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Analysts on Chinese bids to participate in the CPTPP, a strategic competition with the United States

China’s President Xi Jinping is January 30, 2015. After the United States withdrew from the Trans-Pacific Partnership Agreement, it applied for participation in the CPTPP, a trade agreement of 11 countries formed in 2018.

Fred Dufour | AFP | Getty Images

China may fail to participate in a comprehensive and progressive trans-Pacific partnership, Submit application Analysts emphasized the lack of US economic policy in the Asia-Pacific region.

CPTPP is a mega trade agreement of 11 countries formed in 2018. Donald Trump Withdrew the United States from the Trans-Pacific Partnership one year ago.

President Barack Obama He was negotiating the TPP to deepen US economic involvement in the Asia-Pacific region and counter China’s growing influence in the region.

All 11 CPTPP signatories must agree to China’s request for participation before China is granted accession. The countries included in the CPTPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

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Beijing’s tense diplomatic relations with some member states would undermine that opportunity, analysts said. China is also likely to face difficulties in meeting the demands of trade agreements for equal areas in many aspects of the economy, they added.

China is not the only country applying to participate in the CPTPP.With the UK Taiwan I did the same thing.

US ally of CPTPP

Japan has territorial disputes with China in the East China Sea, Australia Import duties imposed by China..

Canada and Mexico, on the other hand, may interfere with China through the US-Mexico-Canada Agreement or the USMCA. The trade agreement says “poison“A clause that requires one of the three members to consult the other member if they wish to pursue a trade agreement with a’non-market country’.

Many analysts said the clause could have targeted China. The USMCA will be negotiated by the Trump administration and will replace the North American Free Trade Agreement or NAFTA.

Meet the CPTPP standard

In addition to political hurdles, China Analysts said it was difficult to meet the CPTPP clause, which promotes cross-border data flow, labor and environmental protection, and restrictions on state-owned enterprises.

United States and European Union He is one of those who complain about China’s unfair trade practices, including subsidies to state-owned enterprises, lack of intellectual property protection, and forced technology transfers.

Joining a trade agreement would require China to agree to rules and labor and environmental regulations on state-owned enterprises that would be a major departure from its current stance.

“To join a trade agreement, China must agree to rules on state-owned enterprises and labor and environmental regulations that deviate significantly from its current stance,” said an economist at consultancy Capital Economics. ..

“How Promote self-sufficiency It can be squared with the CPTPP’s demands for a place of equal competition, “they added.

other Trade experts said it would not be too difficult for China to meet the requirements of a mega trade agreement.

This is because the CPTPP is less ambitious than its predecessor, the TPP. Stephen Olson, a senior researcher at the Hinrich Foundation, a non-profit organization focused on trade issues, said “sufficient exceptions and wide loopholes” to help China comply with more difficult regulations.

“And if the prescribed exceptions are inadequate, China has already demonstrated its immense skills to bend, circumvent, or otherwise invalidate the trade rules of other agreements,” Olsen said. Said.

“Smart diplomacy”

Regardless of its success, the analyst said China CPTPP bid The United States has focused primarily on security issues in the region, but emphasized its growing economic influence in the Asia-Pacific region.

This is especially true for Chinese applications New security partnership According to analysts, it is called AUKUS in Australia, the United Kingdom and the United States.

“This move draws diplomatic attention to trade and investment issues in the Asia-Pacific region, where the United States has made little progress in countering China’s economic burden,” said an Eurasian Group analyst. It is wise diplomacy after the announcement. “

Unfortunately, one thing that is clear is that the United States is reacting again rather than leading, letting China decide the course of events in Asia.

William Reinche

Center for Strategic and International Studies

Analysts on Chinese bids to participate in the CPTPP, a strategic competition with the United States

https://www.cnbc.com/2021/09/27/analysts-on-chinas-bid-to-join-cptpp-strategic-competition-with-us.html Analysts on Chinese bids to participate in the CPTPP, a strategic competition with the United States

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