KUALA LUMPUR, Oct. 27 (Xinhua) -- China is playing a crucial role in advancing the Free Trade Area of the Asia-Pacific (FTAAP) through sustaining regional growth and strengthening economic integration, according to a Malaysian scholar.
With its vast domestic market, extensive industrial networks and commitment to opening up, China is well positioned to play a constructive role in turning the long-standing vision of the FTAAP into practical cooperation, Ong Chong Yi, executive director of BRI Caucus for Asia Pacific (BRICAP), told Xinhua in a recent interview.
"The FTAAP has been discussed within the Asia-Pacific Economic Cooperation (APEC) framework for two decades. Although progress toward a comprehensive agreement has remained limited, the institutional foundations for regional integration are now stronger than ever, " he said.
Ong noted that the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have established two major, partly overlapping frameworks for trade liberalization in the region and that the FTAAP's central challenge is to reconcile high standards with broad participation.
"A successful framework must offer meaningful market access while ensuring that economies with different regulatory capacities can implement their commitments effectively. It must also generate tangible benefits for businesses, particularly micro, small and medium-sized enterprises," he said.
"This is where China can make an important contribution. China can help promote greater coordination between existing regional trade agreements. China can strengthen confidence in regional cooperation through continued unilateral opening up and domestic reform," he said.
Ong added that China, especially through its ASEAN partners, can help identify regulatory differences, develop workable solutions and facilitate cooperation among a wider group of APEC members and provide support by contributing market opportunities, technical expertise and capacity-building resources, while encouraging inclusive participation and the development needs of different economies.
"China's leadership can be most effective when it works alongside ASEAN members, other major regional economies and the business community to develop practical and inclusive solutions," he added.
"Priority areas should include customs procedures, electronic trade documentation, rules of origin, digital trade and mutual recognition of technical standards ... Genuine trade facilitation therefore requires not only technological connectivity but also legal recognition of electronic signatures, documents and authentication mechanisms," he explained.
"Similarly, differences in product testing, certification and carbon-accounting standards can impose substantial costs on businesses, even when tariffs have been reduced. Addressing these practical barriers would help transform regional integration from a policy aspiration into measurable economic benefits," he added.
Ong cited the Hainan Free Trade Port as an important example of how domestic institutional innovation can contribute to wider regional cooperation, adding that it could serve as a testing ground for regulatory cooperation involving China and regional partners such as Malaysia and Singapore.
"By comparing clearance times, compliance costs and business participation before and after implementation, policymakers could identify effective solutions and consider extending them to other sectors and economies...It can help translate that vision into practical results by supporting regulatory coordination, expanding market opportunities and working with regional partners on measurable reforms," he said. ■