On November 15, the regional comprehensive economic partnership agreement (RCEP) was officially signed. The content of the agreement mentioned that the total number of zero tariff products in the future should reach more than 90%, and the tariff reduction should focus on the promise of reducing tariff immediately to zero tariff and within ten years. In addition, the free trade relations between China, Japan and South Korea have been added. The trade coverage between China and its free trade partners will increase from 27% to 35%.
It is understood that RCEP covers more than 3.5 billion people, accounting for 47.4% of the world, 32.2% of the world's GDP, and 29.1% of the world's total foreign trade. It is the most potential free trade area negotiation with the largest population in the world. The goal is to eliminate internal trade barriers, create and improve a free investment environment, and expand trade in services. It will also involve regional cooperation in intellectual property protection, competition policy and other fields. Its members include 10 ASEAN countries, China, Japan, South Korea, India, Australia and New Zealand.
According to the latest statistics of the Ministry of Commerce, in the first three quarters of 2020, China's total trade with other RCEP members reached 1055 billion US dollars, accounting for about one third of China's total foreign trade.
In addition, some data show that in 2019, 218 countries in the world imported e-cigarettes from China, with a total purchase amount of RMB 76.585 billion.
The RCEP signed this time includes seven countries that can sell e-cigarettes, including South Korea, Japan, Indonesia, the Philippines, Malaysia, Australia and New Zealand. Among them, Japan, South Korea and Malaysia ranked among the top 10 in terms of e-cigarettes purchased in China.
Therefore, under the RCEP framework, with the sharp reduction of e-cigarette tariff and the further increase of market demand in Japan and South Korea, it is expected to provide a large increase for China's e-cigarette export.
In addition, other countries (such as Vietnam) that allow the sale of e-cigarettes but still have high import tariffs on e-cigarettes, are expected to gradually increase the import of e-cigarettes from China in the future with the reduction of tax rates.
Therefore, with the global e-cigarette regulation becoming more and more standardized, enterprises with weak competitiveness accelerate to exit, and the head enterprises are expected to benefit.
Recently, or affected by the RCEP signing, e-cigarette related plates achieved a one-day surge of more than 20%.
On November 18, the global e-cigarette leader, SIMORE international, rose more than 4%, hitting a record high of HK $49.1 in the session, up about 40% since October; Huabao international rose by 20%, accumulating about 42% this month.
As we all know, China's position in the international e-cigarette market is unshakable, and the e-cigarette industry has also made an important contribution to China's export.
Recently, with Huawei's arm broken to survive and sell glory, netizens have exploded pot after pot, proposing to use electronic cigarette counter system.
To be calm, maybe we should seize the market opportunity and further enhance our voice in the field of e-cigarette, so as to promote the development of other related industries.