(Yicai Global) Jan. 26 -- China prompts members of the new Regional Comprehensive Economic Partnership, including Australia and Singapore, to use its currency in trade and investing.

Using the Chinese currency should help market players reduce their exchange costs and avoid exchange rate fluctuation risks, the commerce ministry and five other government departments said in a guideline published on the ministry's website today.

The world's second-largest economy is one of the 15 members of the above-mentioned free trade agreement which came into force early this month. Some of the other parties of the world's biggest trade bloc are Japan, Australia, and Thailand.

It is necessary to provide a good system for the cross-border use of the yuan while supporting financial institutions to introduce trading, investment, and hedging products with the Chinese currency, according to the guideline. China should provide market players with efficient renminbi-denominated financial products and services overseas, it added.

China needs to enhance its credit support for trade enterprises. It must support qualified companies to expand their direct financing channels, and optimize credit and guarantee products and services for small, micro, and private enterprises, based on the document.

The guideline mentioned certain regions. China should roll out plans and policies for the Hainan free trade port in southern China, conduct an in-depth study of the pact's rules and terms, in part regarding market access. It should encourage key regions in central, western, and northeastern China to strengthen the construction of platforms for industrial transfers.

Moreover, China needs to expand its economic and trade cooperation functions for RCEP members by promoting the construction of a new western land-sea corridor, as well as through the Beibu Gulf International Gateway Port, along with strategic demonstration projects.

Local governments should strictly implement the laws, regulations, and rules corresponding to the obligations of the RCEP, and give full play to the role of the agreement to improve the trade and investment environment while actively bringing in funds and talents to the region.

China should strengthen local governments' services, guide enterprises to explore RCEP member countries' markets, and promote the export of competitive products. It should accelerate the development of new business formats and models of foreign trade, and encourage enterprises to improve their key marketing channels.

The country should cultivate local marketing service platforms, encourage companies to attract investment, and strengthen the service guarantee for foreign-funded enterprises. Moreover, it supports industry associations, enterprises, public institutions, and testing centers to strengthen their communications and cooperation with RCEP members to jointly develop international standards.

Finally, China needs to pay close attention to trade risks caused by the deep opening-up of regional markets. It must enhance its early warning system and legal services. China may use trade remedies in accordance with the laws to maintain industrial security. Moreover, the country needs to learn from common international practices and promote the establishment of a trade adjustment and assistance system, per the document.

Editor: Emmi Laine, Xiao Yi