On November 15, the Regional Comprehensive Economic Partnership Agreement (RCEP) was signed. After eight years of negotiations, the world’s largest free trade zone was finally announced and officially launched.
What is the significance of the signing of RCEP to the region, the world and China?
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-780.jpg)
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-781.jpg)
This is the container terminal of Shanghai Yangshan Port on November 3. Photographed by Wang Xiang, a reporter from Xinhua News Agency
Ruan Zongze, Executive Vice President of the Chinese Academy of International Studies, described the signing of the agreement as “critical and timely”. “Against the special background of rampant epidemic, severe recession of the world economy, shrinking international trade and investment, and intensifying protectionist unilateralism, all parties were able to reach a consensus on RCEP, declaring the victory of multilateralism and free trade, which will strongly boost all parties’ confidence in economic growth.”
Analysts pointed out that RCEP covers major countries in East Asia and will inject strong impetus into regional and global economic growth. According to the estimation of internationally renowned think tanks, by 2025, RCEP is expected to drive the export, foreign investment stock and GDP of member countries to grow by 10.4%, 2.6% and 1.8% more than the base line respectively.
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-782.jpg)
The ro/ro cargo ship “Laura” sailed into Xiuying Port at the mouth of the sea, which is the first auto foreign trade ship since the implementation of the policy of Hainan Free Trade Zone (taken on February 16, UAV photo). Photographed by Yang Guanyu, reporter of Xinhua News Agency
Unity of high quality and inclusiveness
It is reported that RCEP consists of the preamble, 20 chapters (mainly including trade in goods, rules of origin, customs procedures and trade facilitation, trade remedy, service trade, etc.), and 4 annexes to the market access commitment form.
What are the characteristics of RCEP? This is a modern, comprehensive, high-quality and mutually beneficial large-scale regional free trade agreement, said Wang Shouwen, Vice Minister of Commerce and Deputy Representative of International Trade Negotiation.
ASEAN has signed several “10+1” free trade agreements with China, Japan, South Korea and other countries. China, Japan, South Korea, Australia and New Zealand also have many pairs of free trade partnerships. In contrast, RCEP’s service trade and investment openness level is higher than the “10+1” agreement, which will play the role of “integrator” of intra regional economic and trade rules.
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-783.jpg)
On November 10, at Guangzhou Air Mail Processing Center of China Post Group, the staff worked in the general contracting waiting area. Photographed by Deng Hua, a reporter from Xinhua News Agency
The head of the International Department of the Ministry of Commerce pointed out that RCEP will deepen the regional industrial chain value chain by adopting the rules of origin accumulated in the region; Using new technologies to promote customs facilitation will promote the development of new cross-border logistics; Adopting the negative list to promote investment liberalization will enhance the transparency of investment policies, which will promote the optimization and integration of intra regional economic and trade rules.
“High quality” is a significant feature of RCEP: the final number of zero tariff products in goods trade will exceed 90% as a whole, the overall opening level of service trade and investment will be significantly higher than the original “10+1” free trade agreement, and high-level intellectual property rights, e-commerce, competition policy, government procurement and other modern issues will also be included
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-784.jpg)
This is a jigsaw photo. The picture above shows the “Amore Store” in the Amore Pacific headquarters building in Longshan District, Seoul, South Korea, on October 27 (shot by Wang Jingqiang, a reporter from Xinhua News Agency); The following figure shows that on November 8, visitors tried out skin care products at Amore Pacific booth in the consumer goods exhibition area of the Third China International Fair (photographed by Zhang Yuwei, a reporter from Xinhua News Agency). Shen Jizhong
In the first three quarters of this year, ASEAN has historically become China’s largest trading partner. China’s total trade with other RCEP members reached US $1055 billion, accounting for about one-third of China’s total foreign trade. Such a huge trade volume will undoubtedly produce a huge “trade creation” effect by reducing tariffs.
It is worth mentioning that through the signing of RCEP, China Japan, Japan and South Korea, which had no free trade agreement, have also established a new free trade partnership, and the degree of free trade in the region has been further improved.
“The conclusion of RCEP will help promote a higher level of economic integration between China, Japan and the ROK, and also lay the foundation for the conclusion of the China Japan ROK Free Trade Agreement in the future.” Wang Shouwen said.
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-785.jpg)
On November 10, the audience walked out of the booth of Japan Trade Promotion Agency in the food and agricultural products exhibition area of the Third International Fair. Photographed by Chen Yehua, reporter of Xinhua News Agency
An important platform for China’s higher level opening up
Accelerating the implementation of the free trade zone strategy is an important part of China’s new round of opening up.
The proposal of the “Fourteenth Five Year Plan” clearly proposes to “build a global network of high standard free trade zones”;
Analysts pointed out that the establishment of the RCEP Free Trade Zone will provide great help for China to build a new open economic system in the new era, and form a new development pattern with domestic big circulation as the main body and domestic and international double circulation promoting each other.
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-786.jpg)
This is a jigsaw photo. The picture above shows the employees of Alexis New Zealand working on the ice cream production line (information photo, Xinhua News Agency); The figure below shows the staff displaying ice cream imported from New Zealand at the G’nature booth of the 3rd China International Fair on November 7 (photographed by Zhang Yuwei, a reporter from Xinhua News Agency). Shen Jizhong
Two groups of figures can best confirm the “gold content” of RCEP:
——After the signing of RCEP, China will sign 19 free trade agreements with foreign countries and 26 free trade partners;
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-787.jpg)
In a food company in Danfeng County, Shangluo City, Shaanxi Province, the anchor is conducting a live webcast (shot on July 20). Photographed by Liu Xiao, a reporter from Xinhua News Agency
Bai Ming, the deputy director of the International Market Research Institute of the Research Institute of the Ministry of Commerce, said that the signing of RCEP will help China further optimize its foreign trade and investment layout through a more comprehensive, deeper and more yuan opening up, keep in line with international high standard trade and investment rules, and build a new open economic system of a higher level.
At present, it is still some time before the RCEP finally takes effect: according to the regulations, the RCEP agreement can only take effect after being approved by at least 9 of the 15 members, including at least 6 ASEAN members and at least 3 of China, Japan, South Korea, Australia and New Zealand.
According to Wang Shouwen, next, each member of RCEP will perform its own domestic legal approval procedures to promote the early entry into force and implementation of the agreement. All countries have accelerated their domestic ratification procedures, and China will work with all parties to make sure that the RCEP agreement can benefit enterprises and people in the region as soon as possible.
![](https://www.hzyyingyu.com/wp-content/uploads/2022/10/test-788.jpg)
(Source: Xinhua News Agency)