Authors: Huang Dahui, Shen Chuanxin
In 2012, ten ASEAN countries launched the Regional Comprehensive Economic Partnership (RCEP).
On November 15, 2020, the ten ASEAN countries and 15 Asia-Pacific countries including China, Japan, South Korea, Australia and New Zealand formally signed the agreement.
On November 2, 2021, RCEP reached the threshold for the entry into force of the agreement.
On January 1, 2022, the agreement will officially enter into force for the 10 countries that have submitted their instruments of approval.
RCEP covers a population of about 2.27 billion, GDP accounts for about 33% of the world, and exports account for 30% of the world.
As a free trade agreement with the largest participating population, the most diverse member structure, the largest economic and trade scale, and the most potential for development in the world, the entry into force of RCEP has created new opportunities for the deepening of regional cooperation and injected a strong impetus into the opening and integration of the world economy. , providing a powerful engine for the continued prosperity of China's economy.
Deepen economic opening and integration, and promote regional cooperation to a new level
The implementation of RCEP marks the official launch of the world's largest free trade zone, which will promote regional integration to a higher level.
First, the effective implementation of RCEP will help create new growth points for regional economic and trade cooperation and deepen the opening and integration of East Asian regional economies.
From the perspective of economic and trade cooperation, the effective implementation of RCEP has improved the degree of liberalization and facilitation of regional trade and investment, intensified economic and trade and investment exchanges between countries in the region, and pressed the "acceleration button" to expand the scale of regional trade and investment.
Specifically, in the field of trade, on the one hand, after the official entry into force of RCEP, the tariffs on more than 90% of the trade in goods among the approved member states will eventually become zero, which injects positive energy into the prosperity and development of regional trade in goods; on the other hand , the existing 15 member states of RCEP have all made open commitments in service trade that are higher than the level of the original "10+1" free trade agreement, which has effectively promoted the improvement and upgrading of service trade in the region.
In the field of investment, RCEP clarifies the content of prohibited performance requirements, adopts the negative list model to make relevant commitments to non-service investment, and strengthens investment protection, which is conducive to promoting continuous and fruitful results of regional investment.
On January 6, the China-Laos Railway (Huaihua-Vientiane) international freight train bound for Vientiane, Laos departed from the Huaihua International Dry Port in Hunan.
Xinhua News Agency
From the perspective of the operation of the industrial chain and supply chain, the effective implementation of RCEP has increased the stickiness of the industrial chain and supply chain, expanded the regional industrial chain supply chain network, and made a positive contribution to maintaining the smooth and stable supply chain of the regional industrial chain.
At present, the great changes unseen in a century and the epidemic of the century are intertwined, and the regional and even global industrial and supply chains are facing unprecedented challenges.
Under such a severe situation, the entry into force of RCEP and the official launch of the world's largest free trade zone will promote the smooth and orderly circulation of various economic factors, such as personnel and goods, strengthen the production division and cooperation among countries in the region, and effectively help It ensures the security, stability and accelerated integration of the regional industrial chain and supply chain.
Secondly, the effective implementation of RCEP will help to enhance the economic connectivity of the Asia-Pacific region and open a new stage of regional integration and development in the Asia-Pacific region.
As the world's largest free trade agreement, the entry into force of RCEP as scheduled will speed up the negotiation process of the China-Japan-Korea Free Trade Area and boost confidence in the final conclusion of the China-Japan-Korea Free Trade Agreement.
Through RCEP, China and Japan, China and South Korea have established free trade partnerships for the first time.
This will stimulate the potential of practical cooperation among the three countries, expand the space for mutually beneficial cooperation, and create favorable conditions for the final and smooth conclusion of the China-Japan-Korea Free Trade Agreement.
At the same time, RCEP is also a modern, comprehensive, high-quality and reciprocal new free trade agreement signed by 15 countries in the Asia-Pacific region, covering about one-third of the world's economic volume, and is regarded as leading the integration of the Asia-Pacific region toward An important force for higher quality and deeper direction.
After the implementation of RCEP, it will be beneficial to the implementation of the APEC blueprint for connectivity, the improvement of the level of cooperation in the Asia-Pacific region, and the construction of the Asia-Pacific Free Trade Area, providing strong support for building an Asia-Pacific community with a shared future that is open, inclusive, innovative, growth, connectivity, and win-win cooperation. .
Embrace multilateralism and free trade, and create a new situation for global economic cooperation
To help economic recovery in the post-epidemic era, improve the global economic governance system, and embrace multilateralism and free trade, the entry into force of RCEP is of great significance to world development.
First of all, looking at the world situation in 2021, the new crown pneumonia epidemic has been delayed and repeated, the impact of the epidemic continues to spread, the industrial chains of various countries have suffered a huge impact, and the global economic recovery has been hindered.
At the same time, the geo-strategic thinking of the Cold War is undermining the general trend of world economic and trade cooperation and hindering global economic development.
According to the forecast of an international think tank, by 2030, RCEP is expected to drive a net increase of 519 billion US dollars in exports of member countries and a net increase of 186 billion US dollars in national income.
By promoting trade liberalization, investment facilitation and optimization of the global supply chain, RCEP will inject strong impetus into the global economic recovery in the post-epidemic era, and also escort the world economy to avoid risks and achieve stable development.
Secondly, RCEP covers multiple economies at different stages of development, forming a benign interaction and win-win cooperation between emerging economies and developed economies, and has advantages that are incomparable to other regional agreements.
In addition to unified tariff reductions, RCEP's innovations in terms of "Rules of Origin Accumulation", "Investment Negative List" and "Ratchet Mechanism" also set a new model for global economic and trade cooperation.
At present, the contradiction that the global economic governance system does not adapt to the development of the international situation has intensified. RCEP will promote the development of the global economic governance system in a more just, reasonable, and mutually beneficial direction.
Third, RCEP fully takes into account the huge differences in economic development levels among member states. It is the first regional economic and trade agreement to provide special and differential treatment clauses in the dispute settlement mechanism, reflecting the development spirit of fairness, justice, inclusiveness and mutual benefit.
There is a fierce struggle between two orientations in the world today.
One is to engage in group confrontation with isolation and isolation, dominant monopoly, and protectionism;
History and practical experience tell us that openness rather than isolation, integration rather than decoupling, and mutual benefit rather than self-interest are the magic weapon for us to overcome difficulties together, and the right way to guide the healthy development of the global economy.
The signing of RCEP reflects the winning belief of all member states in supporting multilateralism and free trade.
As Wang Wenbin, spokesperson of the Ministry of Foreign Affairs, emphasized, the implementation of RCEP is a major victory for multilateralism and free trade.
In the face of turbulent changes unseen in a century, the power of international progress and cooperation is an irresistible trend.
Facilitate the dual-cycle development pattern and promote the formation of a new open economy system
In order to stabilize the environment for the external circulation and increase the power for the internal circulation, the entry into force of RCEP will promote the establishment of a dual-circulation development pattern in China and the formation of a new system of a higher-level open economy.
First of all, RCEP will help the construction and formation of China's dual-cycle development pattern.
On the one hand, RCEP connects resources and markets in the region, opens up supply and demand at home and abroad, and improves the stability of the regional economic development environment by building integrated rules to escort the smooth operation of the external circulation.
RCEP member countries are geographically adjacent, with diverse levels of development, different resource endowments, complementary industrial advantages, and huge market potential.
These favorable conditions can help my country reduce its dependence on the United States and other western developed economies, enhance the security of my country's industrial chain and supply chain, and also improve my country's ability to resist the risks of international political and economic turmoil.
On the other hand, RCEP drives Chinese enterprises to fully integrate into the big market, injecting new impetus into the internal circulation.
Through tariff concessions, unified rules of origin and efficient facilitation measures, the liquidity of commodities and manufacturing raw materials in the region has been enhanced, the transaction costs of enterprises have been reduced, and the international competitiveness has been enhanced.
A high level of opening requires Chinese enterprises to directly benchmark against international advanced enterprises, connect with international technical standards, improve product quality, and conquer key technologies, so as to continuously improve their ability to participate in international cooperation and competition.
This process will also promote my country's manufacturing industry to move towards the middle and high end, and promote the upgrading of the industrial structure.
Container loading and unloading operations are taking place at the Port of Brunei's Muara terminal, photographed on January 1.
The Port of Mora Brunei is operated by a joint venture between China and Brunei, the Port of Mora Limited.
Xinhua News Agency
Second, the entry into force of RCEP will promote the formation of a new system of a higher level of open economy.
On the one hand, investment liberalization and trade facilitation will enhance my country's openness and promote economic growth.
The opening of investment can not only stabilize existing domestic foreign capital and bring in more foreign capital, but also help domestic capital to better go out and expand and optimize the layout of the industrial chain.
The commodity market is open, and enterprises can obtain higher-quality equipment and raw materials at a lower cost, improve product quality, meet the needs of domestic consumption upgrades, and improve the overseas reputation of Chinese products.
According to the "Assessment Report on the Impact of RCEP on Regional Economy" issued by the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, by 2035, RCEP will increase China's exports and imports to US$315.4 billion and US$306.8 billion, respectively, and economic welfare will increase cumulatively. $99.6 billion.
On the other hand, by raising the level of openness, RCEP will promote technological innovation and institutional innovation in China.
RCEP covers new fields such as e-commerce and artificial intelligence, and conducts new cooperation in the fields of global digital and green governance.
Technological innovation and digital transformation promote the integration of China and ASEAN and other countries in the era of digital economy, and also promote the further innovation of Chinese technology.
RCEP's attempt to make new international trade rules makes China more adaptable to the new changes in international trade rules.
These high-standard rules not only reflect China's determination to deepen opening up and confidence in promoting trade liberalization and globalization, but also provide my country with opportunities to adapt to new rules, accumulate experience in formulating new rules, and point out future institutional innovations. direction.
In addition, the success of RCEP will also lay a solid foundation for China's next step to participate in the higher-standard Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Looking forward to the future, under the superimposed resonance of the century-old changes and the epidemic of the century, RCEP will always deepen economic opening and integration, and promote regional cooperation to a new level; embrace multilateralism and free trade, and create a new situation for global economic cooperation; Promote the formation of a new system of open economy.
As one of the most active participants and contributors to RCEP, China will firmly support the centrality of ASEAN, and work hand in hand with member states to create a new chapter of prosperity and beauty.
(Author: School of International Relations, Renmin University of China)
"Guangming Daily" (08 edition on January 16, 2022)