The impact of the entry into force of RCEP on regional investment and trade mainly includes a sharp drop in the cost of intra-regional trade. After the entry into force of RCEP, more than 90% of the goods trade in this region will eventually achieve zero tariff. Among them, China and Japan will immediately implement zero tariffs on about 24.9% and 57% of tax items respectively. Meanwhile, the proportion of China's zero-tariff items to Australia, New Zealand and ASEAN countries will reach 64.7%, 65% and 66.8% respectively.
The impact of tariff changes is mainly in China and Japan. Since China has signed bilateral free trade agreements with ASEAN, South Korea, Australia and New Zealand, the marginal impact of RCEP is limited. Japan is the only country in the region that has not signed a free trade agreement with China, so the tariff concession arrangement between China and Japan is the biggest highlight of this RCEP, which will bring certain benefits to China's exports of motors, mechanical equipment and parts, chemicals and textiles.