From January 1st, the China-ASEAN Free Trade Area, the world's largest free trade zone, began to operate. However, ASEAN media said that due to concerns about the impact of Chinese furniture, the ASEAN Furniture Association will try to lobby their respective governments to delay the implementation of the free trade agreement. Dongguan furniture industry people do not agree, it is recommended that furniture companies use some ASEAN member countries to sign a free trade agreement with major Western markets. Concerns from the ASEAN furniture industry According to the agreement, China will impose zero tariffs on 90% of the products of Indonesia and other six ASEAN countries, and the average tariff will be reduced from 9.8% to 0.1%. The average tariff of the six ASEAN countries on China will fall from 12.8% to 0.6%. Four new ASEAN member countries, including Vietnam, will achieve a 90% zero tariff in 2015. A few days ago, Indonesian local media quoted Anbar, the president of the National Association of Crafts and Crafts Industry, as saying that “cheap Chinese furniture products will impact the ASEAN market, especially the Indonesian furniture industry. The entrepreneurs of the ASEAN Furniture Association have reached a consensus and will try to Lobbying their respective governments to delay the implementation of the China-ASEAN Free Trade Agreement. In fact, not only furniture, Indonesia is also worried about the impact of its steel, textile, electronics and petrochemical industries, and plans to postpone the cancellation of tariffs on these industries. Dongguan furniture industry comparative advantage for the Indonesian furniture industry to delay the free trade zone plan, familiar with the Pearl River Delta furniture industry, the international furniture decoration industry (Hong Kong) Association consultant Chen Qinghua believes that the impact on Dongguan is not big, because Indonesia is only a very small export market in Dongguan portion. Chen Qinghua said that ASEAN furniture mainly uses oak solid wood furniture, and imported Chinese plate furniture is concentrated in practical categories such as dining tables and chairs. The products of Dalingshan Fuyun Furniture Company are exported to Southeast Asia. The general manager of the company, Li Wei, said that after the completion of the free trade zone, Dongguan furniture can not fully say that there is an advantage. If the design is adjusted according to local style, the competitiveness can be further strengthened. Ai Gu furniture general manager Zhong Saixian also confirmed that the surface treatment level of ASEAN local panel furniture is still far behind the crafts of Dongguan. “Indonesia is actually contradictory to Chinese furniture.†Chen Qinghua analyzed that the Indonesian side does not want to be affected by Chinese furniture, and that Chinese furniture can be transferred to the past. When using the "window" of ASEAN investment to stir up the convenience of the free trade zone, one fact is often overlooked: some ASEAN countries have reached a free trade agreement with some developed countries in advance, which is to "go out" and avoid trade barriers. "window". Take Vietnam as an example. In 2000, it signed a bilateral trade agreement with the United States. Australia is also a free trading partner. In 2006, after China’s furniture suffered from US anti-dumping, it had set off a wave of Dongguan furniture companies going to Vietnam to invest and set up factories, and the curve entered the US market. However, Li Zhongbo, secretary general of the Dalingshan Furniture Association, said that although Dongguan furniture companies did invest in the local area, the results were not good. “There is something like China in the 1980s. The market order is very chaotic.†Previously, Dalingshan’s Taiwan-funded enterprise Lifu Furniture moved to Vietnam, but according to people familiar with the company, it is often necessary to operate in Vietnam. Limited by logistics and matching. Whether the free trade zone brings benefits to the procurement of raw materials for Dongguan furniture enterprises, Li Zhongbo said, “The timber of Dalingshan furniture enterprises is now widely sourced, not only in Southeast Asia, North America, but even in South America. Can you enjoy the free trade zone? The benefits depend on the tariff catalogue and the specific timber source of the company."
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