One framework supporting regional trade is the Regional Comprehensive Economic Partnership (RCEP), a 15-party trade pact bringing together China, Japan, the Republic of Korea, Australia, New Zealand and 10 ASEAN countries. RCEP took effect in January 2022 and has been in force for all 15 signatories since June 2023. Under its rules of origin, materials originating in one member country and used in the production process of another are treated as originating materials of the latter.

　　For enterprises like Anhui Sanley Machinery Co., Ltd., a Chinese maker of auto and motorcycle parts, this rule has translated into measurable savings. The company uses precision hardware from the Republic of Korea and rubber components from Thailand to manufacture products that are subsequently exported to markets including Indonesia and Malaysia.

　　Lin Jian, an executive at the company, said its exports to ASEAN reached 28 million yuan in the first five months of 2026, up more than 10 percent year on year, while RCEP certificates of origin helped its customers save over 2 million yuan in tariffs.

　　Xu Yingming, head of the international market research institute at a research academy under China"s Ministry of Commerce, said RCEP and the China-ASEAN Free Trade Area have reduced transaction costs and created conditions for closer integration of regional industrial chains.

　　The arrangements allow companies to allocate resources across borders at a lower institutional cost, enabling production stages that were once dispersed across different countries to become more closely connected, Xu explained.