Editor's note: Zhang Jianping is the director of the Chinese Academy of International Trade and Economic Cooperation. Du Jingjing is an intern researcher at the same institution. The article reflects the authors' opinion, and not necessarily the views of CGTN.
At the invitation of Prime Minister Lee Hsien Loong of Singapore, Chinese Premier Li Keqiang is on an official visit to Singapore from November 12 to 16, during which he will attend the 21st China-ASEAN (10+1) Leaders' Meeting and the 21st ASEAN-China, Japan and South Korea (10+3) Leaders' Meeting and the 13th East Asia Summit (EAS).
With a focus on East Asia, Premier Li Keqiang's series of meetings will promote the development and cooperation between China and East Asia countries, which are expected to jointly safeguard multilateralism, free trade and international rules, and promote regional economic integration, making important contributions to peace, development and stability in the region.
The premier's visit will further advance the negotiation process on the upgrade of the Free Trade Agreement (FTA). In January 2009, the milestone China-Singapore FTA came into force. It was the first comprehensive free trade agreement signed between China and ASEAN countries. Singapore was the first Asian country to sign such an agreement with China.
Chinese Premier Li Keqiang speaks in Singapore on September 13, 2018. /Reuters Photo.
According to the agreement, Singapore was expected to cancel all tariffs on imports from China on January 1, 2009, and China was required to levy zero tariffs on 97.1 percent of imported products from Singapore by January 1, 2010.
During Premier Li Keqiang's official visit to Singapore, the two sides will formally sign the Protocol on Upgrading China-Singapore Free Trade Agreement, which will be of great significance to the trade and investment relations between China and Singapore.
With highly developed services and high-tech industries, Singapore is one of Asia's most developed economy and one of the freest and most transparent economies in the world.
The upgraded China-Singapore FTA will open up more space for cooperation in the service industries, reduce trade and investment barriers, enhance the efficiency of economic and trade cooperation, especially in the financial industry and high-tech industries, and drive the economic development of both sides.
ASEAN leaders gather for a group photo during the opening ceremony of the 33rd ASEAN Summit in Singapore November 13, 2018. /VCG Photo
The successful upgrade of the FTA is not just about enhancing trade and investment cooperation between the two countries. More importantly, in the current international dynamics, the upgrade of the China-Singapore FTA can send a very positive message to the world that China and Singapore are working together to maintain their agreement. This can lay a good foundation for trade negotiations between China and other countries and regions.
In the short term, it will help China and Singapore to speed up the conclusion of the negotiation on the Regional Comprehensive Economic Partnership (RCEP).
Facing the uncertainties such as challenges of unilateralism to the global trade, concluding RCEP negotiations as early as possible will help strengthen and improve regional supply chains and value chains.
A Singaporean policeman walks up on an escalator at the Suntec City convention and exhibition center during the 33rd Association of Southeast Asian Nations (ASEAN) summit in Singapore on November 13, 2018. /VCG Photo.
It's also of great significance to maintaining regional trade liberalization and facilitation and supporting global free trade. Under the new situation characterized by a reversal of globalization and trade protectionism, both China and ASEAN have expressed their firm support for trade liberalization and facilitation.
Therefore, the process of promoting regional economic integration in East Asia through RCEP negotiations is a very positive approach to effectively addressing global uncertainties.
China and ASEAN are the two core markets of RCEP representing very strong market growth. If RCEP can be reached, China and ASEAN will become more integrated in terms of trade, investment, industry and finance.
The process will be marked by the “diamond decade” in China-ASEAN cooperation. The demonstration and driving effects of the upgrade of China-Singapore FTA have also laid a good foundation for achieving RCEP.
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