What RCEP brings is "real money" and common prosperity
[Dialogue at Guangming International Forum]
The world's largest free trade agreement
Xiao Lianbing:
Dear Secretary-General Lin Yuhui and Ambassador Deng Xijun, the Regional Comprehensive Economic Partnership Agreement (RCEP) initiated by ASEAN took effect on January 1, 2022.
At this important historical moment, please introduce RCEP, the original intention of ASEAN to initiate RCEP, and the reasons why RCEP attracted China and other Asia-Pacific members to join.
Lin Yuhui:
RCEP is a regional trade agreement between ten ASEAN member countries and five ASEAN free trade partners (Australia, China, Japan, South Korea and New Zealand). It covers about 30% of the world’s population and 30% of global GDP. , 1/4 of trade in goods and services, and 31% of foreign direct investment.
These figures show that RCEP is the world's largest regional trade agreement.
RCEP has adhered to the ASEAN-led principle in the past and now, which was first proposed in 2011.
At the 21st ASEAN Summit in 2012, the participating parties reached an agreement on the negotiation tasks of RCEP; the negotiations were officially launched in May 2013, and the RCEP was finally signed in November 2020.
ASEAN has played a leading role in the entire negotiation process and even in the process of implementing RCEP in the future.
RCEP is the most ambitious trade agreement initiated by ASEAN. It aims to build a modern, comprehensive, high-quality, mutually beneficial and win-win economic partnership.
The full text of RCEP contains a total of 20 chapters, 17 annexes and 54 commitment forms.
This agreement covers a wide range of areas, including areas not covered by the previous China-ASEAN Free Trade Agreement, such as e-commerce and small and medium-sized enterprises.
RCEP has brought huge benefits to its contracting parties.
It simplifies trade rules and provides greater market access for traders and business owners throughout the region.
Tariff and non-tariff trade barriers will be eliminated, and restrictive measures for service trade and investment will be eliminated within a certain period of time.
RCEP connects ASEAN, China, Japan, and South Korea through a single regional trade agreement. The purpose is to deepen the interconnection of the world’s major trading nations in various fields such as electronics, automobiles, textiles and clothing, and agriculture, and ultimately enhance the region’s global supply Position in the chain.
Therefore, RCEP will assist in creating a more favorable business environment, thereby further expanding trade and investment, and creating new business and employment opportunities for the contracting parties.
After the new crown pneumonia epidemic is over, RCEP can help all parties to achieve long-term and sustainable economic recovery.
Deng Xijun:
Why do so many countries choose to join RCEP?
First of all, the vigorous development of numerous "10+1" free trade agreements has allowed countries to taste the sweetness. It has also provided a strong backbone for a larger-scale regional economic and trade structure and strengthened the confidence of all parties in multilateral cooperation and free trade.
Second, all parties highly recognize East Asia, the center of global economic growth.
The population, economic volume and trade volume of the 15 RCEP countries account for about 30% of the world's total, making it the world's largest free trade agreement, surpassing the European Union in scale, and bringing unprecedented dividends.
According to calculations by research institutes, by 2030, RCEP will drive the GDP of each member country to increase by an additional 0.2% per year.
Thirdly, there is another important point in the attractiveness of RCEP, namely, ASEAN leadership.
ASEAN itself is highly diversified, with a more balanced, pragmatic and inclusive position. Its leading negotiations take into account the interests of developing and developed members, allowing as many people as possible to board the boat and committing to common prosperity instead of blindly pursuing high standards. There is even a situation in which developed countries bully the weak.
Such opportunities are precious to many developing countries in the region.
Xiao Lianbing:
Can you talk about the history of RCEP negotiations and China's contribution to the promotion of RCEP signing?
Lin Yuhui:
Like the negotiation of any trade agreement, the RCEP negotiation process is also a challenging task for all parties.
RCEP is an all-round agreement that has undergone intensive and repeated technical consultations.
Without the mutual understanding and cooperation of all parties, the agreement cannot be finally signed.
The RCEP negotiation process itself also brings together countries with different levels of economic development.
In addition, the RCEP negotiations also covered issues not covered in the China-ASEAN Free Trade Agreement.
Therefore, from a technical point of view, these all make the negotiation process more complicated and more challenging.
It is precisely because of these difficulties that in more than 8 years, the parties have conducted 31 rounds of formal negotiations.
In 2021, the minimum number of approvals/acceptances required for entry into force has finally been obtained, and the RCEP will officially enter into force on January 1, 2022.
Throughout the negotiation process, China played a major role in the preparation and approval stages of the agreement's entry into force.
China is also one of the first countries to ratify the agreement and submit a letter of acceptance to the ASEAN Secretariat.
Deng Xijun:
This major achievement of RCEP can be described as difficult.
Among the 15 RCEP countries, there are both the world's leading developed countries and the least developed countries, with very different levels of economic development, diverse cultural backgrounds, and diverse political systems. There must be many differences and compromises in the negotiation process. Balancing the interests of all parties requires a high degree of wisdom.
This is the essential reason for the difficulty of RCEP negotiations.
Then there is the "massive" negotiation work. The agreement text of more than 14,000 pages needs to be carefully considered and repeated.
There are a total of 225 bilateral negotiations on goods, services, and investment market access commitments, and the two sides need to conduct detailed consultations on tens of thousands of products.
Developed countries generally have a high level of liberalization ambitions, while some developing countries hope to lower the threshold as much as possible, and all parties are also facing pressure from domestic industrial sectors, all of which have brought huge challenges to negotiations.
In the process of advancing the negotiation of the agreement, ASEAN’s central position and leadership role is the "sacred needle of the sea", which has been able to promote so many countries to eliminate many differences, make political decisions, and finally reach an agreement.
China has always adhered to and maintained its position as the center of ASEAN and played a vital role in promoting the RCEP.
The Chinese side did not miss a ministerial meeting and negotiation, and hosted the ministerial meeting and negotiation at a critical moment, and promoted the resolution of the difficult issues of the negotiation in the spirit of "promoting talks, promoting cooperation, and facilitating", and made outstanding contributions to the negotiations.
After the signing of the agreement, China has accelerated the implementation of domestic procedures, and deposited the Chinese approval letter with the ASEAN Secretary-General in April 2021, taking the lead in completing the approval procedure formally among non-ASEAN countries.
A powerful tool for inclusive and sustainable recovery
Xiao Lianbing:
What is your comment on the effective date of RCEP?
What role will RCEP play in the healthy economic development of the Asia-Pacific region in the post-epidemic era?
Lin Yuhui: The
rapid approval process fully demonstrated the firm commitment of all parties to RCEP.
RCEP is a powerful tool to achieve inclusive and sustainable recovery after the epidemic.
For ASEAN, the implementation of RCEP is an important part of the post-epidemic economic recovery, because it will open up opportunities to expand regional trade and investment, and then promote the growth and development of the global economy, which is critical to post-epidemic recovery.
After the RCEP takes effect, the region can realize more convenient goods circulation and cross-border services, as well as more convenient investment activities.
Contracting parties to RCEP will also benefit from simplified and unified trade rules, as well as greater market access for goods, services, and investment.
To enhance the region’s global competitiveness, the agreement will also reduce the cost of cross-border trade within the region.
After RCEP takes effect, 65% of product trade restrictions between the parties will be lifted; in addition, within a certain period of time, 92% of trade restrictions will be lifted.
Since companies can evaluate the long-term opportunities and impact of RCEP on business models and business relationships in the region, the significantly enhanced economic integration among RCEP members will also bring more job opportunities.
By then, many companies will expand their scale, hire more employees, and fully reap the benefits of RCEP.
Deng Xijun:
After
hardships and
setbacks, we are pleased to see that 10 member states have completed the RCEP approval process to ensure that RCEP will take effect on January 1, 2022.
It is precisely because RCEP members are fully aware that RCEP brings "real money" and common prosperity, and its value and potential are unmatched by other economic and trade arrangements. Therefore, all parties are working together to overcome geopolitical disadvantages and epidemic belts. Due to the multiple difficulties that have come, we will speed up the domestic approval process and look forward to launching this ship as soon as possible.
The entry into force of RCEP will strongly promote the economic integration of the Asia-Pacific region and promote economic recovery and growth after the epidemic.
One is to effectively boost the confidence of countries in the region in economic growth after the epidemic.
The member states of RCEP jointly promoted the agreement to enter into force as scheduled, and sent strong signals to oppose unilateralism and protectionism, support free trade and safeguard the multilateral trading system.
The second is to promote a substantial increase in regional trade and investment.
On the basis of the original "10+1" free trade agreement, RCEP's goods, services, and investment liberalization levels have reached a record high, coupled with many new facilitation measures, will further enhance the effect of trade creation and bring vigorous business opportunities.
The third is to consolidate and promote the integration of regional industrial chains, supply chains and value chains.
RCEP has achieved the unification of many economic and trade rules and standards, will greatly optimize the overall business environment in the region, reduce enterprise costs, promote the free flow of economic factors in the region, strengthen cooperation in the division of production among members, promote the expansion and upgrade of the consumer market in the region, and realize the industry in the region Further consolidation and development of the chain, supply chain and value chain.
In addition, RCEP will increase economic and technical assistance to developing economies and the least developed economies to gradually bridge the development gap among members, effectively promote coordinated and balanced regional development, and promote the establishment of a new pattern of open regional economic integration development. .
Demonstrate the dependence on multilateralism and economic globalization
Xiao Lianbing:
How do you see the trend of economic globalization and the role of the Asia-Pacific region in the global supply chain?
Lin Yuhui: The
new crown pneumonia epidemic has increased the risk of global decoupling.
However, in the post-epidemic era, a sustainable recovery requires the concerted efforts of all members of the international community to mobilize more, not less, trade and investment resources on a global scale.
Many new global challenges, such as public health and climate change, require global solutions.
This means that no matter at the regional or global level, all countries should strengthen cooperation and close collaboration.
In addition, it is important to note that the RCEP was signed against the backdrop of anti-globalization sentiment and rising trade protectionism, which in itself demonstrates the region’s firm commitment to a free, inclusive, and rule-based trading system.
Our supply chain system is fragile in the face of global economic shocks. This is the painful lesson that the global pandemic has taught people.
Therefore, RCEP will strengthen the regional and global value chains so that they can withstand future shocks.
First of all, RCEP will bring more opportunities for large and small companies in the region to better participate in and integrate into regional and global supply chains.
Secondly, this will also bring more potential supplier options to international companies, so as to create a more resilient global value chain that can withstand the impact of future economic turmoil.
Third, some measures to promote the circulation of goods, such as more direct rules of origin and trade facilitation measures, will help manufacturers in the region to more effectively meet the needs of the supply chain.
Deng Xijun: At
present, the new crown pneumonia epidemic is raging around the world, the world economy is in a deep recession, various new challenges are emerging one after another, and the negative argument of "reverse globalization" is resurgent.
At the 4th China International Import Expo, China emphasized the need to grasp the general trend of economic globalization, support countries around the world in opening up, oppose unilateralism and protectionism, and let the spring breeze of openness warm the world.
This will have a profound impact on consolidating the world’s open consensus, boosting open confidence in all countries, and promoting the process of globalization.
RCEP itself is the triumphant result of multilateralism and free trade. It will surely add new momentum to the development and prosperity of the region and the world, and become a new engine in the process of economic globalization.
Its signing and formal entry into force inject a boost into the regional and global economic recovery, sending a strong message: to promote economic recovery after the epidemic must rely on multilateralism and economic globalization, closed exclusive, deliberate "decoupling" will only backfire.
The full entry into force of RCEP will enable East Asia, which is the global economic growth center and production base, to maintain its growth momentum. Its spillover effect will inject strong impetus into global economic growth and boost global economic and trade confidence.
Xiao Lianbing:
What work do RCEP members still need to do?
What support can China provide for ASEAN countries to implement RCEP?
Lin Yuhui:
After the signing of the RCEP in 2020, the contracting parties have been conducting various preparations around the entry into force at the national and regional levels.
First of all, it is necessary for the contracting parties to pass some domestic implementation rules to effectively implement the RCEP commitments at the national level.
Secondly, the parties need to continue to carry out promotional activities in their respective business circles, especially small and medium-sized enterprises, so that enterprises with limited information access capabilities can fully understand RCEP.
Third, the contracting parties should make full use of the economic and technical cooperation plan under the RCEP framework to support the implementation of the agreement in an inclusive and efficient manner.
I believe that China’s contributions in these areas will be highly appreciated by all ASEAN member states.
Deng Xijun: In
order to ensure the smooth and effective implementation of RCEP, RCEP members need to do all the technical preparations on the one hand, and on the other hand, they need to provide adequate support for enterprises inside and outside the domain, especially small, medium and micro enterprises to be familiar with and make good use of RCEP.
To this end, China has completed the relevant technical preparations for the implementation of RCEP; carried out the promotion and training of the agreement, assisted localities, industry organizations, and enterprises to fully understand the RCEP rules; established a free trade zone implementation service platform to provide enterprises with information and consulting services.
China is willing to provide all kinds of support and assistance within its capacity for ASEAN countries to implement the agreement, so that countries can benefit more from the agreement, especially in the areas of agricultural exports, inspection and quarantine, and trade facilitation. More convenience and support.
Complements the "One Belt One Road"
Xiao Lianbing:
How do you evaluate the progress of the “Belt and Road” initiative in ASEAN?
How can the “Belt and Road” initiative provide support for RCEP?
Lin Yuhui: The
“Belt and Road” initiative can enhance the interconnectivity within ASEAN and between ASEAN and other regions, thereby enhancing ASEAN’s competitiveness, economic prosperity and economic resilience.
By strengthening the links and coordination between the "Master Plan for ASEAN Connectivity in 2025" (MPAC2025) and the "Belt and Road" initiative, ASEAN and China can achieve closer cooperation.
The joint statement on the collaborative advancement of MPAC2025 and the “Belt and Road” initiative adopted in 2019 reaffirmed our firm commitment to achieve a modern, comprehensive, high-quality, and mutually beneficial economic partnership through RCEP.
The "ASEAN Infrastructure Preliminary Plan" issued by ASEAN in 2019 clarifies the infrastructure priority projects of ASEAN member states.
The new crown pneumonia epidemic has not only strengthened previous trends in this field, but also brought more investment opportunities, such as exploring the sustainability and inclusiveness of infrastructure, energy transition, digital interconnection, supply chain resilience, and the deepening of the private sector Participate and so on.
Therefore, there are extensive opportunities for cooperation between ASEAN and China.
China can support the existing "ASEAN Infrastructure Preliminary Plan" and provide development financing for ASEAN's future infrastructure priority projects.
Deng Xijun:
ASEAN is a key area for high-quality joint construction of the “Belt and Road”
initiative
.
China and the ten ASEAN countries have signed the "Belt and Road" bilateral cooperation documents, and signed the "Joint Statement on the Docking and Cooperation of the "Belt and Road" Initiative and the ASEAN Interconnection Master Plan 2025" with ASEAN.
Against the backdrop of the raging global epidemic, China and ASEAN countries' cooperation in the construction of the “Belt and Road” is still showing a good momentum of comprehensive and in-depth development.
A number of landmark projects that benefit the people's livelihood, such as the China-Laos Railway, the Yawan High-speed Railway, and the International Land-Sea New Corridor, are advancing steadily, continuously contributing to regional connectivity.
The scale of China-ASEAN trade and investment cooperation has continued to expand, achieving a historic breakthrough in being each other's largest trading partners, and the cumulative two-way investment has exceeded the US$200 billion mark.
The “Belt and Road” cooperation has demonstrated strong resilience and vigorous vitality, and has provided important assistance for ASEAN countries to resist the impact of the epidemic, accelerate economic recovery, and promote the well-being of the people.
RCEP and the "Belt and Road" can complement each other and promote each other.
The joint construction of the “Belt and Road” has deepened the economic and trade cooperation between China and RCEP-related member states, and has become an important factor for the successful signing of RCEP.
Both RCEP and the "One Belt, One Road" initiative advocate free trade and multilateral trade. Both play to their superimposed benefits, which can speed up the process of regional economic integration and jointly maintain the openness, security and stability of the global industrial chain and supply chain.
Create a more exciting China-ASEAN relationship for the next 30 years
Xiao Lianbing:
2021 is the 30th anniversary of the establishment of the dialogue relationship between China and ASEAN. What are your comments and prospects for the relationship between the two parties?
Do you have any thoughts and suggestions on promoting the building of a closer China-ASEAN community with a shared future?
Lin Yuhui: The
30th anniversary of the establishment of the ASEAN-China dialogue relationship in 2021 is an important milestone in the relationship between the two sides.
Over the past 30 years, bilateral cooperation in political, security, economic, social, cultural and other fields has continued to consolidate and expand.
In response to the new crown pneumonia epidemic, ASEAN and China actively cooperate and support each other.
China has provided various types of support and assistance to ASEAN and its member states, which has alleviated the negative impact of the epidemic.
China has also supplied sufficient vaccines to ASEAN, which has accelerated the resumption of work and production in various fields.
For post-epidemic recovery, ASEAN looks forward to China's support, including assistance in implementing the "ASEAN Comprehensive Recovery Framework."
In terms of economic cooperation, ASEAN and China can continue to explore ways to increase the degree of regional economic integration in various fields.
In the field of digital economy, it includes data governance, cross-border data circulation, network security and e-commerce; in the field of sustainable development, it includes energy transition, technology transfer, carbon market development and circular economy supply chain.
ASEAN and China agreed to strengthen cooperation in more new areas, such as innovation, technology, digital economy, interconnection, smart cities and new energy.
2021 is the ASEAN-China sustainable development cooperation year, and now the cooperation year activities have been extended to 2022.
In addition, the cultural exchanges and cultural ties between ASEAN and China have continued to strengthen.
A strong evidence of the vitality of bilateral cultural exchanges is the increasing interest of the people of ASEAN and China in exploring and understanding each other’s cultures.
In 2019, personnel exchanges between the two sides reached 65 million, and China is the largest source of tourists in the ASEAN region.
Looking forward to the future, the two sides should continue to strengthen cooperation in education and youth, and strengthen collaboration in information fields such as new media and technology, and establish a bond of friendship between future generations.
As ASEAN prepares to reopen to international tourists, we deepen our interconnection and cooperation with China and launch the "ASEAN Tourism Digital Platform Project" to promote Southeast Asia as a tourist destination favored by Chinese tourists.
Over the past 30 years, the ASEAN-China partnership has developed into one of the most substantial and dynamic partnerships in the region. It not only benefits bilateral interests, but also makes positive contributions to regional peace, stability and prosperity.
Looking to the future, the leaders of our two sides jointly announced the establishment of the ASEAN-China comprehensive strategic partnership at the 30th anniversary of the establishment of the dialogue relationship between the two sides. This marks a new milestone. Both parties need to redouble their efforts to make this partnership more meaningful. More substantive and mutually beneficial.
The joint statement adopted in the commemoration of the summit also provides guidance and direction for the promotion of the ASEAN-China comprehensive strategic partnership and the promotion of peace, security, prosperity and sustainable development in the region.
We look forward to translating the leaders’ promises into concrete actions.
Deng Xijun:
Since China and ASEAN started the dialogue process in 1991, the relationship between the two sides has continuously achieved leapfrog development and has become the most successful model of cooperation in the Asia-Pacific region.
The two sides uphold mutual respect, good-neighborliness and friendship, and properly resolve differences through dialogue and negotiation; focus on mutually beneficial cooperation, development and win-win, and build the largest free trade zone among developing countries, with fruitful cooperation in various fields; and help each other in the face of crises and challenges and overcome difficulties together , The sense of common destiny and the friendship between brothers and partners have become more deeply rooted in the hearts of the people.
After 30 years of development, China and ASEAN have become each other's largest trading partners, the most meaningful cooperation partners, and the most dynamic strategic partners, and have become an important pillar of regional prosperity and stability.
When President Xi Jinping visited Indonesia in 2013, he proposed the goal of building a closer China-ASEAN community with a shared future, and drew a blueprint for the development of bilateral relations.
Not long ago, China and ASEAN held a commemorative summit for the 30th anniversary of the establishment of dialogue relations. President Xi Jinping and leaders of ASEAN countries formally announced the establishment of a comprehensive strategic partnership and put forward the vision of building a "peace, tranquility, prosperity, beauty and friendly homeland" to develop the relationship between the two parties. Further planning the direction and path.
Looking to the future, we should focus on doing a good job in several areas: First, building a community of peace and security.
Intensify high-level exchanges and communication at all levels, deepen strategic mutual trust, expand defense security and non-traditional security cooperation, and maintain peace and stability in the South China Sea.
Uphold the spirit of East Asian cooperation, practice true multilateralism, and promote international fairness.
Priority should be given to strengthening anti-epidemic cooperation, narrowing the “vaccine gap”, improving the construction of the regional public health system, and building a strong health and safety barrier.
The second is to build a community of development and prosperity.
Strengthen the alignment of development strategies, promote high-quality co-construction of the "Belt and Road", and expand cooperation for a win-win situation.
Fully release the effective implementation dividend of RCEP, start the construction of version 3.0 of the China-ASEAN Free Trade Area as soon as possible, and deepen cooperation in new areas such as digital and green.
Implement global development initiatives, enhance sustainable development cooperation, and form a cooperation circle for common development.
The third is to build a people-to-people community.
Deepen exchanges and cooperation in the fields of culture, education, tourism, think tanks, media, and youth, and promote the integration of people's hearts.
Expand exchanges and mutual learning among civilizations, promote Asian values, and build an inclusive, symbiotic, harmonious and harmonious family.
Standing at a new historical starting point, we are willing to work with ASEAN to take the opportunity of establishing a comprehensive strategic partnership to promote the quality and upgrade of all-round cooperation, help build a closer community of shared future, and create a more exciting relationship between the two sides for the next 30 years.
(Assisted by the Chinese delegation to ASEAN, translated by Wang Peiyao, International Exchange, Cooperation and Communication Center of Guangming Daily)