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RCEP Agreement Boosts China’s Manufacturing Sector with More Export Opportunities

BusinessRCEP Agreement Boosts China's Manufacturing Sector with More Export Opportunities

Every ten minutes, Guangxi Liugong Machinery Co Ltd adds a brand new wheel loader to the long line of machines ready for export outside their Liuzhou-based plant. With the surge of overseas orders and an expanding market share, the company has been in full swing since the start of the year. China’s economic recovery and the high-quality implementation of the Regional Comprehensive Economic Partnership (RCEP) have been instrumental in boosting the manufacturing sector’s development and setting the economy on a strong footing.

Situated in Guangxi Zhuang autonomous region in South China, close to Southeast Asia’s RCEP economies, Liugong Machinery has had a string of breakthroughs in overseas markets this year. In January, the company’s export volume of construction machinery rose by over 50% YoY. Since February, the overseas shipment of large excavators has soared by 500% YoY. The company delivered wheel loaders to Thailand during the same period, marking the first batch of construction machinery exported under the RCEP agreement.

According to Xiang Dongsheng, Vice-General Manager of Liugong Machinery Asia Pacific Co Ltd, Chinese products now have a good reputation and satisfactory market share in Southeast Asia. He added that the company has accelerated the pace of international business development by leveraging Guangxi’s geographical location and its close cooperation with ASEAN countries.

The RCEP implementation offers valuable opportunities for China’s manufacturing enterprises to expand international markets, with a reduction of import costs and a bump in export opportunities. Li Dongchun, General Manager of Liugong Overseas Business Center, said that the RCEP region is an essential market for Chinese exports of mechanical and electrical products, and it has always been one of the company’s key overseas markets.

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