Beautiful Virgin Islands

Tuesday, Jun 03, 2025

China, 14 Asian partners sign world’s biggest trade pact

China, 14 Asian partners sign world’s biggest trade pact

Regional Comprehensive Economic Partnership, which covers about 30 per cent of global GDP, signed on sidelines of virtual Asean summit.

China and 14 other countries on Sunday signed a sprawling Asian trade deal seen as a huge coup for Beijing in extending its influence.

The Regional Comprehensive Economic Partnership (RCEP) – which includes the 10 members of the Association of Southeast Asian Nations (Asean), Japan, South Korea, New Zealand and Australia – is the world’s largest trade pact in terms of GDP, analysts say.

First proposed in 2012, the deal was sealed on the sidelines of the Asean annual summit as leaders push to get their pandemic-hit economies back on track.

“I am happy that after eight years of complex discussions, today we officially end RCEP negotiations,” Vietnamese Prime Minister Nguyen Xuan Phuc said ahead of the virtual signing.

The agreement to lower tariffs and open up the services trade within the bloc does not include the United States and is viewed as a China-led alternative to a now-defunct Washington trade initiative.

The RCEP “solidifies China’s broader regional geopolitical ambitions around the Belt and Road Initiative”, said Alexander Capri, a trade expert at the National University of Singapore Business School, referring to Beijing’s signature investment project that envisions Chinese infrastructure and influence spanning the globe.

“It’s sort of a complementary element,” he said.


The RCEP is the world’s largest trade pact in terms of GDP.


But many of the signatories are battling severe coronavirus outbreaks and they are also hoping the RCEP will help mitigate the crippling economic cost of the illness.

Indonesia recently tumbled into its first recession for two decades while the Philippine economy shrunk by 11.5 per cent year on year in the third quarter.

Covid has reminded the region of why trade matters and governments are more eager than ever to have positive economic growth,” said Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based consultancy.

“RCEP can help deliver it,” she said.

India pulled out of the agreement last year over concerns about cheap Chinese goods entering the country and was a notable absentee during Sunday’s virtual signing. It can join at a later date if it chooses.

Even without India, the deal covers 2.1 billion people, with RCEP’s members accounting for about 30 per cent of global GDP.

Crucially, it should help shrink costs and make life easier for companies by letting them export products anywhere within the bloc without meeting separate requirements for each country.


The RCEP agreement touches on intellectual property, but environmental protections and labour rights are not part of the pact.


The agreement touches on intellectual property, but environmental protections and labour rights are not part of the pact.

The deal is also seen as a way for China to draft the rules of trade in the region, after years of US retreat under President Donald Trump which have seen Washington pull out of a trade pact of its own, the Trans-Pacific Partnership (TPP).

Though US multinationals will be able to benefit from the RCEP through subsidiaries within member countries, analysts said the deal might cause US president-elect Joe Biden to rethink Washington’s engagement in the region.

This could see the US eye the potential benefits of joining the TPP’s successor deal, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.

“However, this is not expected to be an immediate priority issue … given the considerable negative response to the TPP negotiations from many segments of the US electorate due to concerns about US job losses to Asian countries,” he said.



Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×