Chinese President Xi opens up to more trade and import agreements The agreement sets the terms for trade in goods and services, cross-border investment and new rules for increasingly important areas such as e-commerce and intellectual property. The impact on trade in manufactured goods between Asian nations will be particularly evident, analysts said. The U.S. exit from the CPTPP meant a withdrawal for a country that was once a global defender of free trade. China`s inclusion in the RCEP and the absence of the United States indicate that the Asia-Pacific region is moving forward alone. The agreements may be less comprehensive, but they are still being finalized. As Biden takes office, the dangerously tense relationship between China and the United States needs urgent attention and the EU is not powerless to influence the outcome through its words and actions. The EU is not interested in an intergenerational conflict between the two superpowers, which could lead to the outbreak of war in the Pacific, and the EU does not see China as an enemy. Closer economic relations between the EU and China will depend on China`s efforts to limit trade distortions caused by its state-dependent competitive model. As Japan has shown in Asia, such an attitude is not contrary to China`s human rights violations and the fight against its growing economic influence in neighbouring countries.

Free trade agreement. The U.S. International Trade Administration Southeast Asia will benefit greatly from RCEP ($19 billion per year until 2030), but less than Northeast Asia, since it has already concluded free trade agreements with RCEP partners. But the RCEP could improve access to funds from china`s Belt and Road Initiative (BRI) and improve the benefits of market access by strengthening transport, energy and communication links. RCEP`s favourable rules of origin will also attract foreign investment. The RCEP agreement is flexible enough to meet the needs of different countries as diverse as Australia, Myanmar, Singapore and Vietnam. Green says the U.S. will “regret” having two major multilateral agreements on the margins.

He says this will bring two benefits to China: “On the one hand, there will be a narrative in the region that China is the new leader that has the most influence on trade and rules. And the second is that it will reduce barriers to trade with China at a time when the United States is doing nothing to reduce barriers to trade with the United States. In a joint statement, the countries` heads of state and government said the trade agreement would be a decisive part of their post-pandemic recovery plans that forced countries around the world to block their economies. The harmonization of rules of origin in the many previous trade agreements between the 15 RCEP signatories is an essential aspect of the new regulations.