World

RCEP a recipe for China-ASEAN success

BUSINESS leaders from China and the Association of Southeast Asian Nations say they are looking to further strengthen their collaboration and seize the business opportunities brought by the Regional Comprehensive Economic Partnership agreement.

They said that in Nanning, Guangxi Zhuang autonomous region, during the 19th China-ASEAN Expo, whose theme was sharing new opportunities from the RCEP agreement and jointly advancing version 3.0 of the China-ASEAN Free Trade Area.

The expo, held from September 16 to 19, would help reinforce collaboration on the two sides' industrial and supply chains and enhance overall regional competitiveness, they said.

Last year China and ASEAN upgraded their relations to a comprehensive strategic partnership, and the RCEP agreement took effect on January 1.

A total of 1,653 companies from 40 countries took part in the event, including Chinese companies such as Sinopec and China COSCO Shipping Corp, as well as other companies such as the Malaysian State-owned energy group Petronas, Pacific International Lines (PTE) Ltd of Singapore and Mitsubishi Group of Japan, the Ministry of Commerce said.

A total of 267 domestic and international deals were signed, with investment of more than 400 billion yuan ($57 billion), up 37 per cent compared with last year, said Wei Zhaohui, secretary-general of the expo's secretariat, at a news conference.

A number of high-level forums were also held at the expo, including RCEP-related events.

Malaysia served as the country of honour this year and its ambassador to China, Raja Nushirwan Zainal Abidin, said relations between Malaysia and China are "very strong".

The ambassador highlighted that trade between the two countries amounted to $176.8 billion in 2021, a year-on-year increase of 34.5 per cent despite the pandemic.

China COSCO Shipping Corp, China's largest shipping company by sales revenue, said that it has enjoyed continuous growth in trade with ASEAN since the RCEP agreement took effect.

"Shipping is a barometer of trade worldwide," said Ge Heyue, deputy general manager of COSCO Shipping Lines Co Ltd.

"The trade growth between China and ASEAN has been a highlight for us in a time when the global marine supply chain is greatly challenged by the pandemic. We have invested huge resources in Southeast Asia. We are firmly confident about the trade growth potential between China and ASEAN against the global economic slowdown."

China has been ASEAN's largest trading partner for 13 consecutive years, and ASEAN became China's top trading partner in 2020, surpassing the European Union, the Ministry of Commerce said.

From January to August the value of trade between China and ASEAN was $627.6 billion, 13.3 per cent more than in the corresponding period last year, and trade between China and other RCEP members grew 7.5 per cent on a yearly basis, the General Administration of Customs said.

The RCEP comprises 15 Asia-Pacific countries, including the 10 ASEAN member states. The pact is expected to eliminate as much as 90 per cent of the tariffs on goods traded among its members over the next 20 years.

ASEAN Secretary-General Dato Lim Jock Hoi said the RCEP could help mitigate supply chain risks and help build a business environment for the region that could become more resilient.

Clare Fearnley, New Zealand's ambassador to China, said that as New Zealand recovers from the impact of COVID-19 and seizes new opportunities for exports and investment, the RCEP is a significant step forward for recovery and prosperity.

"The RCEP delivers a single set of rules covering all 15 markets, making trade simpler and reducing compliance costs for exporters, and fostering regional connectivity," Fearnley said.

Xinhua contributed to this story.

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