Recently, the entry into force and implementation of multiple free trade agreements have injected new impetus into China's foreign trade development and brought numerous benefits.
On January 1st, the Free Trade Agreement between the People's Republic of China and the Republic of Maldives officially came into effect. On the same day, Kunshan Customs issued the first certificate of origin under the China-Maldives Free Trade Agreement in Jiangsu Province for Colman Elevator (China) Co., Ltd. The goods are worth $27,000, and with this certificate, the company can enjoy a tariff preference of 7,880 yuan in the importing country. According to the tariff reduction arrangements under the agreement, both sides have committed that the number of tariff items and the trade volume of zero-tariff products will exceed 95%. China's main exports to Maldives include mechanical, electrical and instrumentation products, furniture, steel products, etc. After the implementation of the agreement, it will be more conducive to the export of China's competitive products to Maldives. In addition, agricultural products such as flowers and vegetables, which are exported to Maldives in large quantities, will also benefit. Maldives' advantageous aquatic products such as fish and textiles exported to China will also enjoy zero-tariff treatment. An enterprise in Yantai, Shandong Province, which exports electrical equipment to Maldives, said that with the support of the tariff reduction policy of the free trade agreement, it is expected that the annual export volume in 2025 can increase by about 20%.
Also on January 1st, the Free Trade Agreement between China and Nicaragua entered into force and implementation for one year. From January to November 2024, the total bilateral trade volume between China and Nicaragua reached $1.136 billion. China's exports to Nicaragua increased by 39.7%, and Nicaragua's exports to China increased even more significantly by 209%. In the future, the two countries will further cooperate in infrastructure construction, clean energy, network communication and other fields.
In addition, the Protocol between the Government of the People's Republic of China and the Government of the Republic of Singapore on Further Upgrading the Free Trade Agreement entered into force on December 31st, 2024. This upgrade has established a negative list management model, creating a broader market space, injecting greater openness and certainty, providing higher policy transparency, and expanding emerging mutually beneficial cooperation areas, bringing new growth points to the economic and trade cooperation between the two countries.
Moreover, the Regional Comprehensive Economic Partnership (RCEP), which has been in effect for three years, continues to release dividends. It has effectively activated regional cooperation vitality and achieved remarkable results in customs clearance simplification, tariff reduction, trade and investment facilitation, etc. The customs clearance policy within 6 hours has greatly benefited enterprises like Yunnan Yeshun Technology Co., Ltd. that export perishable products such as fresh flowers. Jiangsu Pilkington Yaopi Glass Co., Ltd. has also seen the import tariff of its goods exported to Japan directly reduced from 6.3% to 0 thanks to the RCEP certificate of origin.
The entry into force and implementation of free trade agreements have built a broader platform for trade exchanges between China and its contracting parties, reduced trade costs, improved trade efficiency, promoted economic development and win-win cooperation between both sides, and also sent a positive signal for the stable recovery of the global economy.
