RCEP implementation for two years, benefiting regional cooperation and global economy

What have been the achievements of the Regional Comprehensive Economic Partnership (RCEP), which has been in effect for two years? What have China and its related member countries gained from dancing with RCEP over the past two years? The latest data released by the General Administration of Customs of China shows that in 2023, China's total imports and exports to the other 14 RCEP member countries amounted to 12.6 trillion yuan, an increase of 5.3% compared to 2021 before the agreement came into effect.
The industry believes that in the two years since the implementation of RCEP, China, as the largest economy among member countries, has benefited from the implementation of RCEP and is also an important contributor to RCEP cooperation, playing a positive role in promoting regional trade, investment, and economic growth. Over the past two years, with the joint efforts of all member countries, regional trade costs have significantly decreased, industrial and supply chain connections have become closer, and trade exchanges between members have become closer. The RCEP, the world's largest free trade zone, continues to inject momentum into regional economic cooperation and contributes to promoting the world economy to achieve restorative growth
Benefiting regional cooperation and global economy
Since the implementation of RCEP, it has brought tangible dividends and benefits to members and enterprises: on the one hand, the deepening of industrial and supply chain cooperation; On the other hand, from the perspective of policy dividend release, enterprises are clearly benefiting.
RCEP members are all important economic and trade partners of China. Customs data shows that in 2023, China's exports to other RCEP member countries amounted to 6.41 trillion yuan, accounting for 27% of China's exports, an increase of 1.1 percentage points from 2021. Among them, the export scale of equipment manufacturing industry has expanded by 32.8%, accounting for a 6.5 percentage point increase in China's exports to other RCEP member countries. Lithium batteries, automotive parts, and flat panel display modules have all maintained significant growth. During the same period, China imported 6.19 trillion yuan from other RCEP member countries, accounting for 34.4% of China's total import value. Among them, the import volume of energy products increased by 31.2% compared to 2021, and its proportion in China's energy product import volume increased by 2.5 percentage points to 32.4%.

The RCEP, combined with the effective bilateral free trade agreements between China and other members, has created favorable conditions for enterprises to better enjoy benefits. According to customs statistics, in 2023, the preferential imports under RCEP amounted to 90.52 billion yuan, with a tax reduction of 2.36 billion yuan. The main preferential imported goods were plastics and their products, machinery and their parts, organic chemicals, etc; Enjoy a preferential export of 2707 billion yuan, and enjoy a tariff reduction of 4.05 billion yuan from member countries. The main visa exported goods include inorganic chemicals, clothing and clothing accessories, plastics and their products, etc. 723 approved exporters in China have independently issued 12000 RCEP country of origin declarations, with a value of 10.18 billion yuan.

Industry analysis suggests that in the current context of sluggish global economic growth and severe challenges facing economic globalization, RCEP provides stability and certainty for regional and even global economies. The 2023 Regional Cooperation Effectiveness and Development Prospects Report released in September last year evaluated that since the implementation of RCEP, the industrial and supply chain cooperation relationships among members have shown strong resilience, promoting regional economic and trade cooperation and the initial release of economic growth dividends. Not only have RCEP members benefited significantly, but they have also generated positive spillover and demonstration effects, becoming a favorable factor driving global trade and investment growth under multiple crises. Faced with a complex and severe international situation, China's trade in goods with RCEP member countries has made steady progress and investment cooperation has shown outstanding performance, playing a positive promoting role in stabilizing foreign investment, foreign trade, and supply chains.
Multiple measures to promote high-quality implementation
Next, how can we further improve the high-quality implementation of RCEP and enable it to benefit all parties faster, better, and more comprehensively?
Yuan Bo, Director and Researcher of the Asia Institute of the Research Institute of the Ministry of Commerce, stated in an interview with the International Business Daily that firstly, promoting high-quality development of economic and trade cooperation between China and RCEP member countries. Further utilize the trade and investment liberalization and facilitation of RCEP, as well as the rules of origin, actively expand intermediate goods trade with RCEP member countries, deepen investment cooperation, and jointly build a mutually beneficial industrial and supply chain cooperation network. At the same time, further explore the potential for cooperation with RCEP member countries in areas such as service trade, e-commerce, digital trade, and green trade, and create new growth points for cooperation.
Secondly, collaborate to create an efficient RCEP public service system. Give full play to the role of platforms such as the China Free Trade Zone Service Network and various RCEP implementation and service institutions, especially providing sufficient information and consulting services for private and small and micro enterprises, strengthening public welfare training and industry docking, and guiding enterprises to fully utilize RCEP policies.
Once again, innovate and build a high-level RCEP cooperation platform carrier. Explore the establishment of RCEP demonstration zones and other platform carriers, increase reform efforts against rules and standards such as RCEP and CPTPP, optimize policy and institutional design, leverage the integration and synergy between RCEP and other economic and trade policies, promote the landing of high-quality RCEP cooperation projects and the development of RCEP cross-border advantageous industries, and play a demonstration and leading role in the high-quality implementation of RCEP.
Foreign Ministry spokesperson Mao Ning recently stated at a regular press conference that as the largest economy in RCEP, China has always adhered to the concept of open development and promoted high-quality implementation of RCEP. "We are willing to continue to work with all parties to comprehensively and high-quality implement RCEP, so that this world's largest free trade zone can continuously release dividends and achieve common development and prosperity for member countries."