Are China’s export control law and the RCEP pulling in different directions? Not quite

  • Even as the world’s largest free-trade deal was being negotiated, China was drafting its export control law. This indicates that while Beijing is emphasising economic integration within Asia, its position is more defensive towards countries further afield

Staff from China National Nuclear Corporation Southwestern Institute of Physics work in the vacuum chamber of the HL-2M Tokamak, China’s new-generation “artificial sun” in Chengdu, Sichuan province, on May 27, 2019. Nuclear technology is one of the areas covered by China’s new export control law. Photo: CNNC Southwestern Institute of Physics/Xinhua
For China’s policymakers, the Regional Comprehensive Economic Partnership marks a new milestone in Asian regional economic integration. In 2019, China’s total trade with RCEP member states accounted for about one-third of its total foreign trade, while investment from other RCEP economies made up more than 10 per cent of China’s total foreign investment.

After the agreement takes effect, which could be as early as mid-2021 depending on it being ratified by several countries, more than 90 per cent of the goods trade in the region will eventually achieve zero tariffs. According to estimates by international think tanks, by 2030, the RCEP is expected to drive a regional net increase of US$519 billion in exports and US$186 billion in national income each year.

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