RCEP – multilateralism in the face of protectionism

Editor's note: Keith Lamb, a special commentator on current affairs for CGTN, is a University of Oxford graduate with a Master of Science in Contemporary Chinese Studies. His primary research interests are China's international relations and "socialism with Chinese characteristics." The article reflects the author's opinions and not necessarily the views of CGTN.

In the face of hegemonic protectionism, the Regional Comprehensive Economic Partnership (RCEP), which came into effect in 2022, aims to eliminate tariffs on over 90 percent of goods traded among RCEP states, establishes common rules for trade, intellectual property and e-commerce, and strengthens confidence in an open rule-based multilateral trading order.

As the global economic center shifts Eastward, protectionist hegemonies and their political blocs, seeking to divide regions and drum up "global class divisions" by pitting developed nations against developing ones, stand in opposition to the democratic tide of the global community, as highlighted by RCEP.

RCEP, the world's largest free trade agreement (FTA), accounts for 30 percent of the world's population, GDP and trade volume. The establishment and success of the agreement show that protectionism and the division of common interests are failing. This is exemplified by the participation of RCEP members, including the of ASEAN nations, Japan, China, South Korea, Australia and New Zealand.

Some in the West see RCEP as a "wake-up call" for the U.S. and Europe to act against China, which will now be in a bigger FTA than the EU and the U.S. However, the inclusion of economically powerful Western allies, alongside ASEAN's collective influence, proves that RCEP is not China forcibly "knocking down walls" but rather a multilateral, democratic collaboration aligned with the times. Indeed, RCEP has been characterized as ASEAN-led and actively promoted by China.

Global demand for trade with China remains strong because it has proved itself to be fair and reliable in organizations like the WTO where it fulfilled its commitments, expanded market access, and followed WTO rulings to a far greater extent than many others – the RCEP is no different.

The U.S. has tried to isolate China from regional economic networks, but this simply ignores the economic realities on the ground: China's economic benefits cannot be ignored. Computer simulations show that RCEP will help offset global losses from any U.S.-China trade war, which will drag the world down with it. As such, the West must adjust, conform with the trend of the times, and recognize that China offers win-win benefits, which are being taken up by RCEP members.

U.S. security partners are increasingly disillusioned with hegemony. The Philippines, along with Quad members like Australia and Japan, demonstrate this disillusionment through their participation in RCEP. Even the Quad member India, which has thus far remained out of RCEP, is beginning to recognize its mistake. An Indian government think-tank now pushes for India's RCEP membership!

By resisting sanctions and protectionism, RCEP fosters stability in the multilateral trading system, supports economic recovery after the pandemic and creates mutual benefits. For example, due to preferential tariffs under RCEP, Cambodia's trade with other pact members has surged – exporting products worth $7.21 billion to RCEP members in the first 11 months of 2023, up 27 percent from the same period of 2022. In 2023, intra-regional trade in the RCEP region reached $5.6 trillion with $1.77 trillion being China's trade with other RCEP members.

Opening up leads to integrated efficient regional industrial supply chains, which in turn facilitates high-quality development. Much of what was previously "made in China" is now produced across East Asia. Consequently, other countries in the region can learn the best production processes, follow China's success, raise themselves up the technological ladder and eventually produce high-tech world-renowned products. Meanwhile, resource-rich nations gain improved market access for their goods due to tariff reductions.

Importantly, countries that previously advanced technologically did so by being incorporated into U.S. high-tech production chains serving hegemonic ambitions. However, this "privilege" is vulnerable to withdrawal at the whims of hegemonic interests.

China is different – stability in the world, peace on its borders and shared prosperity serve to strength it for all. This is exactly why it is serious about RCEP implementation, which also fosters collective planned development.

RCEP offers an alternative to hegemonic selection. Countries with less advanced technology can learn from China's progress, and unlike the U.S., China, with its win-win ideology, does not artificially constrain anyone. It also does not prevent members from trading with others – sovereignty is key. Development for all is desired by China and the RCEP, not a world of "haves" and "have-nots."

As the hegemonic order looks on, the RCEP region will become a model they must emulate. They will, in turn, be compelled to invest more in this region and "join the game" on fair terms, rather than control it or tip the board over.

The old Western-inspired order, which constantly decries China as a danger to their systems and their livelihood, will inevitably be forced to reevaluate their attitudes. Reality will expose media lies as they recognize China is not a threat but a partner, one that its neighbors willingly collaborate with, one that upholds multilateral principles once championed by the West.

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