RCEP to boost new development pattern, push China's cross-border e-com

30 Dec '21

2 min read

Pic: Lakshmiprasad S | Dreamstime.com

For China, the Regional Comprehensive Economic Partnership (RCEP) agreement will facilitate establishment of the new dual-circulation development pattern, which takes the domestic market as the mainstay while letting domestic and foreign markets reinforce each other, as it contains high-level opening-up commitments by member countries for both trade and investment.

The full implementation of the agreement will bring zero-tariff treatment to nearly 30 per cent of Chinese exports, according to official Chinese media. The agreement will also bring more opportunities for Chinese enterprises to invest in related economies, according to estimates by the ministry of commerce.

In 2020, China's exports to RCEP members exceeded $700 billion, which accounted for 27 per cent of the nation's total exports. China's imports from the RCEP region were worth around $778 billion, or about 38 per cent of the country’s total imports.

The implementation of the RCEP agreement will also reshape the economic relations between China and Japan, thanks to the formation of direct free-trade relations between the two for the first time, Chinese media reported.

Under the agreement, ASEAN member states will significantly expand duty-free treatment to Chinese products as well.

Chinese enterprises will also be able to lower import costs related to advanced technology, key equipment, key components, consumer goods, pharmaceuticals and medical devices, and production services like design, research and development, energy conservation and environmental protection, to better meet the domestic market's needs for consumption updates.

RCEP’s implementation will usher in a new wave of growth for China's cross-border e-commerce sector as well, according to experts.

Fibre2Fashion News Desk (DS)

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