Regional cooperation can open doors to global growth

Chi Fulin, China Daily

The Regional Comprehensive Economic Partnership (RCEP) has successfully integrated 15 Asia-Pacific economies into one of the world’s most dynamic industrial and supply chain networks. It is now an indispensable force advancing regional economic integration and a new phase of globalization.

Yet RCEP stands at a critical juncture. In today’s uncertain environment, standing still means falling behind. The region faces a choice: allow geopolitical fragmentation to weaken its unified market, or strengthen resilience through deeper integration.

A development-oriented approach remains the defining feature of RCEP, but geopolitical tensions are exerting growing pressure. Most RCEP economies remain highly dependent on external energy supplies. In 2025, more than 80% of crude oil imports to the region passed through the Strait of Hormuz. According to projections by the Asian Development Bank, if the Iran conflict extends into the third quarter of 2026, growth across developing Asia-Pacific economies could slow significantly.

This uncertain environment makes stronger cooperation imperative. RCEP members should deepen industrial coordination and promote regionalized energy and manufacturing supply chains, reducing dependence on vulnerable maritime routes and improving supply chain security. At the same time, non-economic factors should not undermine the agreement’s development goals.

Globally, the greatest advantage of China and the Association of Southeast Asian Nations lies in the certainty of growth. If ASEAN becomes the world’s fourth-largest economy and China the largest within the next decade, the global economic landscape will be reshaped.

RCEP has already become a major force supporting free trade. From 2021 to 2025, intra-RCEP trade rose from $4.9 trillion to $6.1 trillion. From 2021 to 2024, the region recorded average annual GDP growth of 3.6%, contributing nearly 40% to global growth.

To build on this momentum, RCEP rules must be fully implemented. Members should accelerate measures covering digital payments and electronic invoices while expanding cooperation in artificial intelligence and financial technology. Regional division of labor should also be optimized. In 2024, intermediate goods accounted for more than 68% of total RCEP trade, well above the global average.

Protectionism also makes it necessary to establish a regional supply chain emergency coordination mechanism and deepen market opening. Members should aim to increase zero-tariff coverage to more than 95% within five years. Services trade reform, including a transition from “positive-list” to “negative-list” systems, should be accelerated.

Rule upgrades are equally important. Higher-standard rules in digital trade and climate governance should be introduced, while membership expansion should remain a priority. The accession of the Hong Kong Special Administrative Region could strengthen RCEP’s global influence and help ASEAN members address financing gaps.

Finally, the RCEP Support Unit should evolve into a formal secretariat, moving the bloc from soft coordination toward binding governance. The greater the uncertainty outside the region, the stronger the internal commitment to openness and cooperation must become.

[Abridged]