China may offer reduced tariffs to push through mega regional trade pact
- Beijing will for the first time host ministers from 15 other nations involved in Regional and Comprehensive Economic Partnership talks
- While some officials hope to wrap up negotiations this year, the road to reaching a deal may be difficult
China is expected to make concessions including reducing tariffs in a bid to push forward stalled talks on a mega regional trade deal when it hosts the 15 other nations involved at a summit, observers say.
It will be the first time China has hosted negotiations on the Regional and Comprehensive Economic Partnership (RCEP) since it was proposed in 2012. Trade ministers from the 10 members of the Association of Southeast Asian Nations (Asean) plus six other countries in the region – China, Japan, South Korea, Australia, New Zealand and India – will meet in Beijing from August 2 to 3.
Commerce ministry spokesman Gao Feng said China, as host, would “continue to respect and uphold the pivotal role Asean plays in RCEP negotiations and make a contribution to forging communication, cooperation and consensus to support the negotiations to be finalised within the year”.
Ahead of the summit, talks will be held in the Chinese city of Zhengzhou, Henan province between July 22 and 31.
There have been 26 rounds of negotiation on the RCEP so far, with the most recent wrapping up on Wednesday in Melbourne, Australia. Talks on the deal had made slow progress until the past few years, amid growing opposition to free trade and tariff pressure from US President Donald Trump. Many in the region fear that Trump’s tariff threats could have a devastating impact on global supply chains, particularly at their heart in East and Southeast Asia.