Trade Active Policy

RCEP Implementation Phase 2: Tariff Reductions Accelerate (2025-2026)

Published: November 1, 2025

Executive Summary

The Regional Comprehensive Economic Partnership (RCEP) entered its second implementation phase in November 2025, triggering another round of tariff reductions between China and member countries. Tariffs on thousands of additional product lines were reduced or eliminated, deepening Asia-Pacific trade integration.

Key Points

1

Additional tariff reductions on thousands of product categories took effect November 2025

2

Cumulative rules of origin further simplified, allowing components from any RCEP member to count toward origin requirements

3

China's average tariff rate on RCEP imports dropped below 5% for the first time

4

Services trade commitments expanded: professional services, logistics, and financial services included

5

E-commerce provisions activated: paperless trading, electronic signatures, and consumer protection

6

Foreign companies using China as a manufacturing hub benefit from preferential access to all 15 RCEP markets