(Economic Observation) The world's largest free trade zone sets sail: How will RCEP improve China's openness?

　　China News Service, Beijing, January 1st (Reporter Liu Liang) On January 1, 2022, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) formally came into effect, marking the world’s most populous, largest economic and trade scale, and the most potential for development. The free trade zone officially set sail.

As a new benchmark for multilateral economic and trade cooperation and opening up, how will RCEP inject new impetus into China's expansion of opening up?

　　After 8 years of negotiations, RCEP was formally signed on November 15, 2020. 15 member states including China, 10 ASEAN countries, Japan, South Korea, Australia, and New Zealand have witnessed this important historical moment.

The picture shows the Guigang Port from above.

Photo by Xiong Yaozhang issued by China News Service

　　Yang Zhengwei, deputy director of the International Department of the Ministry of Commerce of China, pointed out in an interview with China News Agency and other media on the 1st that starting from the 1st, China will fully implement all the commitments and obligations of the RCEP agreement.

In terms of market opening, the immediate zero tariff rates between China and ASEAN, Australia and New Zealand all exceed 65%.

The immediate zero tariff rates between China and South Korea are 39% and 50% respectively.

China and Japan have established a new free trade relationship, and the mutual immediate zero tariff ratio has reached 25% and 57% respectively.

　　"Based on a large number of immediate zero-tariff products, RCEP members will basically realize that 90% of their products enjoy zero tariffs in about 10 years." Yang Zhengwei said.

　　China's participation in RCEP has fully demonstrated its determination to open up.

It is understood that the opening level of RCEP in various fields such as trade in goods and service investment is significantly higher than the level of openness promised by China in the World Trade Organization.

　　For example, in terms of trade in goods, the zero-tariff level has increased from 8% to 90%, covering China’s trade volume of approximately US$1.6 trillion; the number of open service trade sectors has increased from 100 sectors to 122 when China’s entry into the WTO, an increase of 37%. The level of commitment of each department.

The data picture shows the Haitian Container Terminal of Xiamen Port.

Photo by China News Agency reporter Wang Dongming

　　In terms of investment, all member states have adopted a negative list to make commitments for the opening up of non-service sector investment.

This is the first time that China has included a negative list of investment in non-service industries in an international agreement. It has made high-level liberalization commitments in the five sectors of manufacturing, agriculture, forestry, fisheries, and mining, and has improved the transparency of investment policies.

　　In recent years, China has made the deepening of a high-level opening up to the outside world an important content.

The entry into force of RCEP also means that China's opening to the outside world will usher in new opportunities.

　　Yuan Bo, deputy director and researcher of the Institute of Asian Studies of the Ministry of Commerce, pointed out that the so-called high-level opening to the outside world not only means an increase in the level of openness in traditional fields such as trade in goods, service trade, and investment, but also in e-commerce, competition policy, and government. The opening up of procurement, intellectual property and other fields.

　　Taking the field of e-commerce as an example, RCEP includes provisions on electronic authentication and signature, online consumer protection, online personal information protection, network security, etc., as well as provisions on data flow and information storage, which is of pioneering significance.

　　For example, the agreement stipulates that RCEP members should recognize the legal effect of electronic signatures and recognize electronic authentication technology. This enables the signing of online contracts, the authorization of electronic payments, and the conclusion of online transactions to be fully protected and recognized by the agreement, which is an important part of e-commerce in the region. And the development and prosperity of digital trade provides an important guarantee.

The China-Laos Railway international freight trains operate at Meishan International Railway Port.

Photo by China News Agency reporter Liu Zhongjun

　　In addition, Yuan Bo pointed out that China’s simultaneous establishment of free trade ties with Japan and South Korea under the RCEP framework will not only lay the foundation for higher-level China-Japan-Korea free trade area negotiations, but also help China actively promote its participation in the CPTPP ("Comprehensive and Progressive" Trans-Pacific Partnership Agreement) and other higher standard free trade agreements.

　　According to Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, compared with China's existing free trade agreements, RCEP has obvious advantages in both openness and open areas.

The entry into force of RCEP will promote China to achieve a higher level of institutional opening, and better participate in the development of regional industrial chain supply chain integration and the construction of an integrated large market.

　　RCEP will also be a strong support in the process of China's construction of a new "dual cycle" development pattern.

　　The data shows that the total population of RCEP member countries is 2.27 billion, GDP is 26 trillion U.S. dollars, and the total export value is 5.5 trillion U.S. dollars, accounting for about 30% of the global total.

The huge economic volume and development space contained in this are self-evident.

　　Yuan Bo pointed out that expanding market access and facilitation measures will bring more distinctive products, high-quality services, and advanced technologies to countries in the region to better meet the needs of enterprise production progress and people's better life, and smooth the domestic cycle.

At the same time, the connectivity of the two international and domestic markets and two resources will also enable China to more effectively integrate into the global industrial chain, supply chain, and value chain, and promote industrial transformation and upgrading and high-quality economic development.

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