Depth report

　　

Today, when trade protectionism and unilateralism are impacting the global free trade system and order, the importance of multilateral free trade is more significant than ever before. The Regional Comprehensive Economic Partnership (RCEP), with free trade as its main line, is currently at a critical juncture of transitioning from the "largest free trade area" to a "high-level free trade area". It has not only become a new engine for regional economic growth but also shows a good momentum of leading economic integration in the Asia-Pacific region.

Recently, the negotiations on the 3.0 version of the China-Asean Free Trade Area were completed online, once again sending out a strong voice of safeguarding free trade and open cooperation. China and ASEAN are each other's largest trading partners and important investment partners, and both are firm supporters of economic globalization and multilateralism. Recently, many experts and scholars from ASEAN have also stated that jointly building a high-level RCEP is a major strategic measure to address trade protectionism and promote regional economic integration. All members must join hands, coordinate actions and jointly respond.

Asean Secretary-General Gao Jinhong believes that in the context of the rapid evolution of the global trade environment, RCEP is a key pillar of regional economic integration. The current world economy is confronted with major challenges brought about by the rise of protectionism and the intensification of trade frictions. These factors pose a threat to the sustainable and inclusive growth of regions. These challenges may undermine the momentum of global and regional economic development and affect millions of enterprises, especially small, medium and micro enterprises. Therefore, all RCEP contracting parties, including ASEAN and China, need more than ever to maintain a rule-based, open and predictable trading system under the RCEP framework and be in line with the principles of the World Trade Organization.

Gao Jinhong emphasized that the Protocol to upgrade the China-Asean Free Trade Area 3.0, which is set to be signed in 2025, will redefine the economic ties between ASEAN and China by consolidating and enhancing the innovation, productivity and competitiveness of both countries. ACFTA 3.0 can form a complementary mechanism with RCEP and provide mutually promoting development paths for enterprises within the region.

Ong Shijie, the chairperson of the Malaysia-Asia-Pacific "Belt and Road" Co-strategy Conference, pointed out that digitalization is entering all major aspects of the lives of ASEAN residents. China's advantages in the digital economy will make it the best partner of ASEAN to meet the growing demands of ASEAN's 670 million population.

Chawat, director of the Institute of East Asian Studies at Thammasat University in Thailand, believes that the RCEP and the China-Asean Free Trade Area 3.0 are complementary rather than competitive. In the future, the 3.0 version of the China-Asean Free Trade Area will promote the further development of RCEP in areas such as digital trade, environmental protection, and cooperation among small and medium-sized enterprises. It is necessary to promote the alignment of rules among RCEP member countries, such as setting up special working groups, establishing more concise and unified standards, and supporting small and medium-sized enterprises to better share the benefits of RCEP.

Ban Leyi, the president of the Philippine Institute for International Security Studies, believes that the Philippines is an export-oriented economy and therefore needs to further integrate into the RCEP. Support the further expansion of the RCEP. Meanwhile, it is suggested that a monitoring mechanism for the implementation of the RCEP be established as soon as possible and an RCEP secretariat be set up.

Shande Mugan Tangaviru, the chief professor of the Chea Funian Foundation at Sunway University in Malaysia, pointed out that trade rules should be market-based. As the world's largest free trade area in terms of population, RCEP has differences in the development levels among countries, which highlights the importance of institutional integration. All countries should recognize the gaps among themselves, strengthen capacity building and cultivate the ability of integration. In addition to trade in goods, more attention should be paid to the development and integration of fields such as the digital economy and the green economy. Internal coordination and external cooperation within ASEAN should be strengthened, and the resilience of the supply chain should be enhanced through technological reform in order to better address global challenges.

Cheng Jinlong, director of the Institute of Asian Vision in Cambodia, believes that RCEP should focus on the construction of governance mechanisms, which is crucial for eliminating trade barriers and deepening regional economic integration. It is necessary to enhance governance effectiveness by establishing support institutions and improving dispute settlement mechanisms. In response to the problem of homogeneous competition among member states, it is suggested to promote the integration of industrial chains and enhance the utilization rate of rules to coordinate competitive relations. Emphasis should be placed on tapping the potential of trade in services and strengthening cooperation in scientific and technological innovation. Meanwhile, integrate the resources of cooperation platforms such as China, Japan and South Korea to form a joint force for regional development.

From May 24th to 25th, the "Building a High-level Largest Free Trade Zone - 2025 RCEP Regional Development Media Think Tank Forum" was held in Haikou City, Hainan Province, co-hosted by China Daily, the China (Hainan) Institute for Reform and Development, and the China Ocean Development Foundation. The heads of mainstream media, think tanks and enterprises from 14 countries including China, Japan, South Korea, Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam About 300 representatives from international organizations such as the ASEAN Secretariat, the China-Japan-South Korea Cooperation Secretariat, RCEP supporting institutions, and the World Free Zone Organization attended the forum, actively offering suggestions and strategies to enhance consensus, strengthen confidence, and form synergy for regional cooperation.

Source: China Daily website