Since the formal entry into force and implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP), especially since its full entry into force for 15 signatory countries in June this year, China attaches great importance to and vigorously promotes the implementation of RCEP. This not only promotes the cooperation in goods trade and investment between China and RCEP partners, but also plays a positive role in stabilizing foreign investment, foreign trade, and the chain.
As the world’s most populous, largest economic and trade agreement with the greatest potential for development, RCEP’s effective implementation has brought significant opportunities for China’s development. Faced with the complex and severe international situation, RCEP has provided strong support for China to build a high-level new pattern of opening up to the outside world, as well as for enterprises to expand export markets, increase trade opportunities, improve business environment, and reduce intermediate and final product trade costs.
From the perspective of goods trade, RCEP has become an important force driving China’s foreign trade growth. In 2022, China’s trade growth with RCEP partners contributed 28.8% to the growth of foreign trade that year, with exports to RCEP partners contributing 50.8% to the growth of foreign trade exports that year. Moreover, the central and western regions have shown stronger growth vitality. Last year, the growth rate of goods trade between the central region and RCEP partners was 13.8 percentage points higher than that of the eastern region, demonstrating the important promoting role of RCEP in the coordinated development of China’s regional economy.
From the perspective of investment cooperation, RCEP has become an important support for stabilizing foreign investment in China. In 2022, China’s actual use of foreign investment from RCEP partners reached 23.53 billion US dollars, a year-on-year increase of 24.8%, far higher than the 9% growth rate of world investment in China. The contribution rate of RCEP region to China’s actual utilization of foreign investment growth reached 29.9%, an increase of 17.7 percentage points compared to 2021. The RCEP region is also a hot spot for Chinese enterprises to invest abroad. In 2022, China’s total non-financial direct investment in RCEP partners was 17.96 billion US dollars, a net increase of about 2.5 billion US dollars compared to the previous year, a year-on-year increase of 18.9%, accounting for 15.4% of China’s outward non-financial direct investment, an increase of 5 percentage points compared to the previous year.
RCEP also plays a prominent role in stabilizing and fixing chains. RCEP has promoted cooperation between China and ASEAN countries such as Vietnam and Malaysia, as well as members such as Japan and South Korea in various fields such as electronic products, new energy products, automobiles, textiles, etc. It has formed a positive interaction between trade and investment, and played a positive role in stabilizing and strengthening China’s industrial and supply chains. In 2022, China’s intermediate goods trade within the RCEP region reached 1.3 trillion US dollars, accounting for 64.9% of the regional trade with RCEP and 33.8% of the world’s intermediate goods trade.
In addition, rules such as RCEP e-commerce and trade facilitation provide a favorable development environment for China to expand digital economy cooperation with RCEP partners. Cross border e-commerce has become an important new trade model between China and RCEP partners, forming a new growth pole for regional trade and further increasing consumer welfare.
During the 20th China ASEAN Expo, the Research Institute of the Ministry of Commerce released the “RCEP Regional Cooperation Effectiveness and Development Prospects Report 2023″, stating that since the implementation of RCEP, the industrial chain and supply chain cooperation relationships between members have shown strong resilience, promoting regional economic and trade cooperation and the initial release of economic growth dividends. Not only have ASEAN and other RCEP members benefited significantly, but also have had positive spillover and demonstration effects, Becoming a favorable factor driving global trade and investment growth under multiple crises.
At present, the global economic development is facing significant downward pressure, and the intensification of geopolitical risks and uncertainties in the surrounding areas poses great challenges to regional cooperation. However, the overall growth trend of the RCEP regional economy remains good, and there is still great potential for growth in the future. All members need to jointly manage and utilize the open cooperation platform of RCEP, fully unleash the dividends of RCEP openness, and make greater contributions to regional economic growth.
Post time: Oct-16-2023