For the past three decades, the Asia-Pacific region has been a beacon of economic growth and stability, thanks to policies rooted in openness, collaboration, and shared prosperity. Economic integration under the Asia-Pacific Economic Cooperation (APEC) framework has driven impressive results, reducing average tariffs from 17% to 5% and making the region a primary contributor to global economic growth. Today, however, certain voices advocating for de-globalization, protectionism, and “decoupling” threaten to steer the region—and the world—toward a dead end.
APEC’s open regionalism model has been fundamental in creating a robust framework for trade and investment liberalization, setting a model of economic integration based on flexibility, pragmatism, and mutual benefit.
The statistics bear this out. From 1989 to 2022, total trade in goods and services within APEC surged from $3.1 trillion to $30 trillion, growing at an annual rate of 7.4%—outpacing global trade growth by a substantial margin.
By mid-2022, APEC members had signed a remarkable 207 free trade agreements, with 196 of them already in force. This comprehensive network has strengthened cross-border ties, generating a level of economic interdependence that has brought both wealth and resilience. In 2023, APEC’s 21 economies collectively accounted for over 60% of the world’s GDP, with a combined GDP growth rate of 3.5%. Looking ahead, the Asia-Pacific region is projected to grow by 4.2% in 2024, a rate significantly above the global average of 2.9%, further underscoring its importance as a growth engine.
Yet, against this backdrop of regional cooperation, some countries have been expanding the concept of national security to justify economic protectionism, “decoupling,” and closed-off economic systems. Such moves threaten to disrupt global supply chains, diminish market openness, and impede an already fragile global recovery.
The economic risks of fragmentation are significant and are underscored by recent findings from the International Monetary Fund (IMF). According to IMF estimates, rising global trade barriers and economic fragmentation could result in a potential long-term reduction of global GDP by up to 7%, with the impact on Asia-Pacific economies expected to be among the most severe due to their deep integration into global supply chains. Such losses translate to billions in lost economic potential, reduced competitiveness, and diminished resilience against economic shocks. This stark warning highlights the dangers of reversing course on trade openness and cooperation.
Ultimately, the Asia-Pacific’s prosperity depends on our collective ability to look beyond narrow, divisive policies and embrace the shared opportunities that openness offers. Continued efforts to promote trade and investment openness will be vital in preserving the stability and efficiency of regional economy.
China, with its resilience, potential, and capacity for innovation, continues to support this vision, contributing not just to its own growth but to shared regional prosperity. China has played a critical role in fostering regional economic cooperation within APEC. In 2022 alone, trade between China and other APEC economies reached $3.74 trillion, representing nearly 60% of China’s total trade, while 73.3% of China’s outbound investment flowed to APEC partners.
China’s initiatives—whether in advancing RCEP, negotiating an upgraded China-ASEAN Free Trade Area, or seeking accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA)—embody a steadfast commitment to open regionalism.
As APEC economies, we should champion policies that foster an integrated regional market, where trade and investment flows unhindered, supply chains remain robust, and prosperity is a common goal. By doing so, we reaffirm our commitment to an Asia-Pacific future that thrives on openness, collaboration, and the spirit of cooperation that APEC has long championed.
Writer is Chief Business News Editor of CGTN
Email: [email protected]
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