Research Article

Modelling the Impact of RCEP Agreement on the Economic and Trade Environment of Beijing

Table 1

SWOT analysis of RCEP’s impact on Beijing’s economic and trade environment.

Advantage (S)Threats (T)

Position advantage: Beijing is located in the center of the Bohai Rim region with numerous ports around itThe development of naive enterprises: Due to the immaturity of technology, operation and other factors, enterprises are easy to be competed for resources by foreign-funded enterprises with market experience, and even go bankrupt. Perish
Resource advantages: rich educational resources, research and development policy, and a good business environment, foreign investment enterprises, rich historical and cultural background. At the same time for talent gathering highlandTalent scramble: not only Beijing, other provinces and the world also need high-level professional talents
Advantages of service trade: the tertiary industry as the pillar, the development of service; Business trade industries such as financial services, digital economy, electronic services, system and environment innovation are not business, scientific and technological services
Weaknesses (W)Opportunities (O)
The industry in this region is facing more severe competition: the policy of opening to the outside world, and a good business environment, foreign enterprises have entered. If local firms are not strong enough to resist a run on them, they face the risk of bankruptcyReduce tariff: benefit Beijing area high-tech product export. And imports of products with high comparative advantages to improve people’s welfare The entry of foreign enterprises: improve the quality of local economy, bring talents and resources, and form healthy competition locally
The maturity of industrial cluster needs to be greatly improved: the industry is not systematic in terms of supporting industrial facilities and institutional environment innovation, and the low cluster level will affect its production efficiencyDeveloping characteristic economy: Beijing has just established a free trade zone, which can bring new resources, technology and vitality to the science and technology innovation zone, business service zone and high-end industry zone