RCEP deepens cooperation between Guangxi, ASEAN

An employee works on the production line of Guangxi Jingui Pulp & Paper Co Ltd in Qinzhou, Guangxi Zhuang autonomous region, in January. WANG WEICHEN/CHINA NEWS SERVICE

At a leading paper factory in South China's Guangxi Zhuang autonomous region, a production line runs at full steam as orders from ASEAN member states surge this year.

"Nearly 90 containers filled with white cardboard produced by the factory are shipped through Qinzhou Port every day to ASEAN markets, and the number keeps increasing," said Zhou Ju, logistics department director of Guangxi Jingui Pulp & Paper Co Ltd, owned by Indonesia's Asia Pulp & Paper Sinar Mas.

Since the Regional Comprehensive Economic Partnership (RCEP) agreement entered into force in January, trade costs have been further reduced among member countries, and related companies have seen tangible benefits.

Customs data showed that, in the first half, China's trade with ASEAN member states reached 2.95 trillion yuan ($435.93 billion), a year-on-year increase of 10.6 percent.

Zhou said raw materials like wood chips, wood pulp and starch imported from ASEAN member states now enjoy preferential tariffs thanks to the RCEP agreement, and this has greatly saved costs for the company.

The Indonesian company also established a branch in January in Nanning, capital of Guangxi, to manage the forestry affairs of the group in China, Laos and Cambodia. It also seeks to expand industrial chains as the company eyes the giant economic cooperation potential among China and ASEAN member states.

Companies believe that the implementation of the RCEP agreement enables ASEAN and Chinese enterprises to conduct business in a more transparent and clear environment, simplify Customs clearance procedures, and facilitate trade and economic exchanges.

"The implementation of the RCEP agreement has brought real benefits to our company and our partner companies in Malaysia," said Li Huihuan, deputy general manager of Sing Nest International Trading Co Ltd, a Singaporean-funded health food production and processing enterprise in the China (Guangxi) Free Trade Zone. The company has been importing raw materials like edible birds' nests from Malaysia.

Li added that thanks to the simplified Customs clearance brought by the agreement, production and operation efficiency of the enterprise have greatly improved. "The time from ordering raw materials in Malaysia to receiving goods has been shortened from 15 to five days, which has greatly reduced our warehousing costs," Li said.

For Chinese companies in Guangxi, RCEP also boosted their confidence to deepen cooperation with ASEAN member states. Liugong Machinery Co Ltd transported a large number of loaders to Thailand in January, and signed a joint venture agreement with Thai distributor Yontrakarn in February.

Zeng Guang'an, chairman and CEO of the company, said the two sides have been cooperating for 11 years, and they wish to serve Thai clients better with the JV.

Connected with ASEAN member states by land and sea, Guangxi has become an important window for exchange and cooperation between China and RCEP members. A total of 12 air cargo routes have been opened from Guangxi, covering almost all the major ASEAN member states.