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SHANGHAI: Jan 1 might bring glad tidings to people for a variety of reasons, but for business executives such as Wang Zhengbo, president of Guangxi TWT Supply Chain Management Co Ltd, the coming New Year’s Day will unveil a happy breakthrough.
On that day, the Regional Comprehensive Economic Partnership (RCEP) agreement will take effect in 10 signatory members out of the total 15, potentially transforming the global economy and fortunes of companies like TWT Supply Chain.
The company, based in Nanning, Guangxi Zhuang autonomous region, trades in agricultural products.
It focuses on markets in the footprint of Asean.
For TWT Supply Chain, closer ties between China and Asean under the RCEP framework would mean further reduction in trade costs and expansion of trade items.
What’s more, overall business prospects will likely get increasingly brighter.
The free trade agreement or FTA, signed by 15 Asia-Pacific economies including China, South Korea and Japan, and all 10 member states of Asean in November last year, has created the world’s largest free trade bloc.
The 10 countries where the FTA will take effect on Jan 1 are Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia.
The RCEP region has a population of around 2.27 billion, or about one-third of global population.
The RCEP agreement once in force is expected to further integrate the massive regional market, thanks to trade and investment facilitation and liberalisation measures, analysts and business executives said.
That will not only lead to increased trade and investment activities in the region but usher in a new wave of growth impetus, which could aid the world economic recovery from the impact of the Covid-19 pandemic, and ward off ill-effects of rising protectionism and the anti-globalisation sentiment, they said.
“The RCEP will spread the rule of trade law more deeply in the Asia-Pacific,” said Stephen Jacobi, executive director of the New Zealand International Business Forum, in an email to China Daily.
“Enterprises and workers will benefit from better market access and better trade rules. Some economies will be linked by free trade arrangements they have not had before. Other provisions will ensure trade can be done more easily and less expensively,” said Jacobi.
He is also serving as executive director of the Asia-Pacific Economic Cooperation Business Advisory Council for the period from December 2020 to this year-end, to coincide with New Zealand’s chairmanship of Asia-Pacific Economic Cooperation.
“That will help ensure goods and services can flow more freely across supply chains in the region. In this way, increased trade can contribute to increased economic growth and assist the pandemic recovery,” he said.
Da Hongfei, CEO of Onchain, a Shanghai-based blockchain technology startup, said the firm expects to increase its business presence by expanding to more RCEP members starting from Singapore, where the company has already located its first branch for the Asean region. — China Daily/ANN