The RCEP Qingdao Innovation Pilot Zone for Economic and Trade Cooperation is set up. (PHOTO: VCG)

By ZHONG Jianli

The Regional Comprehensive Economic Partnership (RCEP) agreement came into force on January 1, 2022, creating the world's largest free trade area.

The RCEP was signed by 15 participating countries including 10 ASEAN members, China, Japan, South Korea, Australia and New Zealand. The total population, economic and trade volume of the 15 states all account for about 30 percent of the world total.

This is a "new milestone" in China's opening up, and will make China more closely connected with the world, said Ren Hongbin, vice minister of commerce, at a recent press conference.

With the RCEP officially coming into force, the proportion of zero-tariff products between China and ASEAN, New Zealand and other member countries increases significantly, and participating members are moving toward the goal of making more than 90 percent of trade in goods eventually tariff-free.

In east China's Qingdao city, shortly after the RCEP agreement took effect, the Qingdao Taxation Bureau accepted the 2.06 million RMB of export tax rebate application submitted by Qingdao Associated Textiles Group Import and Export Co., Ltd. This is the first application of its kind accepted by the tax authority, indicating that the RCEP brings tangible benefits to businesses engaged in foreign trade.

Local governments and businessmen in other parts of China are also seizing the opportunities brought about by the RCEP to promote international trade cooperation.

"RCEP will significantly reduce the operating costs of enterprises in the region, drive enterprises to restructure the supply chain and value chain, and optimize the flow of goods, technology, services, and capital," said Yang Chunting, director general of the Department of Commerce of the Guangxi Zhuang autonomous region.

As Guangxi has already established a RCEP Enterprise Service Center, Yang said the region will strengthen industrial cooperation with RCEP members, and promote the development of electronic information, new chemical materials, processing of traditional Chinese medicine, automobiles and new energy vehicles, among others.

At the junction of the Belt and Road Initiative and the Yangtze River Economic Belt, Chongqing Municipality has a unique location advantage in deepening cooperation with RCEP members.

The municipality will build a RCEP economic and trade cooperation pilot zone and an international logistics hub connecting RCEP member countries, speed up connections with RCEP members in aviation and railway, and enhance the trade distributing capacity with RCEP members.