China Trade Agreements List: Everything You Need to Know
China, being the world`s second-largest economy and a global hub for manufacturing, has long been a target for foreign governments seeking to tap into its vast market potential. With this in mind, China has signed numerous trade agreements with several countries worldwide aimed at boosting foreign trade and investment.
In this article, we provide you with a comprehensive China trade agreements list highlighting the major trade agreements signed by China with other countries, their objectives, and their effects on international trade.
1. China-Australia Free Trade Agreement (ChAFTA)
Signed in 2015, ChAFTA is a bilateral trade agreement between China and Australia. The agreement seeks to reduce tariffs and other trade barriers on goods and services exchanged between both countries, as well as promote investment and economic cooperation.
Under ChAFTA, over 85% of Australian exports to China are tariff-free, and this is expected to increase to 93% by 2020. Additionally, the agreement provides for deeper cooperation in education, tourism, and financial services, among others.
2. China-New Zealand Free Trade Agreement (FTA)
China and New Zealand signed the China-New Zealand FTA in 2008, making New Zealand the first developed country to sign a free trade agreement with China. The agreement aims to lift trade and investment between both countries, reducing tariffs and market access barriers.
Under the agreement, over 96% of New Zealand goods exported to China are tariff-free, while Chinese goods entering New Zealand enjoy tariff reductions of up to 20%. The agreement has significantly increased trade volumes between the two countries, with China being New Zealand`s largest trading partner.
3. China-South Korea Free Trade Agreement (CKFTA)
The CKFTA, signed in 2015, seeks to liberalize trade and investment flows between China and South Korea by reducing tariffs and opening up new markets in both countries.
Under the agreement, roughly 90% of South Korean goods exported to China are now duty-free, while Chinese goods entering South Korea enjoy tariff reductions of up to 50%. The agreement has boosted trade between the two countries, with China being South Korea`s largest trading partner.
4. China-ASEAN Free Trade Agreement (CAFTA)
The CAFTA is a free trade agreement signed between China and the ten-member Association of Southeast Asian Nations (ASEAN) in 2002. The agreement aims to reduce tariffs and other trade barriers on goods and services traded between China and ASEAN member countries.
Under the agreement, tariffs on over 90% of traded goods have been eliminated, boosting trade volumes between China and ASEAN. The agreement also facilitates investment flows between the two regions and has significantly deepened economic cooperation.
5. Regional Comprehensive Economic Partnership (RCEP)
The RCEP is a proposed free trade agreement between China and 14 other countries, including members of ASEAN, Japan, South Korea, Australia, and New Zealand. The agreement aims to create a regional trade bloc that covers over 30% of the global GDP.
The RCEP seeks to eliminate tariffs and other trade barriers on goods and services, increase investment flows, and promote economic cooperation among member countries. Negotiations are ongoing, and the agreement is expected to significantly increase trade volumes between China and other member countries.
Conclusion
China`s trade agreements list continues to expand, reflecting its growing influence as a global economic powerhouse. These agreements have been instrumental in boosting trade and investment flows between China and other countries, creating new market opportunities and driving economic growth.
As China continues to open up its economy to the world, foreign businesses looking to take advantage of its vast market potential should be aware of these trade agreements and leverage their provisions to maximize market access and minimize trade barriers.