The Regional Comprehensive Economic Partnership (RCEP) agreement was signed among its 15 participating countries, launching the world's biggest free trade bloc. Participating countries include the 10 member countries of the Association of Southeast Asian Nations and China, Japan, South Korea, Australia and New Zealand.
What will RCEP do?
Under RCEP, any products from any member nation would be treated equally, which might give companies in RCEP countries an incentive to look within the trade region for suppliers.
What benefits will RCEP bring for Chinese graphite sector?
For China, it will be more convenient to export graphite products to overseas. In the future, the market in RCEP countries will be similar with the single market in Europe. Labor force, service and product could flow freely in this region. As a result, RCEP will boom the Chinese graphite market. For an instance, due to the signing of the RCEP, demand of graphite electrodes in East Asia will arise sharply. Because those members such Japan, South Korea and Malaysia continuously have large demands in graphite electrodes. Steel makers in those member countries would be China’s great users in the coming future.
What is the graphite electrode?
Graphite electrode (GE) is an essential component of steel production through the electric arc furnace (EAF) method. It consists of needle coke, petroleum coke and coal tar pitch. Those raw materials after calcining, forming, baking, impregnating and graphitizing finally become the finished product, graphite electrode.
According to the data of China Customs, graphite electrode’s total exports is 3548,000 tons in 2019, totally 345 million dollars. According to the graphite electrode’s imports, the top 5 country are: Malaysia, Russia, Turkey, Korea and Germany.
Effects to People in RCEP Region
After the signing of the RCEP, the price of imports will cheaper than before. For tourists, it’s will be more convenient to traveling abroad. The charge of visa will decrease. And tourists could purchase cheap and high-quality goods in RECP members.
Effects to Trading Companies in RCEP Region
After the signing of the RCEP, regional rules will be more unified and standardized, which can greatly reduce operational risks and uncertainties for trading companies. The core of international trade is the integration of market resources. For cross-border e-commerce companies, regional rules can help them to optimize the supply chain and integrate resources, establish overseas warehouses and open Southeast Asian markets. As the members of RCEP, trading companies in those countries have more accesses to create brand effects, making huge value.
Now, trading is no longer a simple goods trading. Service trading, data trading and technology trading will be a trend in the future. The signing of RCEP also will bring a large number of opportunities to technology-exporting companies, such in logistics system, payment system, warehousing system, cross-border e-commerce platform and financial platform.