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E-mail China.org.cn, February 7, 2024
Nanfang Daily, Nanfang+:
In 2023, the Regional Comprehensive Economic Partnership (RCEP) entered into full effect. China signed free trade agreements with many countries and continued to enlarge its circle of friends via free trade. What progress has been made by China in the development of its free trade areas? What follow-up measures will be taken by the MOFCOM to advance the high-standard development of free trade areas? Thank you.
Wang Shouwen:
Thank you for your questions. General Secretary Xi Jinping put forward that we should expand the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. The MOFCOM has resolutely implemented the decisions and plans of the CPC Central Committee and adopted a series of measures last year, achieving good results.
First of all, just as Mr. Wang mentioned, in 2023, we made a new record in terms of the negotiation and signing of free trade agreements. We have recently signed four agreements, including free trade agreements with Ecuador, Nicaragua, and Serbia, and the protocol on further upgrading the free trade agreement with Singapore. We have also completed negotiations on the early harvest arrangements for the free trade agreement with Honduras. As of today, we have signed 22 free trade agreements with 29 countries and regions, accounting for about one-third of China's total foreign trade volume.
In terms of the content of the free trade agreement, new progress has been achieved concerning high standards. For example, China committed to a negative-list model of services and investment opening-up by signing an FTA with Nicaragua and reaching a protocol to further upgrade the FTA with Singapore, which marked a historic moment in China's FTA negotiation history. In addition, free trade agreement negotiations at present all include cooperation on standards, including digitization of trade documentation.
The RCEP you just mentioned is indeed worth highlighting in our introduction. RCEP has been in effect for two years, and it has brought tangible benefits to Chinese enterprises and our free-trade agreement partners. Last year, the trade volume of China with other 14 RCEP member countries reached 12.6 trillion yuan, up 5.3% from 2021 before the agreement came into force. China's exports to RCEP member countries increased by 16.6%, 4.6 percentage points higher than the growth rate of China's total exports over the same period. What is worth mentioning is that China's exports of NEVs, lithium-ion batteries, and photovoltaic products have a more impressive performance.
In terms of tariff reduction and exemption, under the framework of the RCEP agreement, tariff concessions on import products for Chinese enterprises amounted to 2.36 billion yuan last year. While enterprises of RCEP countries benefited from 4.05 billion yuan of tax breaks for products imported from China in 2023. Clearly, that's the result of mutual benefits. We have also helped local enterprises and industries to enjoy the benefits brought by these free trade agreements.
At the same time, we have actively worked towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). On Aug. 18, 2022, China set up a working group to advance talks on joining the DEPA . We have completed over 10 rounds of negotiations at the ministerial level, bureau level, and technical level. Mr. Wang has had full exchanges with ministers of DEPA member countries, and primary discussions of all items have now been completed.
This year, it can be said that we will have a richer agenda for our free trade agreement negotiations. We will strive to complete the negotiations on the China-ASEAN Free Trade Agreement 3.0, which will be held in Hangzhou next week. We will also complete the negotiation with Honduras, negotiations with Peru about the upgrading of our free trade agreement, and continue to work towards joining the CPTPP and DEPA.
In addition, we will launch negotiations on free trade or upgrading free trade agreements with the Gulf Cooperation Council, New Zealand, South Korea, and Switzerland to further implement the requirement of expanding the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress.
In terms of high standards, we will also add some new content, including raising the proportion of zero-tariff treatment in trade in goods; promoting negative-list model of services and investment opening-up, including the opening up of telecommunications, health care, and other service industries; expanding market access for digital and other products; and incorporating high-standard economic and trade rules concerning digital economy, green economy, and standard certification, and government procurement into new free trade negotiations.
Thank you for your questions.
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