More moves to boost RCEP benefits

Chinese authorities will likely unleash more measures to help domestic and foreign enterprises better benefit from the implementation of the Regional Comprehensive Economic Partnership agreement that took effect on Saturday, said experts and business leaders. They said the moves will add resilience to regional industrial and supply chains and accelerate economic integration to boost free trade and economic globalization.
On Saturday, the China Council for the Promotion of International Trade issued 158 RCEP certificates of origin for 69 enterprises nationwide. Their export goods include mechanical and electrical products, textiles and chemical products. The exports amounted to about $12 million, and the RCEP certificates of origin are expected to help reduce tariffs for the Chinese businesses by $180,000, the council said.
Qu Fusong, director of the storage and logistics department of Dishang Group Co, an apparel company based in Shandong province, said the company is poised to reap rewards from the agreement. Dishang has factories located in the Association of Southeast Asian Nations bloc, which import raw materials from China. The materials will enjoy significant export tariff reduction and elimination, thanks to the RCEP rules of origin, which allow products to have just 40 percent of their value added within the region to enjoy lower or zero tariffs.
Dishang estimates it will save 5 million yuan ($787,083) on tariffs in 2022 on its clothing exports from China to Japan, Qu said.
Accounting for one-third of the world’s economy, the RCEP, a free trade agreement signed by 15 Asia-Pacific economies, will eliminate about 90 percent of tariffs on goods traded in the bloc over the next 20 years. Many of the tariffs will be abolished immediately, while some others will be gradually cut to zero over a 10-year period.