Facing RCEP Challenges Due to US-China Conflict

At the Boao Forum, US-China Military Conflict to Determine RCEP Success
China Emphasizes US Participation in Asia-Pacific Multilateral Policies and Free Trade

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Concerns have been raised at the Boao Forum that the Regional Comprehensive Economic Partnership (RCEP) may not function properly due to US-China conflicts. The Boao Forum, known as the "Asian Davos Forum," opened on the 18th and runs until the 21st.

The state-run Global Times reported on the 20th, citing economic experts attending the Boao Forum, that as competition between China and the US intensifies, RCEP is facing challenges.

[Image source=Yonhap News]

Professor Zheng Yongnian of the National University of Singapore attended a session at the Boao Forum held the previous day and said, "Geopolitical issues are having too great an impact on global trade," adding that this will pose a significant challenge to the implementation of RCEP. The geopolitical issue he referred to is the US-China conflict.

Professor Zheng diagnosed, "Whether we like it or not, the China-US conflict and competition have become concrete," and said, "We must first see how the military conflict between China and the US will be resolved." He continued, "In the current situation, what China can do is to take a more open path than ever before," emphasizing, "China's openness can change the flow and pattern of global capital."

In response, Cai Chang, a member of the Chinese State Council Tariff Commission, said, "The Chinese government attaches great importance to RCEP," and added, "China is fully prepared for RCEP to come into effect at any time."

The 15 countries including the 10 ASEAN nations, South Korea, China, Japan, Australia, and New Zealand reached a final agreement and signed RCEP last November. RCEP will come into effect after each country completes parliamentary ratification. Currently, only China, Singapore, and Thailand have completed the ratification process.

The population of RCEP member countries is 2.27 billion, accounting for 30% of the world's population. Once RCEP is fully implemented, it will create the world's largest economic bloc, accounting for 30% of global GDP and 29% of trade volume.

Long Yongtu, former Vice Minister of China's Ministry of Commerce, explained, "RCEP will form the strongest and most competitive industrial chain," and noted that trade in the region has already increased since the signing of RCEP last November.

The Global Times added that in the first quarter of this year, trade between China and the 14 other RCEP member countries totaled 2.67 trillion yuan (approximately 458 trillion Korean won), a 22.9% increase compared to the same period last year, accounting for 31.5% of China's total foreign trade.

Former Vice Minister Long emphasized, "The participation of the United States, the world's largest economy, would benefit not only the Asian regional economy but also the US economy," and urged, "The Biden administration should join China's efforts to promote multilateral policies and free trade in the Asia-Pacific region."

Meanwhile, the 20th Boao Forum this year is attended by about 4,000 participants from over 60 countries, including 40 current and former political leaders, 74 current and former ministers, leaders of international organizations, business figures, scholars, and government officials. Due to the impact of COVID-19, overseas participants deliver keynote speeches via video conference. Although the Boao Forum opened on the 18th, major speeches by key attendees will be held over two days from the 20th to the 21st.

This content was produced with the assistance of AI translation services.