China's largest land fruit import and export ports - Guangxi Pingxiang Friendship Pass port has been busy recently, loaded with ASEAN countries, durian, mangosteen and other agricultural products trucks to and from, are sending these products to all parts of China. 2023 the first 11 months, China from Thailand, Vietnam and other RCEP member countries, the total amount of imports of fresh durian 46.61 billion yuan, which is 1.7 times more than the whole year of 2021 before the agreement came into effect; China's total import and export to the other 14 member countries of the RCEP amounted to 12.6 trillion yuan in 2023, an increase of 5.3% compared with 2021 before the agreement came into effect....... RCEP ushered in the two-year anniversary of its effective implementation a few days ago. Over the past two years, RCEP has fully released policy dividends, intra-regional trade and investment has flourished, the industrial chain and supply chain have become more closely linked, and the vitality and resilience of regional economic growth have been increasing.

Injecting new momentum into regional trade and investment

Injecting new kinetic energy for regional trade and investment growth

"RCEP is a comprehensive, modern, high-quality and mutually beneficial large-scale free trade agreement covering all aspects of trade and investment liberalization and facilitation." Zhai Kun, vice president of the Institute of Regional and Country Studies at Peking University and professor at the School of International Relations at Peking University, said in an interview with the China Trade News reporter that over the past two years, RCEP has pushed the cost of trade in goods among its members down significantly, brought multiple benefits to cross-border investment for enterprises, and significantly boosted confidence in the regional economic recovery, and injected a new kinetic force into the growth of regional trade and investment.

Ltd. is the Huangshi Customs district to processing trade-based export garment industry leader, more than 90% of customers from Japan. after the implementation of RCEP, the company makes full use of RCEP related rules of origin, rational arrangement of the regional industrial chain and supply chain layout. "Take our blended women's skirts exported to Japan as an example, with the RCEP certificate of origin issued by the Customs, the tax rate was reduced from the initial 10% to 8.2%, and then to 7.3% on April 1, 2023." The person in charge of foreign trade of the company's apparel division introduced that after RCEP came into effect, the competitive advantages of the enterprise were further emphasized and the company's order volume steadily increased. The enterprise's RCEP visa value totaled 230 million yuan over the past two years, and the importing country's tariff reduction amounted to 4.32 million yuan. This is precisely a microcosm of the benefits that tariff concessions, rules of origin and other measures under the RCEP framework have brought to enterprises.

"It can be seen that the RCEP members comply with the cumulative rules of origin, and the effectiveness of benefiting enterprises continues to be released." Zhai Kun said.

According to Zhai Kun, RCEP has provided useful support to the multilateral trading system, as well as useful experience in the evolution and upgrading of the global trading system by promoting trade liberalization, harmonizing with the multilateral trading system, and advocating sustainable and inclusive development, etc. RCEP has also facilitated the regional digital transformation and green transformation, and RCEP has promoted the regional digital economy and green economy development through the setting up of digital trade rules and the establishment of a cooperation mechanism for sustainable development. RCEP has promoted the development of the regional digital economy and green economy through the establishment of digital trade rules and sustainable development cooperation mechanisms.

Intra-regional Industry Chain Supply Chain

Cooperation continues to advance

It is worth noting that in the first 11 months of 2023, China's exports of intermediate goods to RCEP member countries increased by 17.4% compared to the same period in 2021, making it the largest trader of intermediate goods in the RCEP region.

"The growth in trade in intermediate goods indicates that intra-regional industrial chain supply chain cooperation continues to advance." Zhai Kun said that RCEP's high level of liberalization initiatives not only facilitates the creation and transfer of final goods trade, but also removes obstacles to the circulation of intermediate goods in the region, reduces the cost of production and circulation, and advances the development of intra-regional trade in intermediate goods.RCEP's relaxation of market access in areas such as investment has also facilitated the free flow of factors of production within the region, accelerating the in-depth integration and fine-tuning of the supply chain and value chain within the region. Development.

Under the framework of RCEP, in order to further expand the trade of intermediate goods between China and RCEP member countries, Zhai Kun believes that, first of all, the level of intra-regional connectivity should be continuously enhanced. Continuously strengthen China's transportation and logistics connectivity with RCEP member countries, promote multimodal transportation by sea, land and pipeline, and effectively respond to supply chain shocks. Strengthen information sharing, and vigorously guarantee the reasonable flow and smooth flow of people, capital and information among regions and industries, so as to ensure the smooth flow of supply chain.

Secondly, through the dislocation of development to reduce competition, enhance complementarity, the formation of mutually beneficial economic and trade pattern. In terms of cooperation with Japan and South Korea, we can reduce overlapping through differentiation in industrial and product structures and comparative advantages in production links based on China's advantageous conditions and country-specific characteristics. In cooperation with ASEAN countries, China's low-end industries can be transferred to ASEAN countries with lower labor costs in an orderly manner in order to avoid low-grade competition and reduce the pressure of rising domestic labor costs and environmental regulations. In addition, it is important to emphasize the importance of in-depth provisions of free trade agreements and measures within the borders for Asia and the Pacific.