From January 1, 2022, the new free trade zone creation treaty comes into force

From January 1, 2022, the treaty on the creation of a new free trade zone - the Regional Comprehensive Economic Partnership (RCEP) - comes into force.

It will include 10 countries, 6 of which are members of the Association of Southeast Asian Nations (ASEAN):
Brunei
Cambodia
Laos
Singapore
Thailand
Vietnam
And four other countries in the region:
China
Japan
New Zealand
Australia

In terms of trade volume, RCEP will become the world's largest free trade zone. According to the Deputy Minister of Commerce of China, creation of the unified common market under the RCEP treaty will offset the negative impact of the pandemic on the economy and provide more opportunities for industries and enterprises of the member countries.

RCEP covers a market with a population of 2.2 billion people, while the economies of the treaty countries account for 30% of global GDP.

Zhao Gancheng, director of the Center for Asia-Pacific Studies at the Shanghai Institute of International Studies, believes that RCEP can help achieve a higher level of economic cooperation between China, Japan and South Korea. For example, it can promote mutual investment in such industries as microchips and power equipment manufacturing. Samsung Electronics may increase investment in China in such industries as chip manufacturing.

RCEP will strengthen trade relations between ASEAN countries and China. At the same time, China plans to import more agricultural products from ASEAN countries and export more consumer goods.

Over the next 20 years, RCEP is expected to eliminate up to 90% of tariffs on goods traded by treaty countries. According to the Wang Shouwen, Deputy Minister of Commerce of China, tariffs on almost 30% of goods exported by China will be canceled within the RCEP in March of this year.

With the RCEP example we see that while the United States plans to ensure peace and stability in the Indo-Pacific region enforcing military alliances and partnerships, China develops a completely different, economic direction.
Source: israil-95reg.livejournal.com
Image source: corp.wtcmoscow.ru