Asia-Pacific geopolitics is undergoing a subtle yet consequential shift. Where cooperation was once defined by Western-led rules, norms and security alignments, China is advancing a model focused on delivering tangible public goods rather than abstract principles.

At the core of this shift is a deeper contrast between two models of regional influence. The traditional Western approach focused on rules, standards, governance norms, and security alliances, drawing legitimacy from adherence to established principles. China, by contrast, is advancing a more functional model of leadership, where legitimacy flows from delivery: building infrastructure, mobilizing financing, and creating visible economic benefits. In this framing, Asia-Pacific cooperation is defined not just by rule-making but by the ability to implement solutions.

By prioritizing infrastructure, financing, digital connectivity, and the real economy, China is redefining both the terms of cooperation and the locus of leadership.

For decades, regional cooperation has been organized around frameworks governing trade, governance and security. While important, these frameworks can seem distant from the everyday realities of developing economies. China's approach begins differently by asking a practical question: What do countries actually need?

Across much of Asia, the answer has been consistent: roads, railways, ports, energy systems and access to capital. By focusing on these essentials, China has made cooperation visible, measurable and immediate. A railway that halves travel time or a port that unlocks trade is a concrete benefit in their daily lives.

At the center of this shift is infrastructure. Projects such as the China-Laos Railway, the Jakarta-Bandung High-Speed Railway and Hambantota International Port are connective tissues that bind the region closely together.

By reducing transport costs, opening inland regions to global markets and accelerating industrial growth, these projects are reshaping economic geography. Unlike traditional aid, infrastructure delivers visible, real-world benefits, making it one of the most persuasive forms of public goods in the region.

Yet infrastructure is capital-intensive, and this is where China's role becomes pivotal. Through the Belt and Road Initiative, its policy banks, investment funds, and the Asian Infrastructure Investment Bank, China has helped address Asia's long-standing financing gap. Many developing countries have struggled to secure adequate and timely funding. China's financing is often faster and less encumbered by political conditions, making it an increasingly attractive partner.

This financial role ensures that China is not only building projects but also shaping the broader system in which regional development unfolds.

China's influence is now deeply embedded in regional supply chains and trade networks, with the Regional Comprehensive Economic Partnership at the center. Its decision to offer zero-tariff treatment to least developed countries, with which it has diplomatic relations, shows that this cooperation is grounded in action, not rhetoric. It does not unfold solely in diplomatic forums, but is built in factories, logistics hubs and digital platforms. Rooted in the real economy, it is inherently more resilient, as supply chains are far more difficult to unwind than political narratives.

China's approach now encompasses food security, poverty reduction, green energy, and digital connectivity. These are areas that directly affect people's livelihoods. Meantime, it is advancing into frontier sectors such as healthcare, biotechnology, and artificial intelligence, signaling an ambition to shape the region's developmental and technological trajectory.

Beyond physical infrastructure, China's push into the digital domain is becoming equally consequential. Through the Digital Silk Road, it is expanding its presence in 5G networks, e-commerce ecosystems, digital payments and smart city development across the region. More importantly, this expansion is increasingly tied to standard-setting in emerging fields.

These are not merely technical domains, they are the building blocks of future economic and political influence. As digital systems become embedded in everyday life, the ability to shape their standards and architecture will matter as much as building roads or ports, positioning China at the forefront of a data-driven layer of regional integration.

Taken together, these efforts point to a larger ambition: China is positioning itself as a provider of comprehensive development goods.

Importantly, China is not dismantling existing regional structures. Rather, it is working through them. By engaging ASEAN-led mechanisms such as ASEAN+3 and the East Asia Summit, China reinforces the Association of Southeast Asian Nations' centrality rather than displacing it. Its participation in frameworks like the RCEP and institutions such as the AIIB further complements this approach.

By delivering tangible public goods, China has shifted the region's center of gravity toward infrastructure, connectivity and real economic integration. Cooperation is becoming less about what is said and more about what is built. The defining question for Asia-Pacific cooperation is no longer who sets the rules but who builds the systems others depend on.

The author is the founding director of the Belt and Road Initiative Sri Lanka.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

Editor's Note: As China launches its 15th Five-Year Plan (2026-30), policymakers are strengthening coordination between the "Export to China" and "Shopping in China" campaigns. The effort signals a clear commitment to expanding imports while promoting high-quality consumption. To explore what this means for global business, we invited executives from multinational corporations to share their perspectives on the opportunities in China's vast market, the role of their China operations in global strategy, and their outlook for the years ahead.

Q1 China's GDP grew 5 percent in 2025, reaching 140.19 trillion yuan ($20.52 trillion). For 2026, the government targets growth of between 4.5 percent and 5 percent, with a planned deficit ratio of around 4 percent. How do you assess the credibility and policies backing this target? Amid moderating global demand, what does China's relative growth certainty mean for your company's global capital allocation, earnings outlook and investor expectations? Does the combination of proactive fiscal policies and accommodative monetary measures reinforce your confidence in sustaining or expanding operations in China?

Ni: The 4.5-5 percent growth target reflects a pragmatic balance, prioritizing quality and sustainability amid rising uncertainties. It is underpinned by proactive fiscal and monetary policies, alongside a continued focus on developing new productive forces, advancing sustainability and strengthening industrial chain resilience.

Amid slowing global demand, China's relative growth certainty serves as a stabilizer for us. It reinforces our confidence in the market's long-term potential and highlights China's strategic role as both a key demand market and a central hub for supply chain optimization and regional coordination. At Kuehne+Nagel, the strategic importance of the China market continues to grow. To support Chinese companies' overseas expansion, we are strengthening resources and capabilities across our global network, including bolt-on investments and acquisitions.

Abebe: I am very pleased to see the importance the Chinese government places on its 2026 economic growth expectations and the increased policy support. The Chinese market is a vital pillar of Ethiopian Airlines' global route network, and its stability directly impacts our cargo volume and passenger load factors. We also look forward to leveraging China's proactive fiscal policies to drive demand for freight in categories such as machinery and cross-border e-commerce parcels between China and Africa. By utilizing our hub in Addis Ababa, we aim to facilitate global trade flows and serve as a robust aerial bridge between China and Africa.

Zhou: China's steady economic growth profoundly benefits livelihoods, fostering higher standards of living for its population. This includes growing consumer expectations for safe and nutritious diet options. As China's population becomes more urbanized and economically empowered, we observe increased appreciation for premium protein offerings, driving our strategic focus on product quality and sustainability.

Stable growth, underpinned by proactive fiscal policy and accommodative monetary measures, also strengthens the foundation for ongoing investment. This further reinforces our confidence in China's future and our continued engagement here. China's stable growth supports economic resilience and drives improvements in dietary patterns. This dynamic reinforces our commitment to expanding operations, investing in innovation and contributing to China's evolving food and feed landscape for the years to come.

Xu: China insists on high-level opening-up and continuously improves the business environment, offering Airbus a more stable environment for business development. The resilience and certainty demonstrated by the Chinese supply chain have also strengthened Airbus' confidence in continuously increasing its investment in China. Airbus inaugurated its second A320 Family FAL in Tianjin to support the global A320 Family ramp-up plan. Meanwhile, the Airbus Aircraft Lifecycle Service Center in Chengdu, Sichuan province, has begun aircraft dismantling and recycling, marking cooperation between Airbus and China covering the entire lifecycle of aircraft.

Q2 In 2025, China's exports rose 6.1 percent, newly established foreign-invested enterprises increased by 19.1 percent, and research and development intensity reached 2.8 percent of GDP. Against the backdrop of global supply chain reconfiguration, is China's role in your global strategy expanding? How do you evaluate China's integrated advantages — manufacturing depth, innovation capacity, infrastructure and market scale — in supporting your production networks and supply resilience? Does China function primarily as a market, a production base, an innovation hub, or increasingly all three within your corporate architecture?

Ni: Amid accelerating supply chain restructuring, China plays a multidimensional role for Kuehne+Nagel, as a key market, a critical hub and a capability center. Continued export momentum, rising foreign investment and sustained R&D underline China's strengths in manufacturing depth, innovation intensity, infrastructure efficiency and market scale.

China is both a major production and consumption base and a key gateway connecting Asia-Pacific with global markets. Its advanced port clusters, air hubs and sophisticated logistics infrastructure continue to strengthen its role across sea and air logistics. In the ongoing reconfiguration of global supply chains, China's role is being reinforced through diversification with the country remaining an irreplaceable node for high-value manufacturing and innovation-intensive activities.

Abebe: Amid the restructuring of global industrial chains, the stable growth of China's economy and technological innovation are driving rapid upgrades of supply chain systems. For Ethiopian Airlines, the Chinese market has become a core strategic pivot for our global strategy. China is not only a destination for passenger travel, but also a key point of origin in the global cargo network. We have launched routes to 11 cities in China, including the newly inaugurated freight route to Urumqi, Xinjiang Uygur autonomous region, precisely because we recognize the distinct industrial characteristics of different regions within China. The Chinese market serves as an indispensable "Asian hub" within our global network connecting Europe, Africa and South America.

Zhou: China is a strategic market for LDC, with its vast consumer base, deep manufacturing capabilities, robust innovation ecosystem and comprehensive infrastructure. LDC has continued to deepen its production footprint in China, investing in four greenfield projects to enhance its processing capabilities. The company has also established a global R&D center in Shanghai and launched two specialty feed ingredients production lines in Tianjin, transforming research outcomes into innovative products.

These developments reflect China's importance as a key market, production hub and innovation center for LDC. We are looking to further enhance our presence and deepen local partnerships, with a goal to ensure safe, reliable and sustainable food and agriculture supply chains for current and future generations.

Xu: China has great advantages in operational efficiency and resilience. China's supply chain has shown great resilience while its talent team and product quality are also very competitive. Airbus focuses on deepening and enlarging its supply chain in China with the "local for local" strategy, in collaboration with both State-owned enterprises and the private sector. Currently, around 200 suppliers in China support the production of Airbus commercial aircraft. We invest in high-quality industrial capabilities in China in a systematic way and are committed to serving as a model of cooperation in the high-tech aerospace industry between China and Europe.

Q3 China is advancing the unified national market, with an urbanization rate of 67.9 percent and total retail sales surpassing 50 trillion yuan. As domestic demand expands, what structural opportunities does this vast, increasingly integrated market present for your portfolio, distribution channels, and localization strategy? Does deeper market unification reduce operational fragmentation and compliance costs? How do you position your brand and product mix to capture demand from both top-tier cities and fast-growing lower-tier markets?

Ni: We believe the core opportunity of a large, unified national market lies not only in scale expansion, but in converting scale into efficiency, innovation and long-term competitiveness under a unified regulatory framework. The unified market enhances long-term certainty by lowering cross-regional operating costs and enabling scalable, standardized operations nationwide. Greater market integration also enables logistics providers to deliver cross-regional, integrated supply chain solutions more efficiently.

The combined effect of the development of a unified national market and domestic demand growth is driving structural demand for high-value logistics and supply chain solutions. This includes nationwide distribution and fulfillment networks, as well as end-to-end and more resilient supply chain solutions supporting manufacturing upgrading.

Abebe: For Ethiopian Airlines, China's efforts to advance the unified national market represent a precise structural and regional opportunity. As China's middle-income population continues to expand, demand for fresh, high-quality products from Africa is surging. Our cold-chain logistics capabilities will directly connect to Chinese kitchens, enabling Ethiopian coffee, Kenyan flowers and South African citrus fruits to be efficiently distributed nationwide via logistics hubs such as Zhengzhou, Henan province, and Ezhou, Hubei province.

Meanwhile, China's western region is undergoing rapid urbanization, generating strong demand for infrastructure, engineering machinery and consumer goods. Through our routes to Urumqi and Chengdu, we are well-positioned to support enterprises in western China in expanding globally.

Zhou: China's unified national market presents significant structural opportunities in line with LDC's growth strategy. We are seeing important demand growth for high-quality proteins, with China's annual per capita meat consumption increasing from 62 kilograms in 2014 to 72 kg in 2024 and leading to animal feed market expansion in the country.

Feed ingredient market growth by 7 percent year-on-year directly supports our strategy to diversify into value-added product lines and pursue further operational integration across value chains. Deeper market unification is reducing operational fragmentation and compliance costs, enabling the streamlining of logistics and regulatory processes across regions. This allows LDC to optimize supply chains and better serve our customers. Our investments in feed ingredients empower us to deliver tailored solutions for local market needs.

Xu: China is the second-largest economy with the largest aviation population in the world. Airbus is confident in the prospects of China's civil aviation market and predicts that China will require more than 9,500 new passenger aircraft and 730 freighters for fleet renewal and expansion. Airbus will support the high-quality development of Chinese airlines with highly efficient, new generation aircraft such as the A220, A320neo, A330neo, A350 and A350F models, as well as high-quality customer services in training, maintenance, materials, digital tech and connectivity.

Q4 China's trade-in program generated over 2.6 trillion yuan in sales in 2025, alongside the "Shopping in China" and "Export to China" initiatives. China's exports grew 6.1 percent year-on-year. How is your company aligning its China strategy to capture both domestic consumption upgrades and export-oriented opportunities? Do you see China increasingly as a global production and innovation base serving international markets? How are you balancing local demand expansion with China's role in your global export ecosystem?

Ni: We do not see China simply as a domestic market or an export platform, but as a strategic market combining both roles, driven by rising demand for high-quality, localized logistics services and China's continued role as a core global manufacturing and export hub.

China's consumption and trade are mutually reinforcing, evolving within a unified supply chain system. Supported by the upgrading of China's manufacturing base, from "Made in China" to "Designed and Created in China", together with an advanced logistics infrastructure, this dual role underpins our continued investment in China and enables us to better support customers' growth by fully leveraging our global network.

Abebe: The initiatives by the Chinese government to promote consumption and stabilize foreign trade are highly aligned with Ethiopian Airlines' business model. By operating direct cargo flights from key Chinese hubs, we transport China-made electronic products and cross-border e-commerce parcels to destinations in Africa, Europe and South America.

By leveraging the distribution capabilities of the Addis Ababa air cargo hub, we also transport fresh African products such as avocados, coffee and seafood to China, meeting rising demand driven by consumption upgrading through the speed and efficiency of air freight.

The launch of the Urumqi route directly connects western China's consumer market with South America, Europe and Africa, further enhancing our global cargo network. We believe Ethiopian Airlines will contribute further to cargo and passenger infrastructure development in collaboration with Chinese companies.

Zhou: LDC has played a key role in ensuring safe, reliable and sustainable flows of agricultural goods, reinforcing our position as a trusted partner in the world's food and agriculture supply chain. Today, we remain committed to fulfilling this key role in China and globally.

We are looking to expand our integrated specialty phospholipid production model — pioneered through innovation and advanced oilseed processing capabilities in China — to other LDC plants worldwide. Meanwhile, we have launched various plant-based food and feed ingredients and solutions, tailored to evolving needs in China.

Looking ahead, we believe that China's integrated market and innovation-driven environment will continue to power both local and global developments.

Xu: Transporting goods to overseas destinations requires efficient logistics while also driving the increasing demand for advanced freighters. The new generation long-range A350F freighters and the A320/A330 Family P2F (passenger-to-freighter) aircraft meet the needs of different scenarios, support Chinese cargo airlines in setting up their global cargo networks and create secure and resilient logistics chains for Chinese products going global.

A significant proportion of the Chinese supply chain is also delivering work packages outside of China, helping Chinese companies integrate into Airbus' global supply chain, thus empowering them with more opportunities to expand their business in the international aviation sector.

Q5 China last year reduced energy intensity by 5.1 percent, raised the nonfossil energy share to 21.7 percent, and expanded new-type energy storage capacity beyond 130 gigawatts. Artificial intelligence and advanced technologies remain at the forefront globally. Where do you see the strongest partnership potential in China's green transition and AI-driven industrial upgrading? Are you expanding investment in renewables, digitalization, smart manufacturing or carbon management solutions? How central is China to your global sustainability roadmap and next-generation technology deployment?

Ni: China's pace and scale of progress in sustainability and digitalization are leading the way on a global level. China is no longer merely an implementation market for global sustainability strategies, but is increasingly becoming a co-creator of rules, models and capabilities.

For Kuehne+Nagel, China is not only a key market for deploying sustainable and digital solutions, but also a platform where we work closely with customers and partners to develop, test and scale new models and technologies. Many solutions first validated in China are now being replicated and rolled out across our global network as scalable best practices. We see the convergence of sustainability and AI as a key driver of future collaboration.

Abebe: We have noted China's progress in reducing energy intensity and its breakthroughs in new energy technologies, which provide valuable references for exploring the application of sustainable aviation fuel and upgrading airport ground support systems.

Meanwhile, the deeper application of AI aligns closely with Ethiopian Airlines' strategic priorities in enhancing transit efficiency at Addis Ababa Bole International Airport and optimizing its African route network scheduling.

We look forward to exploring opportunities with Chinese partners by combining China's digital solutions with Ethiopian Airlines' global route network and geographic hub advantages.

Zhou: China's recent strides in reducing energy intensity, expanding the share of nonfossil energy and rapidly scaling energy storage capacity present opportunities for global partners in relation to renewable energy and innovation-driven industrial upgrading.

At LDC, we are aligned with China's ambitions in this area, recognizing innovation, digitalization and sustainability as strategic growth enablers. As such, we are committed to leveraging innovative technologies to drive operational excellence and efficiency, as well as environmental stewardship across value chains.

Sustainability also remains central to our business model and operations. In China, for example, we have increased the use of renewable energy sources to reduce our operational carbon footprint.

Xu: China is developing new sustainable energy sources and has unique advantages in developing the sustainable aviation fuel industrial chain. Airbus has been playing a catalytic role in developing the SAF ecosystem in China by using and promoting SAF, working with stakeholders to explore the large-scale production of SAF and contributing to the development of sustainable aviation in China.

Airbus China has received a value-added tax license, enabling it to offer more digital service solutions to Chinese airlines to enhance their operational efficiency, such as Skywise, a big-data platform used for real-time aircraft health monitoring and preventive maintenance. For smart manufacturing, Airbus has set up its China R&D and innovation center in Suzhou, Jiangsu province. The center is advancing the implementation of several new technology projects for the Airbus sites in Europe, Tianjin and Aircraft Lifecycle Service Center in Chengdu.

Hainan province will step up efforts to link China with the global economy over the next five years, officials said on Friday, as the island's free trade port enters a new phase following the launch of island-wide special customs operations.

At a State Council Information Office news conference in Haikou, Governor Liu Xiaoming outlined the province's strategy for the 15th Five-Year Plan period (2026-30), describing it as a pivotal stage in advancing the Hainan Free Trade Port. The new phase follows the launch of island-wide special customs operations on Dec 18, 2025, marking the completion of the FTP's initial development framework.

To support this shift, Hainan will expand institutional opening-up by aligning with international trade rules and standards under frameworks including the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, while advancing the China-ASEAN Free Trade Area 3.0 upgrade, Liu said.

During the 14th Five-Year Plan period (2021-25), Hainan's goods and services trade each grew at an average annual rate of more than 20 percent. For the next five years, the province targets average annual growth of about 10 percent in goods trade and 20 percent in services trade, along with 10 percent annual growth in the actual use of foreign capital.

These policies are already translating into business activity on the ground.

A case in point is the coffee industry. On Dec 18, a batch of blended coffee beans produced by Charoen Pokphand Group (Hainan) Xinglong Coffee Industry Development Co, a Sino-Thai joint venture in Wanning, was shipped from Qionghai Boao International Airport to Beijing.

The beans, sourced from Colombia, were roasted, blended and processed at the company's automated facility in Xinglong Coffee Valley, achieving a value increase of more than 30 percent. The shipment became the first product from Wanning to qualify for the value-added tariff exemption policy for domestic sales.

Earlier, the company began operating under a new model — importing raw materials and exporting finished products. In its first shipment to Australia, it saved 8 percent in import tariffs and 13 percent in value-added tax on coffee beans.

"The most profound change comes from institutional opening," said Ye Jian, general manager of the joint venture. "Hainan is becoming a key node in the global coffee supply chain."

Ye said the province's proximity to Southeast Asian coffee-producing countries, combined with access to China's vast consumer market, gives it a unique advantage. Special customs operations, he added, are lowering costs, improving supply chain efficiency and attracting talent, helping shift Hainan's role from a raw material gateway to a global processing hub.

"A cup of Xinglong coffee might use beans from Colombia, be processed in Hainan and sold in Australia — that's a vivid example of how the Hainan FTP connects China with the world," he said.

Policy support has expanded in tandem. Ahead of the launch of special customs operations, Hainan widened its zero-tariff raw materials list to about 6,600 items, adding unroasted coffee beans and 296 others on Feb 1, 2025. By the end of 2025, the number of eligible companies rose by more than 11,000.

chenbowen@chinadaily.com.cn

Leveraging the strengths of the RCEP is imperative in the context of changing geopolitical and economic landscapes

In view of the profound and complex changes in the development environment both within and outside the region, only through rule upgrading, institutional improvement, deeper opening-up and governance strengthening to build the Regional Comprehensive Economic Partnership into a free trade arrangement that is implementable, monitorable, binding and governable, can it maintain its momentum and turn challenges into opportunities.

The world has entered a new period of turbulence and transformation, and the role of the RCEP as a stabilizer for free trade has strengthened. Guided by openness, inclusiveness, mutual benefit and win-win results, the RCEP provides important certainty and stability for the Asia-Pacific economy, and even the global economy.

As risks of global supply chain disruptions rise, the RCEP's function in coordinating and integrating industry chains has increased. For instance, in the energy sector, all RCEP members, with the exception of Australia and New Zealand, generally rely heavily on energy supplies from the Middle East. The RCEP needs to optimize institutional arrangements such as tariff concessions, cumulative rules of origin and customs clearance facilitation through intra-regional economic and trade cooperation, in order to accelerate the formation of a more closely integrated regional economic cooperation system and enhance the resilience of industrial and supply chains including energy.

Against the backdrop of tightening global market access, RCEP economies are well-positioned to advance greater opening-up in customs procedures, inspection and quarantine, cross-border investment and business personnel mobility. This will help attract international capital that has been severely impacted by geopolitical risks, especially capital from the Middle East. It is expected that the scale of foreign investment attracted by RCEP economies will expand further in the coming years. With the full and deepening implementation of the RCEP, the dividends from its core rules, including tariff concessions, cumulative rules of origin, and trade facilitation, are being delivered in a concentrated manner, making the RCEP a core engine for regional trade and investment growth. The latest data from the China's General Administration of Customs show that trade volume between China and other RCEP members rose from $1.48 trillion in 2020 to $1.94 trillion in 2025. As long as free trade under RCEP remains stable, global free trade stands a chance to stay stable.

Data from the China Council for the Promotion of International Trade for 2025 shows that the number of RCEP certificates of origin issued by the CCPIT system increased by 23.93 percent year-on-year, with the total value of such certificates rising by 19.37 percent year-on-year.

Regional industry and supply chain integration has also been strengthened with the implementation of the RCEP. For example, the data in the 2025 RCEP Development Report released by the China Institute for Reform and Development shows that in 2024, intra-RCEP trade in intermediate goods accounted for more than 68.3 percent, with deeper integration in industry chains such as electronics, automobiles and new energy.

China's manufacturing capacity, the technologies of Japan and the Republic of Korea, the low-cost production of Southeast Asian nations, and the resource endowments of Australia and New Zealand have formed a clear pattern of regional economic and trade complementarity. Cooperation on industrial parks within the region, such as the "Two Countries, Twin Parks" (the Malaysia-China Kuantan Industrial Park in Pahang state and the China-Malaysia Qinzhou Industrial Park in the Guangxi Zhuang autonomous region) model between China and Malaysia, has accelerated, promoting capacity coordination and technology sharing among members and reducing the risk of disruptions to industry and supply chains. In the face of the bullying measures of the United States such as so-called reciprocal tariffs and transshipment clauses, the RCEP has yet to formulate a joint response strategy. Even within the Association of Southeast Asian Nations, coordinated joint action has not been achieved, which has, to a certain extent, negatively impacted regional economic integration. Faced with new changes and challenges in the geopolitical landscape, the RCEP members need to strengthen consensus on major issues and strive for joint action. For example, they should establish an emergency coordination mechanism to conduct consultations and communication on major external shocks and formulate joint responses.

Against this backdrop, the RCEP members should further expand tariff concessions. Members with capability should take the lead in increasing the scope and accelerating the pace of tariff reduction. The RCEP members should also significantly expand the openness of their services trade markets, Among the RCEP members that currently adopt a positive list for services trade, five are committed to switching to a negative list regime within six years after the agreement's entry into force in 2022. Time is pressing and progress needs to be accelerated.

In terms of higher-standard rules, the RCEP has formed a relatively unified regional rules framework in areas such as trade in goods, rules of origin, customs procedures and trade facilitation. Going forward, the key is to upgrade the RCEP to higher-standard rules, reduce the costs of crossborder layout and intermediate goods flows, and turn the RCEP's institutional advantages into tools for enterprises to strengthen the resilience and risk resistance of their regional industrial and supply chains. This includes advancing the upgrade of rules of origin from partial accumulation to full accumulation as soon as possible.

In terms of the RCEP governance mechanism, efforts should be accelerated to establish an independent and efficient RCEP Secretariat and formulate an action plan for collective responses to regional risks. Meanwhile, the outline for China's 15th Five-Year Plan (2026-30) clearly calls for expanding the RCEP and its review process. Thus, it is imperative to accelerate the breakthrough in RCEP expansion. In particular, the accession of Hong Kong, China has an important role to play in unlocking the potential of the RCEP and raising its level of openness.

The more turbulent the geopolitical landscape, the more prominent the RCEP's strategic role becomes, and the more it should help strengthen certainty within the region. The more severe the external risks and challenges are, the greater the urgency for RCEP to deepen economic and trade cooperation, and the more necessary it is to enhance the predictability of regional coordination. The more fragmented the external environment becomes, the more urgent it is to jointly advance the upgrading of RCEP. In this way, it can inject greater certainty into the development of the world economy.

The author is the president of the China Institute for Reform and Development and the president of Hainan Institute for Free Trade Port Studies. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

Amid global challenges and uncertainties, experts said that the regional grouping should leverage on the world's largest trade pact, the Regional Comprehensive Economic Partnership, or RCEP.

RCEP is a free-trade agreement between China, Japan, South Korea, Australia, New Zealand and the ASEAN member states.

According to World Bank data from 2020, the 15 participating countries account for about 29 percent of the global population or 2.3 billion people.

These economies boast a combined GDP of $25.9 trillion, accounting for 30.6 percent of the world's GDP, and they represent $10.09 trillion, or 28.33 percent, of global merchandise trade.

During the 57th ASEAN Economic Ministers' Meeting on Sept 23, meetings were held between these ministers and representatives of the RCEP.

Economist Yeah Kim Leng of Sunway University, Malaysia, pointed out that the pursuit of unilateral import tariffs and the United States-centric economic agenda would mean that it is crucial for all other countries to step up trade and economic cooperation.

"This is not just to counter US policy shifting away from free trade and multilateralism, but also to deepen economic relationships to offset the loss of US markets and to stabilize global supply chains," he said.

Malaysia's current leadership role in ASEAN offers not only the opportunity to expand trade and investment among member countries, but also to integrate ASEAN with other free trade agreements where Malaysia is a member.

As such, he said the RCEP is particularly important since it is the largest free trade bloc.

Yeah said concrete actions to expand trade and investment will be crucial to offset the uncertainties caused by Trump's tariffs and the expected decline in trade with the United States.

At the same time, he said it is important for Malaysia to nurture a wide range of trading partners and arrangements.

Pushing agenda jointly

"ASEAN is a natural focus for Malaysia to leverage and use its position as chair of ASEAN to ensure there is momentum in closer trade links.

"Since ASEAN is a key group in RCEP, which includes major trading powers around Asia, pushing the trade agenda jointly is very important to maintain export markets given current economic uncertainty," he said.

With the ASEAN Summit set to take place in late October, it is crucial to have some wins to announce on trade and "hopefully to make further progress on long-term tariff reduction", he said.

Bank Muamalat Malaysia Berhad Chief Economist, Mohd Afzanizam Abdul Rashid, said the RCEP could act as a cushion against tariff impacts and help ASEAN economies diversify their markets.

"RCEP essentially involves major economies such as Japan, China, Australia, New Zealand and South Korea. Hence, we can hope that there will be technology transfers, more opportunities for access to new markets and improved trade linkages," he said.

"It will be a catalyst for better coordination and above all, the buy-ins."

Economist Geoffrey Williams said that, as protectionist policies are being amplified, countries should collaborate on rule-based international trade, centered on fair trade as the driving force for global integration.

He named e-commerce as one tool that has become a catalyst for international trade.

The Star, Malaysia

China is intensifying its institutional opening-up by moving toward "customs closure" in the Hainan Free Trade Port. This independent customs operation means goods entering or leaving the island province of Hainan, unless destined for any place on the Chinese mainland, will be subject to fewer customs checks and potentially lower or no tariffs.

The move is not just a technical shift in border management, but also a broader transition from policy experimentation to system-wide implementation, and regional pilot to national strategy, in order to promote trade and investment in Hainan, and attract more businesses and investments.

For international observers seeking to understand how China is adapting to a rapidly changing global landscape, Hainan offers a case study in balancing opening-up with resilience, innovation with governance.

Over the past decade, China has been adhering to a more targeted, rules-based trade policy, with the Hainan Free Trade Port being the most comprehensive example of this policy shift. Conceived as a high-standard, global trade and investment platform, the port is designed to test the feasibility of deepening liberalization under a clearly defined institutional framework.

"Customs closure" is central to this vision. It is based on a "first line" and "second line" model, with the "first line" managing the flows between Hainan and overseas markets under simplified procedures, and the "second line" — linking the Hainan island to other provinces and regions — applying stricter regulatory oversight. This allows Hainan to operate as a separate customs territory while remaining within China's sovereign borders, and aligning with international trade rules.

The "customs closure" is not just about facilitating trade; it is also about creating a predictable and transparent policy environment to attract more international investors, and enable China to pilot advanced regulatory models — for example, on taxation, data governance, environmental standards and digital trade — in a controlled but globally visible way.

Hainan's strategic location at a crossroad of the Pacific and Indian oceans allows it to play a unique role in facilitating regional economic integration. As free trade agreements such as the Regional Comprehensive Economic Partnership gather momentum, Hainan is well-positioned to serve as a gateway between China and Southeast Asia.

In particular, for mainland-based companies looking to expand their regional footprint, Hainan provides an operational base, offering simplified procedures and better access to overseas markets. For foreign enterprises, it offers entry into the Chinese market.

However, China realizes the importance of risk control. When it comes to food safety, public health, border security, bio-security, anti-smuggling operations and other fields, the port follows best international practices and enforces strict regulations. Its goal is to strike a balance between opening-up and security, flexibility and oversight.

Hainan's recent trade performance has fulfilled the early promise of the free trade port model. Between 2020 and 2024, the port's average annual growth in goods and services was over 30 percent, significantly higher than the national average.

But the real test will begin with the "customs closure", because it will prompt Hainan to move toward full implementation of key institutional reforms: zero tariffs on designated goods, a streamlined tax system, simplified investment approval, and open access to sectors such as education, healthcare and finance.

Also, the customs closure will lay the groundwork for wider institutional innovations, reflecting China's efforts to align with international rules, and strengthened cross-border data governance, including adopting a "negative list" model to ensure the orderly flow of data.

Hainan is also set to explore new standards for green trade and sustainable development, including mechanisms for assessing supply chains' carbon emissions, eco-friendly practices and ecological compliance. The education sector, too, is expected to benefit from high-level opening-up, with Hainan allowing qualified foreign universities to establish campuses with full academic autonomy. And to promote talent mobility, the authorities will implement a more inclusive, points-based skilled immigration system, along with a more flexible approach to granting visa and residence permits to international professionals.

These initiatives represent a conscious effort to build a globally competitive, innovation-oriented environment to attract long-term investments and high-level talents, and build global trust.

One of the key challenges in institutional opening-up is consistency. The Hainan Free Trade Port Law, enacted in 2021, provides legal support for the port's development. It defines Hainan as a customs-supervised special zone operating as a separate customs territory within the national territory. This clarity will attract more investors.

The law will also help achieve a number of policy targets. For example, by the time of full "customs closure", several taxes, including VAT, consumption tax and vehicle purchase tax, will be merged or replaced under a simplified regime, reducing transaction costs, making policies more transparent, and creating a level playing field for all types of enterprises.

The move toward "customs closure" in the Hainan Free Trade Port comes at a time when global economic governance is in flux, multilateral trade mechanisms face uncertainty, supply chains are undergoing reconfiguration, and economic security is increasingly prioritized.

Hainan provides an apt example of how countries can implement pragmatic, phased and rules-based opening-up. Rather than seeking confrontation or decoupling, China is integrating with the world through institutional innovation. The Hainan Free Trade Port is one step in this journey. It may not address all the challenges, but offers a meaningful pathway to build trust, create value, and share the fruits of globalization.

The author is the president of China Institute for Reform and Development and Hainan Institute for Free Trade Port Studies. The views don't necessarily represent those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

Guangxi, a key gateway for China to advance high-level opening-up and promote cooperation with the Association of Southeast Asian Nations, is poised to facilitate access to the vast markets of both ASEAN and Regional Comprehensive Economic Partnership countries.

Vice-Minister of Commerce Sheng Qiuping said the ministry will support Guangxi in leveraging its geographic advantages to boost the flow of high-quality ASEAN and RCEP goods into the Chinese market.

Sheng made these remarks during a "618" shopping festival event held in Nanning, Guangxi Zhuang autonomous region, on Wednesday.

The festival, themed "ASEAN Fruits Gather in Guangxi", highlighted the region's growing role as a distribution hub for Southeast Asian produce and products. Guangxi, China's top fruit-producing region, is often called the country's "fruit basket" and serves as the main entry point for ASEAN fruits.

Chen Gang, Party secretary of Guangxi, emphasized the region's strategic position in China-ASEAN cooperation and its role in promoting cross-border trade and regional economic integration.

The event brought together representatives from ASEAN and RCEP countries, local governments, suppliers, and trade platforms. It showcased Guangxi's model of "ASEAN production, Guangxi distribution, and China sales". It aims to deepen ties in areas such as cross-border e-commerce and cultural tourism, accelerate regional economic integration, and contribute to building a closer China-ASEAN community of shared destiny.

Samheng Bora, secretary of state ministry of commerce, Cambodia, expressed optimism about the imminent finalization and completion of the durian import agreement between Cambodia and China, foreseeing continued growth in bilateral trade. He called for building a prosperous future on the foundation of friendship and shared visions.

A number of cooperation agreements were signed at the event covering ASEAN fruit procurement, RCEP product processing, and nationwide sales channels.

HEFEI -- From new energy vehicles (NEVs) to shared visions of a greener future, low-carbon development brought China and its fellow Regional Comprehensive Economic Partnership (RCEP) member states closer together at a recent dialogue in Hefei, East China's Anhui province.

The dialogue was focused on NEVs and advanced photovoltaic industrial and supply chains, and spotlighted the growing resolve of participating countries to transform mobility and advance sustainable development.

It was a key part of the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum, which ran from June 4 to 6 and brought together approximately 300 delegates from all 15 RCEP member states. The forum yielded 27 cooperation deals spanning trade, technology and sister-city ties.

Under the RCEP framework, a number of joint projects were unveiled and signed during the event, reflecting a shared commitment to sustainability and deeper regional collaboration.

As protectionism and unilateralism continue to challenge global supply chains, the electric vehicle industry is facing increasing uncertainty.

Against this backdrop and as the world's largest free trade agreement by population and trade volume, the RCEP is emerging as a stabilizing force, bringing greater certainty to the global economy. This perspective was echoed by many forum participants.

Under the RCEP framework, NEV cooperation between member states is gaining strong momentum. In May, PT SGMW Motor Indonesia (Wuling) celebrated the production of its 3-millionth electric vehicle globally, and has manufactured 40,000 units at its plant in Cikarang, West Java. Geely reached a key milestone with the trial production of its EX5 model at its factory in Purwakarta, Indonesia, which is set to begin mass production in the third quarter.

Meanwhile, Chinese electric vehicle giant BYD has begun construction on a passenger vehicle plant in Cambodia's Sihanoukville Special Economic Zone. With a planned annual capacity of 10,000 vehicles, the plant is expected to start operations by the end of this year.

Representatives at the forum noted a clear shift in NEV cooperation among RCEP members -- from early-stage vehicle exports to deeper local integration. This transition has been marked by the establishment of regional manufacturing hubs and the development of full supply chains, including battery materials and key components.

SAIC-GM-Wuling Automobile's factory in Indonesia, for example, has adopted a comprehensive setup encompassing both car manufacturing and the supply of parts to support the upgrade of the country's auto industry.

Major Chinese battery makers such as China Aviation Lithium Battery (CALB), Gotion High-Tech and SVOLT Energy Technology have also expanded into RCEP countries, building factories in Thailand, Vietnam and beyond. Some have already begun local production, accelerating the regional growth of an electric vehicle ecosystem.

"ASEAN represents a vibrant and dynamic region, with rising demand for mobility solutions, growing environmental awareness, and a youthful population that embraces change," said Edmund Araga, president of the Electric Vehicle Association of the Philippines.

In recent years, RCEP members have set goals to cut carbon emissions. Cambodia is aiming to achieve net-zero emissions by 2050 and increase its renewable energy share to 70 percent by 2030. Thailand is planning for electric vehicles to account for 30 percent of its car production by 2030, and to reach carbon neutrality by 2050.

"Together, we represent more than 2.3 billion people and around 30 percent of global GDP. That is not just economic scale -- it is social responsibility," said Bhokin Bhalakula, former president of the National Assembly of Thailand and chairman of the Thai-Chinese Culture and Economy Association, speaking of the RCEP member states.

"RCEP has established a mechanism for long-term cooperation for us," said Dennis Chuah, president of the Electric Vehicle Association of Malaysia, adding that battery development and recycling are expected to become key areas of long-term cooperation between Malaysia, China and other RCEP members.

As the host city of the dialogue, Hefei is making big strides in the new energy sector. In 2024, the city's NEV output exceeded 1.37 million units, with the total value of its industrial chain hitting 260 billion yuan ($36.19 billion). Its solar and energy storage sectors also saw rapid growth, exceeding 180 billion yuan.

According to the China Association of Automobile Manufacturers, China produced nearly 4.43 million NEVs in the first four months of 2025, up 48.3 percent year-on-year, with sales rising 46.2 percent to 4.3 million units. NEVs accounted for 42.7 percent of all new vehicle sales during the period.

"China has become a global leader in NEVs -- not just in terms of production, but in R&D, battery innovation, infrastructure and scale," Araga said. "Together, we have the power to shape the future of mobility in Asia and the world."

There are three ways to look at the United States challenging the global free trade order with its "tariff stick".

According to a World Trade Organization report, countries joining the WTO led to an average 140 percent increase in trade with members and raised economic growth rates by 1.5 percentage points.

By 2035, the Regional Comprehensive Economic Partnership is expected to boost the ASEAN's GDP growth by 4.47 percentage points.

With US-led economic globalization reaching its "demise", the RCEP should be steadfastly advanced to counter the US' trade war.

It should be noted that RCEP is a very dynamic free trade area.

As the world's largest FTA, the RCEP accounts for one-third of the world's total economic output, trade value, population, and foreign investment. From 2010 to 2023, the average annual GDP growth rate of RCEP members reached 4.5 percent, outpacing the global average by 1.7 percentage points.

As a key regional driver, from 2016 to 2023, the total trade-to-GDP ratio of ASEAN nations increased from 84 percent to 93 percent. This demonstrates that maintaining a stable free trade order is decisive for the growth of ASEAN and RCEP economies. According to International Monetary Fund projections, from 2023 to 2029, the region's GDP will expand by $10.9 trillion.

The RCEP also plays the role of critical lever. Be it the Biden administration's "Indo-Pacific" Economic Framework that lacks tariff concessions and market access provisions or the Trump administration's "America First" approach and "reciprocal tariffs", both represent protectionist and exclusionary policies. As the US makes its market increasingly inaccessible, it becomes imperative to make good use of the RCEP's big unified market.

In 2023, ASEAN's exports to China accounted for 15.8 percent of its total exports — 1 percentage point higher than its exports to the US. Additionally, ASEAN has been China's largest agricultural trade partner since 2017. Leveraging the China-ASEAN FTA 3.0's superior trade facilitation measures will build integrated supply chains.

China, Japan, and the Republic of Korea collectively account for over 80 percent of the RCEP's total economic output.

The OECD data reveal that the ROK's Services Trade Restrictiveness Index is 80 percent higher than the OECD average, while Japan's STRI is roughly double that of major developed economies. Doubling the level of service trade among the three nations could unlock at least $1.4 trillion in new market opportunities, exceeding the current total value of RCEP members' goods exports to the US.

By 2035, China's producer service sector is projected to grow from its current 30 percent of GDP to 50-60 percent. Meanwhile, the share of trade in services in China's total foreign trade is likely to increase from 14.6 percent today to over 20 percent. From now until 2030, China's cumulative imports from developing countries (including ASEAN) are anticipated to exceed $8 trillion, replacing the US as the region's new consumption hub. It is essential to effectively leverage ASEAN's pivotal role as the center of RCEP. This requires expanding RCEP's membership. For instance, 70 percent of Hong Kong's investment and trade activities occur within the RCEP region. Hong Kong's accession to RCEP would drive comprehensive development.

Recently, Malaysian Prime Minister Anwar Ibrahim announced that a trilateral summit involving China, ASEAN, and the Gulf Cooperation Council will be held by the end of May to discuss economic and trade cooperation. Advancing economic and trade cooperation with the Shanghai Cooperation Organization will also be important. Therefore, the regional economies should jointly build the RCEP to a higher level.

The transition period for "zero tariffs" on critical raw materials and key components should be shortened. Also facilitate the shift from "country-specific tariff concessions" to "unified tariff concessions "among key supply chain nations.

It is necessary to coordinate and expedite the review of relevant provisions in the RCEP's chapter on rules of origin, advancing the transition from "partial cumulation" to "full cumulation".

The average STRI of RCEP members has decreased from 0.29 in 2021 to 0.27 in 2024, but is still higher than the global average of 0.19. It is recommended to promote the transition from "positive lists" to "negative lists" for services trade among RCEP members.

Asia's share of global digital services trade exports touched 27.37 percent in 2023. It is estimated that by 2030, facilitated by Digital Economy Framework Agreement, the size of ASEAN's digital economy will exceed $1 trillion. Efforts should be made to jointly establish cross-border "Digital Free Trade Zones" and "Digital Economy Cooperation Parks".

Countries must support the ASEAN Secretariat in monitoring and coordinating RCEP's operations; and establishing a dedicated RCEP Dispute Settlement Committee. Also in establishing an RCEP Secretariat at an appropriate time.

The author is president, China Institute for Reform and Development (CIRD). The views don't necessarily represent those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

Establishing smooth marine economy connectivity between China and the Association of Southeast Asian Nations will facilitate the sustainable development of both sides and foster the new regional maritime cooperation paradigm of "leading governance through collaboration".

In March 2023, the China Institute for Reform and Development, in collaboration with some think tanks based in ASEAN member states, launched the "Initiative to Promote China-ASEAN Blue Economy Integration". Accelerating the process of establishing maritime-economic connectivity between China and ASEAN and promoting the efficient allocation of marine resources will unlock the growth potential of the regional blue economy, helping build a new pattern of blue economic integration between China and the Association of Southeast Asian Nations.

The deepening trade cooperation between China and ASEAN has strengthened the demand for better, smoother marine economy connectivity between the two sides, especially because maritime transport accounted for more than 94 percent of China's foreign trade and over 60 percent of ASEAN's foreign trade, and 65 percent of China-ASEAN trade in 2023. Hence, the marine economy has become particularly crucial for the sustainable development of both China and ASEAN.

Since the marine economy contributed only 7.9 percent to China's GDP compared with about 20 percent to ASEAN's GDP, the two sides need to leverage connectivity to use their complementary advantages to develop a "blue engine" for economic growth.

However, ASEAN member economies lag in infrastructure development. For instance, ASEAN economies account for only three of the world's top 20 ports. Limited port accessibility, the absence of cooperation mechanisms, inefficient customs and border management, below-par logistics service quality are some of the challenges facing ASEAN members.

The marine economies of China and ASEAN are highly complementary, with China enjoying technological advantages in ocean fisheries, infrastructure construction and renewable energy development, while most ASEAN member states enjoy resource and cost advantages. Also, the two sides have similar marine environments and face some common challenges including climate change and marine pollution.

For example, while about 625 million people in ASEAN depend on the sea for their livelihoods, fish stocks in the South China Sea have declined by 70-95 percent since the 1950s. Against this backdrop, the Regional Comprehensive Economic Partnership has unified many trade rules and standards, including those pertaining to the blue economy.

As such, promoting regional maritime connectivity, establishing channels for China-ASEAN marine industry cooperation, and unleashing the potential of the marine economies under the RCEP framework will contribute to the sustainable use of marine resources.

The two sides should also jointly advance port infrastructure construction, renovation and upgrading, establish a China-ASEAN port network for information sharing, unify standards and recognize each other's regulations. They should also provide financial and technological assistance for less-developed ASEAN members to help them improve their port infrastructure and standards, build a "customs cross-border cooperation platform" to enable the exchange of information on inspection, quarantine and certification processes, and develop "smart ports" at key locations.

Establishing regular "multi-stop" international cruise routes, developing specialized tourism projects and expanding regional route networks, using the RCEP's rules on investment to promote investment in fisheries, developing deep-sea and offshore fishing operations and modern aquaculture, setting up joint deep-sea technology laboratories and R&D centers for marine biomedicine and new materials, and advancing marine technology trade liberalization are some of the other areas that call for greater attention from China and ASEAN.

Besides, by the end of 2022, the installed offshore wind energy capacity of ASEAN as a whole accounted for only 0.3 percent of its total installed energy capacity. In sharp contrast, China's offshore wind power grid-connected installed capacity is more than half of the global total.

Therefore, the two sides should explore the possibility of "zero-tariff" transition periods under the RCEP framework for generating offshore wind power, and trading in wind power materials and equipment. The two sides should also leverage RCEP rules to ink bilateral and multilateral free trade agreements to jointly develop free trade energy processing zones and industrial parks and establish environmentally friendly fishing technology standards.

Using the RCEP well and allowing marine products and services to enjoy the benefits of the RCEP agreement will reduce the costs of blue economy cooperation between China and ASEAN.

However, there is a need to upgrade the RCEP's rules of origin from partial to full accumulation for maritime products, recognize the authorized economic operator status of marine enterprises to enable preferential inspection and timely disposal of time-sensitive cargo such as fresh seafood.

China, being a major tourism market, is opening up its marine tourism market and supporting both domestic and ASEAN enterprises to develop South China Sea cruise routes and products primarily targeting Chinese consumers. It is also promoting cooperation in fishery operations, aquaculture technology exchanges and marine biological resource development. The focus is on strengthening aquaculture collaboration, leveraging Chinese capital and technology to explore the joint development of ecological, high-value deep-water cage systems and large-scale intelligent farming operations.

In this context, the island province of Hainan enjoys a strategic position at the "8-shaped" intersection between China's massive domestic market and the Southeast Asian markets. Its geographical advantages, industrial base, cooperation foundation and policy and institutional advantages make it suitable to serve as a vital hub for China-ASEAN regional marine economy connectivity. So China should leverage the Hainan Free Trade Port's zero-tariff policies for inland sales of processed and value-added goods to encourage ASEAN enterprises to invest in seafood processing facilities, build on Yangpu Port's special policies, strengthen cooperation with ASEAN ports and build it into a transportation hub between the two markets.

The key practical measures include establishing ASEAN-oriented "offshore warehouses" at Yangpu Port to reduce the relatively high China-ASEAN maritime logistics costs through coordinated warehouse and distribution models and establish a China-ASEAN marine expo to build the Hainan Free Trade Port into a crucial platform for trade and cultural exchanges between China and ASEAN.

The author is president of the China Institute for Reform and Development.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.