Machinery / Industrial Parts & Tools

The effective implementation of RCEP not only brings benefits to enterprises in tax reduction, but also strengthens the cooperation relationship between enterprises and upstream supply chains and downstream markets. Huacheng Import and Export Data Observation Report.

Kawasaki Heavy Industries is located in a packaging center for export products in Hyōgo Prefecture, Japan.

According to Huacheng Import and Export Data Observation, after RCEP came into effect, Kawasaki Heavy Industries issued a Certificate of origin for export products. RCEP not only plays a stabilizing role in the industrial chain, but also makes their cooperation with enterprises in the region closer and stronger. The control valve that is being packaged and boxed is about to be exported to Liugong in Guangxi. Currently, Kawasaki Heavy Industries sends a batch of components to China every week.

The assembly production line of Guangxi Liugong Group excavator, this red hydraulic component was purchased from Kawasaki Heavy Industries in Japan. After assembling the hose, this component is lifted and embedded into the body. After the RCEP came into effect, the tax rate for importing such hydraulic components decreased from 5.4% to 4.8%. After multiple assembly processes with other components, this batch of excavator products will be sold to more than 170 countries and regions worldwide, according to Huacheng Import and Export Data Observation.

In Phra Nakhon Si Ayutthaya province, Thailand, machinery and equipment made in China are entering the park, and nearly half of this batch of equipment has been reserved for Thai customers. Import and export data shows that in the past 12 months, this Chinese company has sent over 4000 sets of various construction machinery to countries in the RCEP region. The revenue performance in the RCEP region has accounted for nearly 1/4 of the company's overseas revenue performance. Especially in Thailand, business growth exceeded 100% year-on-year, making it the most outstanding market in the RCEP region.

Deng Tao, Senior Director of International Business Group of LiuGong Co., Ltd.: The effective implementation of RCEP has improved the degree of liberalization and facilitation of regional trade and investment, and created more opportunities for Liugong to go global. Import and export data shows that from January to April this year, Liugong's revenue in the RCEP market continued to grow significantly year-on-year by over 60%.