Illustration: Luo Xuan/GT

A Chinese expert said that the 36th ASEAN Summit Chairman's Statement that calls for the signing of the Regional Comprehensive Economic Partnership (RCEP) trade pact by the end of 2020 will not only help the recovery of East Asia's real economy that has been upended by the COVID-19 pandemic, but also boost market confidence and the global economy.

A statement was released on Saturday and leaders of the member countries welcomed the progress made for the full conclusion of negotiations on the RCEP and looked forward to the signing of the deal by the end of 2020, Xinhua News Agency reported on Sunday.

On June 23, economic ministers of the 10 ASEAN member states as well as China, Japan, South Korea, Australia and New Zealand reaffirmed their commitment to signing the pact in 2020, said Xinhua.

"The statement shows that East Asian countries have always agreed on pursuing economic cooperation, trade liberalization and multilateralism," Tang Qifang, an associate research fellow at the China Institute of International Studies, told the Global Times on Sunday.

"They have common economic interests, and have especially strong need of economic recovery under current severe circumstance of the coronavirus pandemic," said Tang.

"ASEAN member states are outward oriented, small and medium-sized economies that don't have a complete industrial chain and vigorous domestic demand, which have been seriously affected by the pandemic," she said.

"The statement gives people hope and confidence, which is very important for the world economic recovery, after long gloomy days caused by COVID-19," Tang noted, adding that the RCEP can foster economic growth, business and trade, and poverty reduction within the region.

In the newly released 36th ASEAN Summit's Chairman Statement, the leaders underscored the importance of free trade agreements like RCEP in transforming the region into a global ASEAN, in contributing to the post-pandemic recovery and in creating resilient supply chains, Xinhua reported.

Once signed, the RCEP will be the world's largest free trade bloc, accounting for 45 percent of the world's population, 40 percent of global trade and around one-third of the world's GDP, said Xinhua.

"East Asia has a mature industrial chain, and RCEP makes industrial division within the region through preferential policies in terms of tariff, logistics, export, agriculture and telecommunication," said Tang, adding that "East Asia is the engine of global economic growth, and the integrity and vitality of East Asia's industrial chain are crucial to the global economy."

"Only through joint cooperation can countries achieve victory in the fight against COVID-19 and achieve post-pandemic economic recovery," she noted. "Under growing unilateralism and anti-globalization worldwide, China should actively promote globalization and regional cooperation with other East Asian countries."

The RCEP, initiated by ASEAN in 2012, is a proposed free trade agreement between the 10 member states of the association and its six FTA partners - China, Japan, South Korea, Australia, New Zealand and India, according to Xinhua.