How does RCEP affect China's foreign trade?

RCEP will create a fair, transparent, stable and predictable policy environment for our country's foreign trade and related enterprises. RCEP members can take a series of actions such as mutual implementation of tariff concessions, opening up market access, removing barriers affect trade, and simplifying Customs clearance procedures. It will further reduce the cost of trade in the RCEP region, promote trade facilitation, and play a positive role in promoting the growth of trade and investment among countries in the region.

 For the Chinese side, it is conducive to promoting import diversification, stimulating import potential, optimizing the import structure, and expanding the import of advanced technology, equipment and parts, as well as the import of domestically demanded resource commodities. At the same time, it will help stabilize China's exports to countries in the region. In addition, RCEP is also conducive to the layout of enterprises in the region, better allocation of factor resources in the region, and further enhance the resilience of the industrial and supply chains in the region.

The principle of accumulation of regions of origin: the final zero-tariff products in goods trade exceed 90% as a whole and the implementation of uniform rules such as rules of origin and Customs procedures. It will significantly reduce trade and investment costs within the RCEP region.

Fifteen member countries made bilateral bids in pairs and made arrangements for trade liberalization. Through immediate tax cuts and gradual tax cuts within 10 years, zero tariffs were finally achieved for more than 90% of the goods traded products as a whole.

For example, a product produced in China and exported to ASEAN countries must meet the rules of origin in order to enjoy the tax-free treatment of future imports from ASEAN, for example, it needs to increase by 35% before you can export to Indonesia and enjoy zero tariffs.Now with RCEP, for example, if we import a component from South Korea and then go to China, our country may increase its value by 20%, then South Korea increase its value by 20%, and it adds up to 35%. If we export to Indonesia, we can enjoy Indonesia’s zero tariff treatment. This is the beauty of RCEP, it will promote the stability of the supply chain of our East Asia industrial chain.