July 12, 2022
BEIJING – With deal, Asia-Pacific economies create largest free trade bloc
According to trade experts and business leaders, Chinese enterprises should further exploit the potential of the Regional Comprehensive Economic Partnership Agreement to improve their operations and move up the industrial value chain for high-quality development.
Officially entering into force on January 1, the agreement brought together 15 Asia-Pacific economies, including the 10 members of the Association of Southeast Asian Nations, to create the world’s largest free trade bloc. world, promoting regional economic integration through tariff concessions and other trade and investment liberalization. and facilitating measures.
According to Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, with the implementation of the RCEP agreement, Chinese enterprises are likely to intensify cross-border cooperation on industrial capacity with their counterparts in China. other RCEP members, as well as strengthen RCEP Market Research to develop products and services based on different market needs.
“China and other RCEP countries already have a high level of manufacturing cooperation, but Chinese manufacturing companies in the past have mainly built their presence in the region by exporting products, rather than through other means. “, did he declare.
“The ongoing upgrades of Chinese manufacturing industries require the formation of new competitiveness of Chinese enterprises, and to this end, coordination of market regulation among RCEP members will play an important and positive role that will facilitate progress.” technology of Chinese enterprises and their market orientation. novelties,” he added.
Under the rules of the trade pact, nearly 90% of tariffs on goods traded in the region will be removed over a 20-year period. In addition, the trade pact allows products to have only 40 percent of their value added in the region to qualify for reduced or zero tariffs, which analysts say will accelerate the integration of regional industrial chains.
Wang Cheng, chairman of Anhui Conch Group, a Chinese cement and building materials maker, told a recent forum hosted by the Beijing-based industrial cooperation committee RCEP that Anhui Conch plans to invest about 200 billion yuan ($29.82 billion) in the RCEP region. within five years, including doubling its investment in RCEP countries outside China to 30 billion yuan.
The company also aims to build a highly efficient supply chain in the region, to facilitate the globalization strategies of other Chinese companies in high-end sectors such as smart manufacturing, new energy and new materials, and the environmental Protection.
Wu Dazhi, chairman of Guangdong Zhida-Walking New Material Technology Co Ltd, believes the trade pact will spur Chinese enterprises to use division of labor to carry out industrial cooperation programs in the region and pursue a better position in the world. industrial value chain.
“This is all the more important as Chinese companies face growing competition from some neighboring countries in low-end manufacturing sectors, while the wave of protectionism around the world is also rising,” said Wu, who is also president of the Guangzhou Leather & Footwear Association.
“Chinese products have a good reputation for quality, and fiercer competition in global markets will catalyze the transformation of Chinese companies into higher value-added sectors, as those that do not adapt will be squeezed out of the markets,” he said. .
According to Wu, although labor costs in China are higher than in some neighboring countries, such as Vietnam, China’s pool of high-end talent and skilled workers is still an advantage for Chinese companies to upgrade. .
The RCEP, which accelerates the integration of regional industrial chains, will help unleash the overall advantages of Chinese enterprises in industrial and supply chains and help them better coordinate the use of factors of production across the region, said- he indicated.
Wu’s company cooperated with investors from regions outside the Chinese mainland to first establish a business entity in Hong Kong, which then invested in Vietnam, in accordance with Vietnamese laws. It also exports services to the region, thanks to the company’s strengths in industrial and supply chain management, technology and talent.