“Integrator” of regional economic and trade rules
According to the International Department of the Ministry of Commerce, RCEP integrates multiple “10+1” free trade agreements between ASEAN and China, Japan, South Korea, Australia, and New Zealand, and multiple pairs of free trade agreements between China, Japan, South Korea, Australia, and New Zealand. The partnership has also established a new free trade partnership between China, Japan, Japan and South Korea.
RCEP deepens the value chain of the industrial chain in the region by adopting regional rules of origin; it uses new technologies to promote customs facilitation and promotes the development of new cross-border logistics; it uses negative lists to promote investment liberalization and enhance investment policy transparency. Promote the optimization and integration of economic and trade rules in the region.
RCEP achieves the unity of high quality and inclusiveness. The number of final zero-tariff products in trade in goods will generally exceed 90%. The overall level of service trade and investment openness is significantly higher than the original “10+1” free trade agreement. High-level intellectual property rights, e-commerce, competition policies, Modernization issues such as government procurement.
At the same time, RCEP also takes into account the national conditions of different countries, grants special and differential treatment to least developed countries, and strengthens economic and technological cooperation through regulations to meet the actual needs of developing countries and least developed countries. It can be said that RCEP takes into account the demands of all parties to the greatest extent, will promote the inclusive and balanced development of the region, and enable all parties to fully share the results of RCEP.
Yuan Bo told a reporter from China Business News that if a certain company has investments everywhere, some are direct investment, and some are supply chain cooperation, that is, import and export trade. The purpose of RCEP is to help these companies reduce the cost of trade and investment as much as possible. .
“For example, when we import and export these intermediate or manufactured products, we are now exempt from tariffs, which is a convenience; when investing, we will give national treatment before access, and then serve And the investment field is given a higher level of openness than members of the World Trade Organization (WTO).” Yuan Bo said, “In this sense, the agreement is actually the overall layout of the supply chain industry chain for each country in the region. It provides a framework for institutional guarantees. With the support of this agreement, the uncertainty of policy will be reduced.”
Expand and open important platforms
The International Department of the Ministry of Commerce stated, “The total trade volume between China and RCEP members accounts for about one-third of China’s total foreign trade, and the actual investment from RCEP members accounts for more than 10% of China’s total foreign investment.
The formation of the RCEP integrated market will release huge market potential and further promote intra-regional trade and investment. This will help my country to further optimize the layout of foreign trade and investment through a more comprehensive, deeper and more diversified opening up. , To keep in line with international high-standard trade and investment rules, and build a higher level of open economic new system.
RCEP will promote my country’s various industries to participate more fully in market competition and enhance the ability to allocate resources in both international and domestic markets. This will help my country drive domestic innovation, promote reforms, and promote development by expanding opening up, continuously realize industrial transformation and upgrading, consolidate my country’s position in the regional industrial chain supply chain, provide effective support for the virtuous cycle of the national economy, and accelerate the formation of international economic competition New advantages of cooperation to promote high-quality economic development.
“In fact, this will also help China achieve its goal of stabilizing foreign trade and foreign investment.” Yuan Bo told the CBN reporter, “because when everyone carries out the overall regional investment cooperation layout, China has obvious advantages. From investment In other words, we have a manufacturing system with a full industrial chain. In terms of manufacturing, we have significant advantages in cost or comprehensive competitiveness. RCEP can also help us take advantage of this agreement to attract more foreign investment in our region. Invest and deploy.”
Yuan Bo said that after signing the RCEP agreement, it will help attract all aspects of industrial cooperation in the East Asian region.
Yuan Bo believes that regional value chains may not necessarily be formed through RCEP, which depends on the investment layout of multinational companies. RCEP reduces the cost and barriers of trade and investment among members, so many companies may be willing to put all the industrial chain in this area, but there are certain prerequisites.
“The premise is that everyone must have a relatively strong domestic market. For example, we are now promoting a dual cycle and expanding domestic demand. That is to say, some of the export products for Europe and the United States can also be transferred to China or Japan, but this is not all.” Yuan Bo said that RCEP will help promote the formation of a regional value chain, but it will not be achieved in the short term.
“We may promote harmony among Asian countries in certain regions (trade and investment cooperation). When the European and American markets are unstable, we will expand each other’s domestic markets. This is also a way to solve problems. “Yuan Bo believes, “In this sense, it can indeed promote the formation of a longer industrial chain in the region, or a more complete industrial chain layout. This is possible.”
According to the International Department of the Ministry of Commerce, RCEP will strongly boost all parties’ confidence in economic growth. According to calculations by internationally renowned think tanks, by 2025, RCEP is expected to drive member countries’ exports, foreign investment stocks, and GDP to increase by 10.4%, 2.6%, and 1.8% respectively from the baseline.