Regional Comprehensive Economic Partnership Research Articles

RCEP rules on cross-border data flows: Asian characteristics and implications for developing countries

ABSTRACT Data, as an essential production factor and a fundamental strategic resource in the digital economy era, have profoundly transformed production methods, lifestyles, and social governance, becoming one of the critical factors influencing the global competitive landscape. The United States and the European Union are actively making comprehensive arrangements around data flow issues, integrating their interests and values into data governance rules to influence other countries. Against the backdrop of increasingly intense global rule-making competition in digital trade, the Regional Comprehensive Economic Partnership (RCEP), led by the Association of Southeast Asian Nations (ASEAN) and actively promoted by China, covering 15 countries in the Asia-Pacific region, is sending a strong and powerful Asian voice regarding cross-border data flow rules. This article attempts to highlight the Asian characteristics of the data cross-border flow rules within RCEP through a horizontal comparison of regional trade agreements. These characteristics primarily include the principle of free cross-border data flow; fully protecting the host country’s national security through exceptional clauses; relatively lenient regulation of personal information protection; and adhering to the principle of non-reciprocity to respect and embrace countries at different development levels. Consequently, it is concluded that RCEP has constructed an Asian paradigm for cross-border flow of data that matches the development status of the Asia-Pacific countries and is worthy of emulation by other developing nations.

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

Транстихоокеанское партнерство и всестороннее региональное экономическое партнерство как международно-правовая модель экономической интеграции в Азиатско-Тихоокеанском регионе

The article explores international law aspects of the contemporary integration processes in the Asia-Pacific with a specific focus on such relatively new formationsas the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Based on the WTO law provisions with regard to the free trade areas for goods and services, both Partnerships significantly widen the scope of regulated inter-governmental relationships, which allows considering the TPP and the RCEP as a fundamentally new form of the regional trade agreements. Having a fixed number of participating states and a system of institution with their functions and competencies, the Partnerships do not represent inter-governmental organizations and are vested with no legal capacity or, especially, supranational powers. However, this does not undermine the trade and economic significance of the Partnerships while also making them an attractive model of the soft integration structure between the states having different level of economic development, located in different geographical regions and bound with their own integration obligations under bi- and multilateral (subregional) trade agreements. The founding agreements of the Partnerships are typical “WTO plus” arrangements combining the provisions on liberalization of trade in goods and services with the parties’ mutual obligations in the fields of investments, sustainable development, competition, administrative and legal cooperation. At the same time, applicability of parallel bi- and multilateral trade agreements between the Asia-Pacific states, including those within ASEAN, forms a complex multilayer regulation of foreign trade and entails a risk of legal uncertainty for economic operators.

The Transformation of International Relations in East Asia at the End of the XX – Early XXI Centuries

The author examines the role of various institutions and countries in the transformation of the world order in East Asia during the period of the late XX – early XXI centuries. The work notes that at the end of the XX century, the American model of the regionalization process, carried out within the framework of Asia-Pacific Economic Cooperation (APEC), dominated. However, due to the changes in the US foreign policy doctrine and the Asian economic crisis of 1997–1998, APEC, in the early 2000s, began to give way to ASEAN+, where Japan occupied the leading position. Since the mid-2000s, China has been strengthening due to successfully carried out economic reforms and the use of various integration platforms. As a result, China began to promote its own model of globalization and regionalization in the region, which challenged the American order not only in East Asia, but also in the Asia-Pacific region. In the late 2000s, Washington sought to regain lost positions in the region by promoting the Trans-Pacific Partnership integration project, which intensified the struggle between the leading powers for dominance in the region. As a result, in the 2010s. ASEAN+ and Japan are developing the Regional Comprehensive Economic Partnership (RCEP) project, China is beginning to promote the Belt and Road international cooperation organization. As a result of the transformation of international relations caused by the movement of the world from unipolar to multipolar, there is a change in the transformation of the geopolitical situation in East Asia. The United States returned to the «traditional» methods of confrontation, increasing tension in the region and the world

Trade‐offs and synergies: Examining the impact of natural resource rents and energy efficiency on financial development in the RCEP context

AbstractThis study investigates the complex interplay between financial and economic development within the Regional Comprehensive Economic Partnership (RCEP) countries—Australia, China, Indonesia, Japan, and South Korea—from 2000 to 2022, with a focus on the impacts of natural resource rents and energy efficiency. Employing moment quantile regression to address non‐normal data distribution identified by the Jarque–Bera (JB) test, we unveil diverse slopes and cross‐sectional interdependencies, necessitating a nuanced examination. Panel unit root tests confirm non‐stationarity, enabling a thorough investigation. Our findings reveal a long‐term cointegration relationship between natural resource rents, energy efficiency, economic development, and foreign direct investment (FDI), providing a holistic understanding of their dynamics. Notably, our analysis exposes the trade‐off between natural resource abundance and financial growth, as evidenced by negative coefficients for natural resource rents, while positive coefficients for economic growth, energy efficiency, and FDI counterbalance this effect, fostering a conducive financial environment. Additionally, our examination of location and scale characteristics unveils vulnerabilities associated with natural resources alongside stability indicators linked to economic growth, energy efficiency, and FDI. By employing quantile regression, our study sheds light on the nuanced impacts of natural resources, offering valuable insights for policymakers and researchers in navigating sustainable financial development within the RCEP framework.

Analysis of Regional Economic Cooperation in Asia and Policy Options for China

Recent years have witnessed a robust growth momentum in regional economic cooperation in Asia, marking it as an indispensable component of global economic development. With the acceleration of globalization and the deepening of regional integration, cooperation among Asian nations in areas such as trade, investment, and infrastructure has progressively intensified. Particularly under China's impetus, the signing of free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) signifies a new phase in Asia's regional economic cooperation. As the world's second-largest economy, China, with its vast market and vigorous economic growth, plays an increasingly pivotal role in regional economic collaboration. China's policy choices not only influence the sustainable development of its own economy but also have a profound impact on the entire economic landscape of Asia. Therefore, a thorough investigation of the current state, mechanisms, and characteristics of regional economic cooperation in Asia, along with an analysis of China's policy choices in this process, holds significant theoretical and practical importance.

The Effects of the Regional Comprehensive Economic Partnership on China’s Trade, Tariff Revenue and Welfare

Increasing attention is being paid to the role of regional economic integration in facilitating a country's trade. This is especially true for the state like China, which has the second largest GDP in the world. This study explores the effects of the Regional Comprehensive Economic Partnership (RCEP) on China, looking at changes in welfare, trade creation, trade diversion, and tariff revenue under four tariff reduction scenarios with RCEP members. The study evaluates how RCEP affects China's trade relations with Japan, Korea, ASEAN, Australia, and New Zealand by using the World Bank's World Integrated Trade Solution Software for Market Analysis and Restrictions on Trade (WITS-SMART) tool. The findings demonstrate increased market accessibility and competitiveness of commodities in the Chinese market, with notable increases in trade creation and diversion, especially with Korea and Japan. RCEP considerably increases welfare even though it results in lower tariff revenues, indicating that the advantages of lower trade costs and more effective supply chains exceed the fiscal drawbacks. The paper concludes with policy recommendations that emphasize the need for strategic adaptations in China’s trade policies to fully capitalize on the economic opportunities presented by RCEP, ensuring sustainable growth and the equitable distribution of trade benefits among all member states.

Role of green finance and higher education in fostering the sustainability and energy transition practices

This paper offers a qualitative analysis of how higher education and green finance impact the promotion of sustainable energy within the Regional Comprehensive Economic Partnership (RCEP) region from 2000 to 2020. The analysis reveals that higher education has a positive effect on sustainable energy development, with a 1% increase in the higher education population associated with a 0.19% rise in short-term and a 0.29% rise in long-term sustainable energy progress. Green finance also plays a crucial role, significantly accelerating green energy development in the RCEP region—each 1% increase in green finance results in a 0.43% boost in short-term and a 0.38% boost in long-term sustainable energy advancement. In contrast, increased fossil fuel production hampers sustainable energy development. Enhanced internet access further supports green energy progress, contributing to a 0.43% increase in the short-term and a 0.53% increase in the long-term. Policy recommendations include expanding the green finance market, advancing sustainable education initiatives, reducing reliance on fossil fuels, and improving internet access to further sustainable energy development in the RCEP region.

Digitalization of the economy and sustainability of metallic mineral production

Due to the adverse impacts of climate change on the environment and biodiversity, sustainability has become a critical issue. This paper investigates the impact of digitalization on the sustainability of metallic mineral production, particularly CO2 emissions, within the Regional Comprehensive Economic Partnership (RCEP). Using data from 1998 to 2020 and the cross-sectional FMOLS technique, the study finds that a 1% increase in ICT investment reduces CO2 emissions by 0.32%, and a 1% rise in Internet access decreases emissions by 0.28%. However, electrification increases emissions due to higher energy demand and fossil fuel reliance. Economic growth and metallic resource trade volume also elevate emissions. Policy recommendations include smart urban development, sustainable rural electrification, fostering internet access, and implementing green logistics in metallic production trade to enhance sustainability in RCEP countries.

Analyzing the impact of the EVFTA on the importation of transportation vehicles, parts, and components into Vietnam from the EU: A SMART model approach

This study examines the impact of the EU-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s imports of transportation vehicles, parts, and components from the EU. Using the SMART model and data from UN COMTRADE and Vietnamese government agencies, the analysis shows modest increases in import values. Growth rates are 0.23% with the EVFTA alone and 0.21% when the Regional Comprehensive Economic Partnership (RCEP) is also considered. These findings reveal different effects among EU member states and product categories, especially in HS group 87 (vehicles) and HS group 89 (ships and boats), where trade creation is notable for Germany, Slovakia, and Italy. However, the study also finds significant trade diversion, with $361.91 million shifting from other regions to the EU. Despite these modest gains, the EVFTA positively impacts Vietnam’s industrial growth and green energy transition by enabling the import of advanced EU products. The research emphasizes the importance of considering how agreements like the RCEP influence the broader economic effects of the EVFTA, as some benefits shift to RCEP countries like Japan, South Korea, and China.

Approaches to the Investor-State Dispute Settlement Mechanism Under the Regional Comprehensive Economic Partnership

Approaches to the Investor-State Dispute Settlement Mechanism Under the Regional Comprehensive Economic Partnership

Navigating intellectual property challenges in China: Insights from RCEP and domestic factors

AbstractIn a high‐quality economic era, China needs innovative development. Intellectual property (IP) innovation and development are the first driving forces in China. At the same time, China has signed the Regional Comprehensive Economic Partnership agreement (RCEP), which has had a significant impact on the development of China's IP law. Under the combination of these two factors, China's IP innovation and development environment are worth studying. This paper uses the “factor analysis method” from five dimensions, including initiatives for civic awareness, regional IP development foundation, legislative support, law enforcement measures, and judicial protection, to study the development environment of IP innovation in 31 provincial regions in China, in the past 3 years. It is found that IP development in various regions of China is insufficient in some way, and the scores of different provinces vary greatly, so it will inevitably affect the development of China's IP integrally and then affect the construction process of strong provinces and cities with intellectual property rights (IPR). The novelty of this research is its in‐depth investigation into how the RCEP and global partnerships are influencing the transformation of China's intellectual property landscape. This transformation requires legal adjustments and underscores the importance of specialized IP judge training, alignment with international norms, and regional IP progress to realize China's ambition of becoming a dominant force in intellectual property. Combined with the fact that RCEP has come into effect in China and has had a significant impact, it is necessary to develop China's IP undertaking from legislative, judicial, law enforcement, and international cooperation aspects.

Analysis of Economic Freedom, Foreign Direct Investment, and Economic Growth

This research analyzes the relationship between economic freedom, foreign direct investment (FDI), and economic growth using the Vector Error Correction (VECM) model and the Granger causality test. Panel data from several free trade agreement countries in the Regional Comprehensive Economic Partnership (RPEC) for 1997 – 2022. VECM captures cointegration relationships and models short-term adjustments toward long-term balance. Meanwhile, the Granger causality test helps identify the direction of the causal relationship between economic freedom, FDI, and economic growth. Empirical results show a long-term but weak cointegration relationship between these variables in the short term. In addition, it was found that there is a two-way causality between economic freedom and economic growth, as well as between FDI and economic growth. These findings imply that policies encouraging economic freedom and attracting foreign investment can increase a country's economic growth. This research provides empirical insights into the important role of economic freedom and FDI in driving economic growth and related policy implications for creating an environment conducive to investment and sustainable economic growth.

Impact of the US Indo-Pacific Strategy on China-India Economic Cooperation

India has grown to be a significant component of the US Indo-Pacific strategic layout in South Asia because of its unique geographic location, political and economic power, and other factors. Through collaborative efforts within the Indo-Pacific Economic Framework (IPEF), the US and India have fostered project cooperation by aligning policy dispositions to address shared interests and contain China. Analysis of the economic and trade interactions between China and India suggests a declining trend in their cooperation from many perspective. In a strategic move, India opted out of the China-led Regional Comprehensive Economic Partnership Agreement in 2019 to prioritize economic and trade relations in accordance with its strategic objectives. In addition, India got supports and advancements in high-tech industries through the US Indo-Pacific strategy, consequently reducing collaboration with China in this sector. Furthermore, the US and India have taken measures to diversify supply chains and explore alternative trade routes, steering away from China and promoting regional industrial transfers. This shift has prompted India to intensify its focus on developing high-tech industries to lessen its dependence on China's industrial chain supply. These initiatives have also contributed to the formation of an internal trade network within the IPEF, disrupting traditional trade exchanges between China and India. However, the economic cooperation between the US and India falls short of reaching its full potential because of differences in national interests, history, culture, and other factors. Consequently, the impact of China-India economic relations is not catastrophic, even in the face of heightened US trade restrictions on China that have compelled India to make strategic decisions.

Empirical analysis of trade costs and their impact on carbon emissions in RCEP countries

Global economic integration and environmental issues have attracted widespread attention in recent years. As one of the world's most significant free trade agreements, the Regional Comprehensive Economic Partnership (RCEP) significantly impacts trade and the environment. However, research on the relationship between trade costs and carbon emissions still needs to be completed. This study explores the relationship between trade costs and carbon emissions within the framework of the Trade Benefit Theory, which posits that trade liberalization and openness generate economic benefits through increased efficiency, technological advancement, and economic growth. This study analyzes panel data from 12 RCEP countries from 2001 to 2014, employing static and dynamic panel models to examine the relationship between trade costs and carbon emissions. The analysis utilizes mixed regression, fixed (random) effects models, and the systematic GMM method. The results indicate that decreases in trade costs are associated with reduced environmental pollution, aligning with the Environmental Kuznets Curve (EKC) hypothesis, which posits an N-shaped relationship between trade costs and carbon emissions. Implementing RCEP facilitates a decrease in trade-related pollution, suggesting that reducing trade costs can help mitigate environmental pollution. Furthermore, the observed N-shaped EKC for trade costs and carbon emissions highlights the potential of RCEP to reduce the impact of trade-related pollution.

RCEP: IMPLICATIONS AND CHALLENGES FOR THE EUROPEAN UNION IN A CHANGING GLOBAL ECONOMY

The Regional Comprehensive Economic Partnership (RCEP), emanating from the core principles of the Association of South East Asian Nations (ASEAN), represents a significant evolution in regional economic cooperation. This article delves into the intricate dynamics of RCEP, emphasizing its inception, growth, and the profound implications it holds for the European Union (EU). Tracing the history of ASEAN and its expansion, the paper examines how the ASEAN's Free Trade Agreements (FTAs) with nations outside Southeast Asia, including China, South Korea, New Zealand, Australia, and India, laid the groundwork for RCEP. The study highlights the strategic objectives of RCEP in fostering trade liberalization and economic integration among its member states, while also addressing disputes and promoting regional stability. The signing of RCEP in November 2020 marked a pivotal moment in Asia-Pacific economic relations, promising significant shifts in global trade dynamics. This research critically analyses the potential impact of RCEP on the EU, particularly in terms of trade, foreign direct investment (FDI) inflows, and the broader implications for the global multilateral trading system. The paper also explores how RCEP could reshape the EU's role and strategies in regional and global economic contexts, assessing the challenges and opportunities it presents for EU-ASEAN collaborations. The evolving relationship between Southeast Asia and the EU under the shadow of RCEP, including the promotion of regional trade at micro and macro levels, forms a critical part of this analysis. The study aims to provide comprehensive insights into the multifaceted effects of RCEP on the EU, offering valuable perspectives for policymakers and stakeholders in both regions.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP AND THE EUROPEAN UNION: OPPORTUNITIES AND CHALLENGES

The Regional Comprehensive Economic Partnership (RCEP) is a historic trade deal that has had a huge impact on drastically reshaping the economic landscape of the entire world. Formally established in November 2020, it represents a monumental achievement in regional cooperation and integration. The European Union (EU) has been a pioneering force in forging global trade agreements that have far-reaching implications for the world economy. As one of the largest trading blocs, the EU plays a pivotal role in shaping international trade policies and fostering economic integration. This study investigates the crucial role that the European Union plays in global trade agreements, concentrating on their influence on the evolution of sustainable business practices, diplomatic ties, and economic growth and prosperity. The present study is a descriptive study on the implications of RCEP for the European Union, the challenges it poses and the available opportunities.

Regional Comprehensive Economic Partnership Can Boost Value-Added Trade in Food and Non-Food Sectors in Asia-Pacific Economies.

This study examines the effects of the Regional Comprehensive Economic Partnership (RCEP) on the value-added trade of food and non-food sectors. This study uses a global computable general equilibrium (CGE) model coupled with an extension module for the origin decomposition of value-added flows embodied in gross trade. The results suggest that by cutting down tariff and non-tariff barriers, the RCEP would significantly stimulate the economies of and gross trade among Asia-Pacific countries involved in the agreement. The potential benefits of the RCEP will be overestimated if we ignore the origin of value added and measure the benefits by gross exports. The domestic components of bilateral value-added flows between RCEP members would increase greatly, indicating an increasingly integrated value chain between RCEP members. Import taxes and non-tariff barriers for processed food, textiles and clothes, and heavy manufacturing are relatively significant in the region, so the RCEP would significantly improve their value-added exports. The domestic component of value-added exports in agricultural products and processed food from RCEP members would be increased significantly, indicating that the closely integrated food value chain boosts the food economies of RCEP members.

Changes in the Trade Pattern in China Under the RCEP: An Analysis of Trade Creation and Diversion Using the SMART-WITS Model

The Regional Comprehensive Economic Partnership (RCEP), one of the globe's most expansive free trade agreements (FTAs), has profoundly influenced its member countries' trading patterns. This fact is especially critical for a major economic powerhouse such as China. Understanding its trade creation and trade diversion within the RCEP context can facilitate successful formulation strategies and result in effective economic policies. In this study, we utilize the World Integrated Trade Solution Software for Market Analysis and Restrictions on Trade (WITS-SMART), a partial equilibrium modeling tool, on both state-level and industrial-tier tariff reductions under two distinct scenarios. Our findings confirm that China will benefit from impactful trade results across all RCEP members. Looking from industry point of view: machinery, chemicals, metals sector together with plastics and rubber production are projected to enjoy maximum rewards through increased trade creation and diversion opportunities from Japan and Korea. On the contrary, Australia and ASEAN have the greatest influence on the animal and vegetable sector. This crucial understanding creates strategic indicators that aid in evaluating the most appropriate alignments to harness the untapped potential in the RECP domain.

Comparative Analysis of Shandong Free Trade Zone and Liaoning Free Trade Zone

Free trade zone is a trade-oriented reform based on its functions and positioning by regional characteristics. To build free trade zones, China began to promote the reform of free trade zones, and since then various free trade zones have been established in succession. This paper is based on the effectiveness of the Liaoning Provincial Free Trade Zone and Shandong Provincial Free Trade Zone, from the three aspects of the Regional Comprehensive Economic Partnership’s national trade initiatives, cross-border funds facilitation of financial policies, and the East and West Avenue Golden Hub. According to analyzing and comparing the policy initiatives and the case effectiveness of the free trade zones in the two provinces which have similar target positioning and concerning the problems in the above three aspects, it is important to give three suggestions as follows. First, put forward a proposal to solve the problem of foreign investment enterprise. Second, expanding the trade scope of the Belt and Road. Third, opening up cross-border funds. And last, there are also some corresponding prospects about the above three problems.