Since December 1, 2021, China’s customs will no longer issue GSP (Generalized System of Preferences) certificates of origin for goods exported to EU member states, the United Kingdom, Canada, Turkey, Ukraine and other 32 countries. This means that 32 countries in the world, including EU member states, the United Kingdom, Canada, Turkey, Ukraine, and Liechtenstein, cancel the GSP treatment for China’s exports. They will treat China as a developed country for trading, and will no longer grant GSP tariff preferences.
The GSP is a non- reciprocal and non-discriminatory system of tarriff preferences granted by all the developed countries in favor of the export products from the developing countries. The cancellation of the GSP by the countries concerned indicates that China's economy has achieved a historic rise.
It should be pointed out that the cancellation of the GSP benefit will have an adverse impact on the exports of some enterprises, but the overall impact is relatively limited. One of the most convincing examples is the Sino-US trade friction. Although the trade friction has lasted for many years, it has not affected the rapid growth of trade volume between China and the United States. However, for relevant foreign trade companies, in the short term, it is necessary to make full use of the achievements of China's Free Trade Area construction to transfer orders to countries and regions that have signed bilateral and multilateral free trade agreements with China to deal with export shocks; in the long run, exports enterprises should take this opportunity to accelerate the pace of transformation and upgrading, develop towards innovation and efficiency, and fundamentally enhance their ability to participate in international market competition.
The good news is that as the world’s most populous, largest, and most potential free trade agreement, the Regional Comprehensive Economic Partnership (RCEP) will come into effect on January 1 next year. RCEP is an advanced free trade agreement initiated by ten countries of the Association of Southeast Asian Nations and joined by five countries that have free trade agreements with ASEAN, including China, Japan, South Korea, Australia, and New Zealand. A total of 15 countries constitute a high-level free trade agreement. RCEP aims to establish a free trade agreement with a unified market by reducing tariffs and non-tariff barriers. While the majority of foreign trade companies are actively responding to the cancellation of the GSP, they may wish to pay more attention to how to identify RCEP market opportunities in order to better enjoy the benefits of RCEP. At the same time, Shenxi Group will also speed up the competitiveness of its own enterprises, improve the innovation capabilities of suspended platforms, construction hoists, mast climbing work platforms, loading platforms and other products, actively research and develop new products, and strive for greater market opportunities in the future.
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