HEADLINES: This week we focus on the Regional Comprehensive Economic Partnership (RCEP) free trade agreement which China has just ratified and says it expects to come into operation from 1st January 2022 - just five months away. The RCEP free trade agreement includes China, Japan, South Korea, the ASEAN nations of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam together with Australia and New Zealand.
For global businesses and investors, the RCEP’s sheer size makes it significant. Participating economies account for 29% of global GDP and about 30% of the world’s population. This equates to a market value of close to $25 trillion and a total consumer base of about 2.5 billion, of whom an estimated 1 billion are to middle class consumer standards. We provide specific updates on how companies from the United States, European Union and United Kingdom can leverage their existing FTA and DTA to access this important trade bloc.
China has been in the news this week with new regulations concerning data security and education, we look at how foreign investors are impacted and the compliance aspect to these new rules. We also examine India's Special Economic Zones and the trade and tax incentives they provide for foreign investors and provide an A-Z Guide to establishing a manufacturing operation in Vietnam. Finally, we discuss how China's Belt & Road Initiative is developing from an infrastructure build into a cash flow generator.
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