China and Japan form bilateral free trade relation for first time
2022-01-04 15:09:17 【Print】
On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) agreement, the world's largest free trade agreement, entered into force and ten countries including China began to implement obligations of the RCEP agreement. With the RCEP agreement going into effect, a historical breakthrough is achieved in China-Japan trade relation as they form a bilateral free trade relation for the first time and make bilateral tariff reduction arrangements.
Before the RCEP agreement enters into force, an auto wire harness production company in Huizhou, Guangdong needed to import large quantities of plastic parts and relays from Japan every year at a customs tariff rate of 10%. With the RCEP agreement goes into effect, the company can save RMB700,000 (USD109,863) tariff payment per year, and in 15 years tariff rate on the related commodities will decrease to 0.
Of the RCEP members, Japan is China's largest import origin country on auto parts exporter with import value in 2020 over USD9 billion.
Before the RCEP agreement enters into force, an auto wire harness production company in Huizhou, Guangdong needed to import large quantities of plastic parts and relays from Japan every year at a customs tariff rate of 10%. With the RCEP agreement goes into effect, the company can save RMB700,000 (USD109,863) tariff payment per year, and in 15 years tariff rate on the related commodities will decrease to 0.
Of the RCEP members, Japan is China's largest import origin country on auto parts exporter with import value in 2020 over USD9 billion.
