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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/117610/ http://psasir.upm.edu.my/id/eprint/117610/1/117610.pdf |
| _version_ | 1848867295722471424 |
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| author | Zhang, Wenjie Abd Rahman, Muhammad Daaniyall Muhamad Senan, Mohamad Khair Afham |
| author_facet | Zhang, Wenjie Abd Rahman, Muhammad Daaniyall Muhamad Senan, Mohamad Khair Afham |
| author_sort | Zhang, Wenjie |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T14:34:14Z |
| format | Article |
| id | upm-117610 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:34:14Z |
| publishDate | 2024 |
| publisher | Sciendo |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1176102025-05-30T03:55:24Z http://psasir.upm.edu.my/id/eprint/117610/ The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare Zhang, Wenjie Abd Rahman, Muhammad Daaniyall Muhamad Senan, Mohamad Khair Afham 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. Sciendo 2024-09-30 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/117610/1/117610.pdf Zhang, Wenjie and Abd Rahman, Muhammad Daaniyall and Muhamad Senan, Mohamad Khair Afham (2024) The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare. Theoretical and Practical Research in Economic Fields, 15 (3). pp. 566-578. ISSN 2068-7710 https://journals.aserspublishing.eu/tpref/article/view/8588 10.14505/tpref.v15.3(31).05 |
| spellingShingle | Zhang, Wenjie Abd Rahman, Muhammad Daaniyall Muhamad Senan, Mohamad Khair Afham The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title | The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title_full | The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title_fullStr | The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title_full_unstemmed | The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title_short | The effects of the Regional Comprehensive Economic Partnership on China’s trade, tariff revenue and welfare |
| title_sort | effects of the regional comprehensive economic partnership on china’s trade, tariff revenue and welfare |
| url | http://psasir.upm.edu.my/id/eprint/117610/ http://psasir.upm.edu.my/id/eprint/117610/ http://psasir.upm.edu.my/id/eprint/117610/ http://psasir.upm.edu.my/id/eprint/117610/1/117610.pdf |