RCEP to attract foreign firms to expand presence in China: CCPIT

RCEP will boost participation of Chinese firms in regional industrial and supply chain cooperation as the country is committed to building an open economy and ensuring the security and smooth flow of global supply chains, said CCPIT vice chairman Zhang Shaogang.

RCEP's cumulative rules of origin will help lower businesses' expenditures on tariffs, and expand the production and trade of intermediate goods in the region while pushing more multinational corporations to strengthen their industrial layout in the Asia-Pacific region, Zhang was quoted as saying by a state-controlled media outlet.

RCEP comprises 10 member states of the Association of Southeast Asian Nations plus China, Japan, South Korea, Australia and New Zealand. With the agreement entering into force for Indonesia on January 2, only the Philippines remains to have not yet ratified and implemented the pact.

RCEP member countries are key sources of raw materials and components and the main overseas markets for intermediate and manufactured goods for many Chinese companies, he added.

China's foreign trade with other RCEP economies grew by 7.5 per cent on a yearly basis to 12.95 trillion yuan ($1.93 trillion) in 2022, accounting for 30.8 per cent of the country's total exports and imports last year, statistics from the general administration of customs (GAC) showed.

China saw investment from Japan and South Korea jump by 122.1 per cent and 26.1 per cent respectively during January-November 2022, according to the ministry of commerce.

GAC said China saw its foreign trade with eight RCEP member countries grow double digits year-on-year in 2022, while its trade with Indonesia, Singapore, Myanmar, Cambodia and Laos grew by over 20 per cent on a yearly basis, said the GAC.

Lian Ping, chief economist at the Shanghai-based Zhixin Investment Research Institute, said that multiple highlights are expected this year in terms of China's trade structure.

"Exports of integrated circuits and auto parts, among other goods, could rise with low-tariff arrangements under the RCEP. New energy products are also expected to see boosted exports amid global carbon-neutrality commitments," he said.

ALCHEMPro News Desk (DS)