RCEP takes effect, LED lighting welcomes new opportunities for development

On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) came into effect! The signing of the agreement is known as a landmark event in the field of foreign trade after China's entry into the WTO, and will bring significant benefits to several fields in my country, including the LED display and lighting industries.

Judging from the distribution of global LED lighting exports in recent years, the performance of the Asia-Pacific market is significantly better than that of the European and American markets, and the markets where the RCEP countries such as East Asia, Southeast Asia, and Oceania are located have performed better. In 2020, the export value of LED lighting products in the regions where the main contracting states of RCEP are located will be about 7.5 billion US dollars, accounting for 21.3% of exports. Among the export destination countries of my country's LED lighting products, RCEP countries South Korea and Thailand achieved super-high growth of more than 60%, and Vietnam increased by more than 10%. After the RCEP is signed, Ledman Torshare's indoor lighting and outdoor lighting businesses may enjoy "double dividends" from import and export. While enjoying the RCEP free trade facilitation, the Chinese-funded enterprise Vietnam Torshare will also enjoy the Asia-Pacific Economic Cooperation (APEC) and the negotiating Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade preferences.

In 2020, LED display companies have experienced problems such as rising upstream driver IC prices and shortage of chips. Coupled with the impact of the epidemic, the export of LED displays has also been affected to a certain extent.

Asia is the region with the largest export volume of LED displays in China. The RCEP has carried out large-scale phased tax reductions for 90% of the trade in goods between the ten ASEAN countries and China, Japan, South Korea, Australia and New Zealand, effectively reducing my country's While the upstream supply cost of LED display companies reduces the export cost of downstream finished products, it further expands the profit margin and injects a booster for the recovery of the LED display import and export market, especially the Southeast Asian regional market, which has slowed down under the epidemic.