ASEAN has surpassed all of EU in importance to China.
But this is so little talked about in the news media.
ASEAN has surpassed all of EU in importance to China.
But this is so little talked about in the news media.
A trade deal was just passed a couple of weeks ago
Definitely seen as a big deal, especially here in China. People have been saying Asian century for 20 years, we think RCEP is the treaty that defines it.
Japan and South Korea found the confidence to act independent of the USA.
RCEP is economic certainty for everyone, it raises our negotiating position versus outside of the region. China doesn't have recessions, it has stable economic planning until 2035. With RCEP signed, the treaty protects economic certainty for the whole region.
It Depends, trade conflicts that can lead to war just like the British and China in the opium days. It's already happening with the U.S.A-China
@rambo
the whole point of EU was to prevent another war through integrated trading. ASEAN is another example, it made relations much better compared to the 1970's among SEA countries.
EU was created to prevent wars between European countries and to ban together to rival the USA and Russian powers from dominating Europe.
In the case of Asean. Vietnam & Cambodia put their warring history behind.
Anyway, RCEP is not a union like E.U or ASEAN. RCEP is a trade deal and I doubt RCEP will lead to a union.
what happen to India?
I heard they pull out last year. They don't do much global exports anyway, didn't care about being part of the group.
It is in a way. you can't really force it on them since they have their own thinking. It's a big shock when going to zero tariff, you need an economy that can work with it.
Posted by: @lilshawty204India has 1.3 billion people, it's a big loss.
India has a huge trade imbalance with China, RCEP will make the trade imbalance worst for India.
@rambo
all trade is eventually balanced. surplus countries always look for ways to reduce the surplus. Total surplus for China is actually not large, much smaller than Germany for instance.
@rambo
I would be interested in seeing the total surplus/deficit among all partners. As far as I know, China's total is smaller than even Germany. Too much surplus is not desirable it means you have no choice but to make poor investments. Chinese investment doesn't get good returns when you have things like war in Libya and Ethiopia. They made a lot of risky investment because they had too much surplus. OTH having overseas investment means it's worthwhile to help keep the peace everywhere.
The Economy in Asia doesn't effect my daily life. I can't buy stocks or property in Asia. If I could somehow, then I would put time and effort to study the Asian market.
My opinion doesn't matter BTW because I don't represent the interest of actual people living in south east asia. I'm sure people in South East Asia have a huge pressure to eliminate poverty.
I am more interested in China-USA trade relationship because it actually effects my stock value and environment that I live in.
s, however, the Modi government decided to pull out of RCEP in November 2019, citing the group's failure to address India's concerns on “rules of origin”, over protections for India's agriculture and dairy sectors, and worries about ceding more market access to China and other non-FTA
Why does Asean need this deal? China don't buy anything from south east asia.
RCEP leaves 10%-20% of the economy that won't go to zero tariff. you can use it to focus on industries you think you can grow in strength. Australia had a car industry they've just given up and went full-on into natural resources. someone has to do these things and it's not as easy to do as people think, resources are valuable. Russia, Canada, Australia all resource economies.
ASEANs needs to be selective to who ASEAN trade with. I don't think ASEAN needs to trade with every nation on the planet to industrialize. Th advantages of Asean is Asean have less population to feed compared to China and India. (both 3 billion plus)
I am not a fan of the RCEP
@rambo
"origins of manufacturer tariff laws..."
??? sounds like another Indian stick in your spokes way of arguing. what this sounds like, is a nonstarter with any country, shows Indians don't understand globalization. I'm not surprised they don't belong in RCEP.
From the Indian side of things, They already have a trade imbalance with China & RCEP will destroy Indian Agriculture. India already has a trade agreement with ASEAN, S.korea, Japan.