In recent years, China has been actively pursuing free trade agreements with various countries around the globe. Free trade agreements (FTAs) are agreements between two or more countries that aim to reduce trade barriers, such as tariffs, quotas, and other restrictions, in order to increase trade and investment flow between the countries.
Some of the key benefits of FTAs for China include increased market access, improved competitiveness, and enhanced economic growth. In addition, FTAs can help to strengthen strategic partnerships, promote regional integration, and deepen economic cooperation between countries.
So, has China signed any free trade agreements recently? The short answer is yes. Here are some of the most significant FTAs that China has signed over the past few years:
1. Regional Comprehensive Economic Partnership (RCEP)
The RCEP is a free trade agreement between 15 Asia-Pacific countries, including China, Japan, South Korea, Australia, and New Zealand. The deal was signed in November 2020 and is the world`s largest free trade agreement, covering a population of around 2.2 billion people and 30% of global GDP. The RCEP is expected to boost trade and investment between the member countries, reduce tariffs, and help to create a more integrated and stable economic region.
2. China-Switzerland Free Trade Agreement
China and Switzerland signed a free trade agreement in July 2013, which came into effect in July 2014. The agreement covers trade in goods and services and provides for the removal of tariffs on 99.7% of Swiss exports to China and 84% of Chinese exports to Switzerland. The agreement has helped to boost bilateral trade and investment between the two countries.
3. China-Australia Free Trade Agreement
The China-Australia Free Trade Agreement (ChAFTA) was signed in June 2015 and entered into force in December of the same year. The agreement provides for the removal of tariffs on 95% of Australian exports to China and 100% of Chinese exports to Australia. ChAFTA has helped to strengthen economic ties between the two countries and has led to increased trade and investment flows.
4. China-ASEAN Free Trade Area
The China-ASEAN Free Trade Area (CAFTA) is a free trade agreement between China and the 10 member countries of the Association of Southeast Asian Nations (ASEAN). The agreement came into effect in 2010 and covers trade in goods, services, and investment. The agreement has led to increased trade and investment between China and ASEAN countries and has helped to promote regional economic integration.
In conclusion, China has signed several free trade agreements in recent years, which have helped to boost trade and investment flows, strengthen strategic partnerships, and promote regional integration. As China continues to play a major role in the global economy, it is likely that it will continue to pursue and sign more FTAs with other countries in the future.