Modelling the Impact of RCEP Agreement on the Economic and Trade Environment of Beijing

Yuanqing Liu,Yuan Tian,Xiongying Chen,Daqing Gong

doi:10.1155/2022/9237940

Yuanqing Liu, Yuan Tian + Show 2 more

Open Access

https://doi.org/10.1155/2022/9237940

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Abstract

As a national economic, political, and cultural center that ranks first in terms of openness to the outside world, the signing of the RCEP agreement has undoubtedly brought a series of opportunities and challenges to Beijing. Based on the analysis of the two main features embodied in the RCEP agreement, this paper precisely analyzes the areas where the RCEP agreement has a key impact on Beijing’s economy and trade and points out the opportunities and challenges brought by the RCEP agreement to Beijing’s economic and trade development.

Highlights

RCEP will force the transformation and upgrading of relevant domestic industries through the competitive effect brought by the big market and promote the high-quality development of the domestic economy
Under the framework of RCEP, there will definitely be a substantial promotion of the FTA between China, Japan, and Korea, and the FTA between China and ASEAN, which undoubtedly puts forward higher requirements for the transformation of Beijing’s service industry. erefore, the trade transfer effect brought by RCEP regional economic integration is conducive to the vigorous development of the service industry in Beijing and further promotes the upgrading of Beijing’s service industry
Less than 40% of the total social R&D expenditure in Beijing is invested by enterprises, far below the level of more than 60% in developed countries, and below the level of 60% in Shanghai and more than 90% in Shenzhen; the intensity of enterprise R&D investment is less than 1%, far below the average level of 4% in countries with stronger innovation capacity [3]. e signing of RCEP has a positive effect on the Beijing Free Trade Zone, and brings great potential to all 21 free trade zones in China

Summary

Introduction

RCEP is a free trade agreement based on a mature Asian production network and close intraregional trade, so the focus should be on the economic and trade relations and industrial structure between Beijing and RCEP member countries. RCEP will force the transformation and upgrading of relevant domestic industries through the competitive effect brought by the big market and promote the high-quality development of the domestic economy. By placing domestic enterprises in a more challenging competitive environment, RCEP forces domestic industries to get rid of huge labor supply and resource advantages and replace them with the development of high-quality output [2]. E difference in industrial structure and the gap in industrial competitiveness can enable Beijing and the regional industrial development of RCEP member countries to form an overall development strategy with complementary advantages, staggered development, and mutual promotion. From the perspective of BeijingTianjin-Hebei synergistic development, the deep complementarity between Beijing and RCEP member regions is conductive to the Beijing-Tianjin-Hebei FTA cluster to carry out differentiated exploration and increase the opening-up efforts, play a leading role in the development of Beijing, Tianjin, and Hebei with their own characteristics, and strengthen the synergistic linkage of national industrial clusters and urban industrial clusters

Main Impacts of RCEP Agreement on Beijing’s Economic and Trade Environment

Research Methodolgy

Results and Discussion

Conclusions and Recommendations