China Daily Global Edition (USA)
Of global economy
China Institute for Free Trade Ports with Chinese Characteristics.
The report also said the RCEP could boost global GDP growth by $186 billion a year. And Credit insurer Euler Hermes predicted that the common rule of origin could increase intra-regional trade by $90 billion annually, and the RCEP’s less restrictive rules, compared with other FTAs, imply fewer impediments for trade in the region.
The common rule of origin will also attract manufacturers seeking to optimize the comparative advantages of individual markets, according to Jia Jingwei, vice-chairman of Swiss Re Corporate Solutions’ China branch.
The RCEP will drive the growth of regional investment in the medium to long term, Jia said, adding that he expects higher demand for cargo, transport and credit insurance.
According to Deutsche Bank’s Kenny Khoo, who recently moved from Shanghai to Singapore to set up the bank’s China-ASEAN desk, Chinese corporations are paying more attention to ASEAN since the signing of the RCEP.
Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, said the RCEP economies, despite having different levels of development and resource endowment, have strong economic and trade complementarity, and deeper economic and trade cooperation among them means better utilization of resources and higher levels of efficiency in production. The RCEP also provides a valuable opportunity for lower-income economies to further integrate into the global industrial and trade and investment networks, he said.
“For the world economy, the RCEP promises not only more exporters of quality goods and services, but also expanding markets with increasingly deep-pocketed consumers,” Tu said.
As the RECP region, the world’s manufacturing powerhouse, also promotes innovation, it will unleash the innovation potential of the AsiaPacific and therefore create more business opportunities for both regional and non-regional businesses, greatly contributing to global economic recovery, Tu added.
George Yong-Boon Yeo, Singapore’s former minister for Trade and Industry and Foreign Affairs, and senior adviser to Kuok Group and Kerry Logistics Network, said at the forum that the RCEP must never turn inwards. An inclusive RCEP will encourage others to liberalize too, and oppose the ill wind of decoupling and trade war, he said.