There are prerequisites for integrating resources between China and South Korea’s textile industry

In the eyes of Korean enterprises, the significance of the signing of the free trade agreement is not only to increase the trade volume between the two countries, but also to become a trading partner that can integrate resources and expand exports to Europe and the United States. Li Yuanyou, chief representative of the filament department (China) of South Korea Huvis Co., Ltd., said: “We are optimistic about China’s future market and have also found that more and more companies are paying more and more attention to products. We are willing to work with these companies who want to make good products. , establish product quality benchmarks, and allow more Chinese products to go global.”
However, Li Yuanyou also pointed out that the prerequisite for realizing this dream is that China’s textile industry must transform and Chinese companies must pay more attention to product quality. He said: “We not only focus on the Chinese market, but the European market is also the company’s core business expansion area. Regarding the European and Chinese markets, our feeling is that the European market revolves around products, while the Chinese market revolves around price. This is the main difference between the two. The European market attaches great importance to product quality and has strict requirements on product quality and performance. It is very difficult to become their supplier, but once you become their supplier, it is not easy to change. Therefore, the market of South Korea Huvis in Europe is relatively stable. In China, fabric companies pay too much attention to price. Most companies are engaged in price wars, but they don’t particularly care about the performance of their products. In addition, too many fabric companies are trying to reduce costs, so the overall quality is not as good as in Europe.”
“The Chinese market is in a period of transformation. Although it is difficult to reverse the current business atmosphere, we still place our hope in the changes in the Chinese market and are willing to grow with the Chinese market.” Li Yuanyou said.
With the increase in trade volume between China and South Korea, the use of RMB settlement has also attracted the attention of the industries in both countries. The business opportunities brought by Chinese tourists have led to an increase in the number of Korean merchants joining UnionPay cards year by year. UnionPay cards have now become the most international cards applicable to ATMs in South Korea. In order to attract Chinese tourists, the South Korean government has further relaxed visa conditions and actively promoted RMB settlement. In areas where Chinese tourists are concentrated, the government has vigorously guided merchants to accept RMB settlement. According to a local media report, a well-known department store in South Korea has seen sales of clothing and cosmetics double since it implemented RMB settlement due to making payments more convenient and faster for Chinese tourists.
For the textile and garment industries of the two countries, the continuous expansion of trade scale will also increase the frequency of use of RMB settlement. Li Fengjie, chief researcher of the International Trade Research Institute of the Korea International Trade Association, said that the current trade between South Korea and China is developing rapidly, and the use of RMB settlement has brought convenience to enterprises of both countries, while also reducing costs and foreign exchange risks. In the past, trade settlement between the two countries was mainly in US dollars, resulting in a double exchange burden. The settlement amount was affected by the US dollar exchange rate, which also increased costs. At present, China and South Korea have further strengthened their cooperation in the financial field, and there is room for further improvement in the proportion of trade settled in RMB between the two countries.