade between China and ASEAN nations reached nearly $346.6 billion, accounting for 11% of Chinese total foreign trade. The 2 sides are planning to update and expand the content and scope of the ASEAN-China FTA agreement, cutting non-tariff measures, actively proposing a new set of service trade commitments, promoting real openness in the investment field by improving market access and personnel interflow and enhance trade and investment liberalization and facilitation, and striving to raise two-way trade to $1 trillion by 2020.

Benefiting from China-ASEAN bilateral trade agreement, Chinese manufacturers enjoy lower tariffs even 0 tariffs when exporting LED products to ASEAN nations. For instance, once the Chinese firms obtains certificates proving the products origin are from China, LED component products exported to the ASEAN nations can enjoy 0 tariffs. For finished lighting products, taking LED bulb for example, tariff concessions provide a good environment for Chinese LED bulb manufacturers to enter the Southeast Asian market, and promote further industrial cooperation between China and ASEAN.