The implementation of the Regional Comprehensive Economic Partnership (RCEP) has brought about changes in the import of fruits and agricultural products from Southeast Asian countries. These products can now reach China more quickly and with lower tariffs. The RCEP is a free trade deal involving 10 Association of Southeast Asian Nations (ASEAN) countries, along with China, Japan, the Republic of Korea (ROK), Australia, and New Zealand, which came into effect on Jan. 1, 2022.
Vietnamese passion fruit and durian are two fruits that have benefited from this policy change. This development has given rise to a Vietnamese company specializing in the planting and processing of durian and other fruits. The company has expanded its production, signed a contract for 3,000 hectares of durian orchards, and constructed new factories.
The Guangxi Zhuang Autonomous Region in South China has been an important center for the exchange of ideas and cooperation between ASEAN countries and China. The TWT Supply Chain Management Co., Ltd., headquartered in Guangxi, has become a leading supply chain service provider, covering more than 50 Chinese cities and several ASEAN countries. Thanks to the trade and economic exchanges between China and ASEAN in recent years, the company has benefited from the implementation of the RCEP, which has led to even more business opportunities.
This policy change in the importation of Southeast Asian fruits and agricultural products into China is expected to have a significant impact on trade between China and ASEAN. By lowering tariffs on these products, demand is expected to increase, which will likely lead to a more thriving trade relationship between China and its Southeast Asian neighbors. This trend is in line with China’s broader aim to improve economic relations with its neighbors while also positioning itself as a leader in the global trade arena.
In conclusion, the implementation of the RCEP has brought about changes in trade relations between Southeast Asian countries and China. The reduction of tariffs on fruits and agricultural products has opened up new opportunities for growth in this sector. By improving trade relations with its neighbors, China is seeking to position itself as a leader in the global trade arena while simultaneously providing economic opportunities for its citizens and those of its Southeast Asian neighbors.