July 14, the 4th Forum on Enhancing Industrial Cooperation among RCEP Countries was held. Mr. Xu Ningning, Executive President of the China-ASEAN Business Council and Chairman of the RCEP Industry Cooperation Committee, said that the industries of the RCEP countries are highly complementary and the enhanced coop eration contributes to a promising future. From January to June in 2021, China's trade with its RCEP trading partners and ASEAN grew by 22.7 % and 27.8% respectively in RMB. China and ASEAN remain the largest trading partner of each other.
During the meeting, Mr. Xu Ningning analyzed the main characteristics of RCEP.
First, the scale is large. RCEP is the largest free trade area in the world, with the largest population, the largest economy scale, the most diverse membership structure and the greatest development potential, covering about 30% of the world's population, 30% of the global economy and 30 % of foreign trade.
Second, RCEP opens more areas and to a greater extent compared to WTO. Within the framework of the RCEP, China and Japan, Japan and South Korea have reached a breakthrough agreement on free trade.
Third, there is a foundation of free trade. RCEP is integrated and upgraded on the basis of 10+1 free trade agreements implemented by ASEAN and China, Japan, the Republic of Korea, Australia and New Zealand, with corresponding free trade basis. The 10+1 strategic partnerships in the region have promoted continuous cooperation between the two sides in the past decade and more.
Fourth, ASEAN plays a leading role. East Asian Characteristics -- ASEAN, which is mainly composed of developing countries, initiated and led the RCEP.
Fifth, after eight years of negotiations and running-in, the RCEP has fully prepared for the changes brought about by the opening of the market.
Sixth, RCEP countries enjoy close trade and investment ties and strong industrial complementarity. The construction of RCEP will not only facilitate the expansion of trade scale and mutual investment among member states, which will bring more trade creation, but also help RCEP member states attract more investment from enterprises outside the region.
Seventh, the demand for cooperation is rising. There is a growing need for RCEP countries to work together to tap the potential of regional development, to cope with the sluggish growth of the world economy over the years and the current severe downturn, and to tackle the rising demand for international trade protectionism.
In the first six months of this year, the trade volume between China and ASEAN reached $410.76 billion, up 38.2% year on year, Mr. Xu Ningning said. The trade volume between China and ASEAN is US $22.55 billion more than that between China and the EU, China's second largest trading partner. The trade between China and ASEAN accounted for 14.7% of China's total foreign trade, the same proportion as the same period last year.
From January to June this year, China's export to ASEAN reached $225.83 billion, up 38.3% year on year. China's imports from ASEAN reached $184.92 billion, up 38.1% year on year. China's surplus was $40.91 billion, up 26.2% year on year. Among the ten ASEAN countries, China has the largest trade surplus between Vietnam, which is $25.28 billion, accounting for 61.8% of the total trade surplus. China had the largest deficit with Malaysia, at US $13.89 billion.
In the first six months of this year, the trade volume between China and Japan reached $181.29 billion, up 23.7% year on year. The trade volume between China and the Republic of Korea reached $168.88 billion, up 28.5% year on year. The trade volume between China and Australia reached $1,07.42 billion, up 35% year on year. The trade volume between China and New Zealand reached US $12 billion, up 36.1% year on year.
Mr. Xu Ningning emphasized that at present, RCEP construction cannot wait for countries to complete their domestic ratification procedures. A key point in the domestic ratification process lies in the concern of the hit to industries after opening of the market, though the enforcement of RCEP agreements. So, relevant countries should raise industry cooperation to reduce the above concerns, which will facilitate the early completion of the implementation of domestic ratification procedures.
Xu Ningning said that at present, China and ASEAN countries should continue to adhere to the principle of "wide consultation, joint contribution and shared benefits", fight against the epidemic and develop the economy as the top priority of joint construction of Belt and Road Initiative. Cooperation is a powerful force. It is very necessary for countries to further synergize, coordinate and cooperate in their economic measures and industrial policies to tackle the epidemic. "Sustainable development cooperation" is the theme of China-ASEAN cooperation in 2021, and both sides should take considerations on ecological and environmental protection, climate change, poverty reduction and other cooperation in sustainable development.
During the meeting, Mr. Yu Zhuomin, Executive Vice President of the China Communications and Transportation Association, Mr. Chen Wei, Executive Vice President and Secretary General of China Meat Association, Ms. Wang Xin, Vice President and Secretary-General of China Light Industry Machinery Association, Mr. Gao Quan, Secretary of the China Research and Acceleration of Chinese Medicine (CRACM), Mr. Wang Jianguo, Deputy Secretary General of China Food Association, Mr. Ding Yue, Deputy Secretary General of China Fisheries Association and other representatives supposed that strengthen the RCEP industry all over the world can bring progressive cooperation between enterprises, promote the construction of the new industrial chain with complementary advantages of countries, increase regional productivity, anti-risk ability and international competitiveness, bring both connectivity and infrastructure construction, deepen financial cooperation, and cultivate new economic growth point.
Ms. Wang Xin, Vice President and Secretary-General of China Light Industry Machinery Association, said that the opening of RCEP area puts forward higher requirements of improving the quality of light industrial machinery with higher speed in China. They will assist enterprises to seize the opportunity of RCEP by providing trainings and information, as well as holding exhibitions. They also hope to collaborate with China-ASEAN Business Council to promote light industrial machinery industry cooperation between China and ASEAN.
Mr. Yu Zhuomin, Executive Vice President of China Communications and Transportation Association suggested that it is important to guide the enterprises to participate in overseas logistics park and the construction of storage facilities, build logistics hub, further strengthen International Land and Sea Corridor construction, promote the RCEP member states to deepen cooperation in terms of market access mechanism, accelerate the construction of regional logistics data center and data platform, and set examples on demonstration projects.
Mr. Chen Wei, Executive Vice President and Secretary General of China Meat Association, suggested that regional cooperation on meat industry chain should be strengthened, and the efficiency of imported products sanitization should be improved on the basis of comprehensive anti-epidemic work. They hope to jointly convene a regional video conference on the international meat industry cooperation with RCEP Industrial Cooperation Committee. Mr. Gao Quan, Secretary of the China Research and Acceleration of Chinese Medicine (CRACM), suggested to enhance cooperation in the traditional medicine industry among countries in the region and effectively contribute to fight the epidemic.
Representatives of the National Association of Industry Business expressed that they would strengthen cooperation with the RCEP Industry Cooperation Committee, carry out research and training of RCEP rule, assist enterprises in the RCEP industry through annual meetings, seminars, exhibitions, online matching conferences and other forms of cooperation, and act as a bridge in RCEP regional cooperation.
Mr. Xu Ningning pointed out that in the past half month, China-ASEAN Business Council has held four "Forums on Enhancing Industrial Cooperation among RCEP Countries", aiming to encourage national business associations to play a positive role in seizing the opening opportunities of RCEP and boost the external circulation in the "double cycle" economic development, in order to promote industrial cooperation in RCEP region to drive new development of trade and investment.
