Since their first overseas order from Japan three decades ago, Sunvim, a major Chinese textile company has built a partnership with over one-hundred Japanese companies. Now, the manufacturer is preparing ten million towels for the upcoming Olympic Games in Tokyo and sees abundant opportunities in the recently signed RCEP free trade agreement. Zhou Jiaxin explains.
At one major textile exporter in East China’s Shandong province, a conference call between the local manufacturer and one of its Japanese partners is underway.
Over the years, they’ve been among traders reshaping the two markets.
The Chinese market is no longer about cheap labor. Companies across the world have seen the country offer trading partnerships coupled with high-end technology. For instance, they’ve offered towels and electronics better than Japan’s in terms of quality and technology.
SUN KEXIN General Manager, Sunvim Group “Japanese market has changed as well. We’ve upgraded our equipment and R&D abilities to meet the middle and high-end market. Now, we don’t wait for orders, we propose customized ideas for potential orders, which has been a success.”
This year, the company’s towel export to Japan has increased despite the pandemic and the tariff rates for China far above those for its neighbors like Vietnam.
And the latest and largest trade pact that China has signed with other 14 Asia Pacific countries including Japan, the Regional Comprehensive Economic Partnership, or RCEP, is likely to support some of its trading backflows.
Though the true effect of the pact remains to be seen, orders of towels for Tokyo Olympic village and the Games’ commercials have already been placed.
In the coming months, the company’s towels will be wiping athletic sweat and being used to cheer on champions.
