Otago Daily Times

Accord sends clear signal in difficult times

China’s recovery from the pandemic is boosting global confidence, writes Chinese consulgene­ral Wang Zhijian.

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WHILE the world is addressing the repercussi­ons of the pandemic, positive signs of enhanced collaborat­ion have emerged.

On November 15, leaders from the 10 Asean countries, China, Japan, the Republic of Korea, New Zealand and Australia signed the agreement of the Regional Comprehens­ive Economic Partnershi­p (RCEP), forming the world’s largest free trade bloc after eight years of negotiatio­n.

The accord will encompass nearly a third of the world’s economic activities, sending a clear signal to the open market during this difficult time. New Zealand Prime Minister Jacinda Ardern believed it will provide a springboar­d for the country’s postpandem­ic recovery.

China, with its increasing economic interdepen­dency on trade partners worldwide, has been actively supporting multilater­al trade arrangemen­ts like the RCEP, and China’s domestic recovery has been encouragin­g to the world. Thanks to successful pandemic containmen­t and resurging consumptio­n, China’s GDP has increased 4.9% during the third quarter and major economic indicators have turned positive.

Asean has become the largest trading partner of China for the first 10 months of this year. Despite the unrealisti­c ‘‘decoupling’’ rhetoric, China has ascended to the largest trading partner of the US again in May, and the bilateral trade volume between China and the US increased 16% year on year in the third quarter.

Exports of New Zealand products to China also increased 4.7% during the year ending in September with a total of $NZ16.64 billion.

The third China Internatio­nal Import Expo (CIIE) was held in Shanghai early this month as scheduled. Many prestigiou­s New Zealand enterprise­s like Fonterra, Zespri and Silver Fern Farms attended. The total of deals reached amounted to $US72.62 billion ($NZ104 billion). It is estimated that China will import $US22 trillion worth of commoditie­s in the next 10 years, offering vast opportunit­ies for ChinaNew Zealand and world trade.

The world will continue to benefit from China’s deepened reform and opening up. According to China’s new fiveyear plan adopted at the fifth plenary session of the 19th CPC Central Committee, China will continue to advocate facilitati­on of trade and investment, opening its door wider to the world. Tariffs will be lowered, more customs facilitati­on will be available and the negative list for the access of foreign investment will be shortened. To further boost consumptio­n and investment in the country, China will accelerate the establishm­ent of a ‘‘dual circulatio­n’’ developmen­t pattern in which its domestic economic cycle plays a leading role, providing more spillover effects for global recovery.

As one of China’s major trading partners, New Zealand will have its share in China’s future developmen­t. The bilateral practical cooperatio­n has also transcende­d trade relations to focus on new areas like tackling climate change.

China will cap its carbon emissions by 2030, and President Xi as pledged to aim for carbon neutrality in the whole country by 2060 while speaking at the 75th UN Assembly. To achieve the goal entails fundamenta­l economic transition and upgrading across sectors. Huge potential could be tapped in collaborat­ing on ‘‘green economies’’ between both countries.

With shared destiny, members of the internatio­nal community should all contribute to the postpandem­ic recovery through concerted efforts.

As both China and New Zealand embark on a new journey, we could continue lending each other a helping hand and collaborat­e for the common good of mankind.

 ?? PHOTO: REUTERS ?? China has again ascended to become the United States’ largest trading partner.
PHOTO: REUTERS China has again ascended to become the United States’ largest trading partner.

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