RCEP Agreement Set to Transform China-ASEAN Maritime Trade with Unprecedented Blue Economy Integration

• 9 February 2025
• Construction Focus
• 410 Views

The Regional Comprehensive Economic Partnership (RCEP) is poised to revolutionize maritime trade between China and ASEAN, with marine transport currently accounting for 94 percent of China’s foreign trade and over 60 percent of ASEAN’s foreign trade while representing 65 percent of bilateral trade between the two regions in 2023. This landmark development emerges as part of a broader initiative to promote sustainable maritime cooperation, reports Chi Fulin for China Daily on 9 January 2025.

The transformative potential of this maritime partnership gained momentum in March 2023 when the China Institute for Reform and Development, working alongside ASEAN-based think tanks, unveiled the “Initiative to Promote China-ASEAN Blue Economy Integration.” This strategic move aims to optimize marine resource allocation and foster stronger regional economic ties.

The disparity in marine economy contributions—7.9 percent to China’s GDP versus approximately 20 percent to ASEAN’s GDP—presents a compelling opportunity for complementary growth. This economic symbiosis is particularly significant given China’s technological prowess in ocean fisheries, infrastructure development, and renewable energy, while ASEAN member states possess valuable resources and cost advantages.

There are current challenges within ASEAN’s maritime infrastructure, with only three ports ranking among the world’s top 20. The partnership seeks to address critical issues,s including limited port accessibility, insufficient cooperation mechanisms, and suboptimal logistics service quality across ASEAN member states.

The urgency for enhanced maritime cooperation is underscored by pressing environmental concerns. The South China Sea, which supports the livelihoods of 625 million ASEAN residents, has witnessed an alarming 70-95 percent decline in fish stocks since the 1950s. This situation has catalyzed efforts to establish unified trade standards under the RCEP framework.

The initiative outlines several ambitious projects, including developing a comprehensive China-ASEAN port network featuring advanced information-sharing capabilities and standardized regulations. Plans also encompass the creation of a “customs cross-border cooperation platform” to streamline inspection and certification processes, alongside the strategic deployment of “smart ports” at key locations.

Hainan Province emerges as a crucial hub in this maritime partnership, strategically positioned at the intersection of China’s domestic market and Southeast Asian trade routes. The Hainan Free Trade Port’s zero-tariff policies will attract ASEAN investment in seafood processing facilities. At the same time, Yangpu Port is being developed as a vital transportation nexus between the two markets.

The collaboration extends beyond infrastructure to encompass marine tourism, with China opening its markets and supporting both domestic and ASEAN enterprises in developing South China Sea cruise routes. Additionally, the partnership focuses on advanced aquaculture initiatives, including developing ecological deep-water cage systems and intelligent farming operations.

The initiative also proposes establishing ASEAN-oriented “offshore warehouses” at Yangpu Port to reduce maritime logistics costs through coordinated warehouse and distribution systems. Furthermore, plans are underway to create a China-ASEAN marine expo, positioning the Hainan Free Trade Port as a cornerstone for trade and cultural exchange between the regions.

• Economy and Finance
• Policy and Strategy