Nav Search

Going strong from RCEP to CPTPP

By Zhang Yanling Source: China Daily Updated: 2020-11-25


An aerial view of Beibu Gulf Port in Qinzhou, Guangxi Zhuang autonomous region. [Photo/Xinhua] 

On Nov 15, the 10-member Association of Southeast Asian Nations and its five dialogue partners-China, Japan, the Republic of Korea, Australia and New Zealand-signed the Regional Comprehensive Economic Partnership agreement, marking the birth of the world's largest free trade area.

The agreement is designed to create a unified regional market by reducing tariff and non-tariff barriers.

As the host country, Vietnam held a series of video summits in Hanoi with the goal of promoting all-around cooperation. The support for globalization and trade liberalization that participating countries exhibited is proof that there are no takers for de-globalization, protectionism and unilateralism that certain countries have resorted to.

Despite considerable differences and development imbalances, the different sizes, degrees of development and backbone industries among RCEP members gives them strong complementarities that can boost their markets.

As the most important trading partner and the largest importer in the region, China's accession to the RCEP will accelerate the upgrading of its domestic economy in the "dual circulation" pattern.

The RCEP will enable China to deeply integrate with the Asia-Pacific economy and further expand overseas demand.

Apart from promoting negotiations for the China-Japan-ROK free trade agreement, it will also accelerate the implementation of the China-EU investment agreement and the process of China joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Countries and regions in the Asia-Pacific need stable currencies, stable trade, stable tourism, stable people-to-people exchanges and a stable ecological environment to boost development, for which the RCEP can create the right conditions.

The agreement can promote mutual recognition of international anti-epidemic health information, help establish an international industrial and supply chain cooperation platform, and maintain the safe and smooth operation of global and regional industrial and supply chains.

The RCEP being the fastest growing economy, it is necessary for RCEP members to coordinate their financial policies to prevent the region from once again becoming the epicenter of a future financial crisis. They should strengthen financial cooperation and establish the renminbi's status as a usable currency in the region.

China will also actively consider joining the CPTPP, whose high standards it already meets. Its entry into the CPTPP is expected to bring huge economic benefits to itself and other members, with the trade volume expected to rise by 50 percent.

China will remain committed to ensuring world peace, contributing to global development and maintaining international order. It is hoped that after the RCEP, China will embrace the CPTPP.

Zhang Yanling, former deputy governor of the People's Bank of China

The views don't necessarily reflect those of Qiushi Journal.