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Chinese cities promote opening-up to embrace RCEP opportunities

2022-01-07 08:19:49 Xinhua Silk Road

Chinese cities make all efforts to facilitate trade cooperation with RCEP members to embrace business and development opportunities brought by the deal.

As the Regional Comprehensive Economic Partnership (RCEP) agreement took effect on Jan. 1, Chinese cities make all efforts to facilitate trade cooperation with RCEP members to embrace business and development opportunities brought by the deal.

-- RCEP dividends inject vitality into regional cooperation

Covering about one third of the world's population, as well as its gross domestic product and trade volume, the RCEP forms the world's largest free trade area. With optimized trade rules among signatories, wider opening-up in the sectors of services-trade and investment and advanced intellectual protection, the RECP will bring direct "dividend", such as zero-tariff, step by step to over 90 percent of goods in the region.

In recent years, southwest China's Chongqing has seen growing trade volume with RCEP member countries, which reach 204.3 billion yuan (about 32.08 billion U.S. dollars) in 2020 from 127 billion yuan in 2016, with an average annual growth rate of 12.6 percent. The total imports and exports between Chongqing and RCEP members stood at 190.72 billion yuan from January to October of 2021.

RCEP member countries invest and set up more than 50 enterprises in Chongqing each year, with the annual actual foreign investment exceeding 900 million U.S. dollars.

Meanwhile, Chongqing's investment into RCEP member countries has taken larger share during past years, rising from 3 percent in 2016 to 5.8 percent in 2020.

"Enterprises could enjoy new benefits such as tax cut in foreign trade thanks to the pact," said Xiao Hong, who is in charge of foreign trade of a mechanical equipment manufacturer based in Chongqing. According to Xiao, the firm's products have been sold to 12 countries in the RCEP bloc.

The entry into force of the RCEP also made a difference in costal city of Qingdao in east China's Shandong Province. The city's tax authority has started to deal with the first case of tax refund filed by Qingdao Associated Textiles Group Import & Export Co.,Ltd., worth 2.06 million yuan.