Joining trade pact to boost China growth

China would add about 2 percentage points to annual economic growth by joining a Pacific trade pact in the view of the central bank's chief research economist.

The country should join negotiations on the Trans-Pacific Partnership (TPP) as soon as possible to reap the benefits, Ma Jun of the People's Bank of China said in an internal presentation in mid-June. South Korea and Vietnam would also add more than 2 percentage points to their growth rates as part of the TPP, the presentation said.

While joining the talks may help China counter an economic slowdown without resorting to large-scale stimulus, the 12 nations currently negotiating the TPP are expected to conclude an initial agreement before new members are admitted. The US and Japan said in April that there was "still much work to be done" on outstanding issues.

The pact would link an area with about US$28 trillion in annual economic output, or 39 per cent of the world total, and would be the biggest trade deal in US history. In addition to the US and Japan, nations seeking the deal are Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Ma, who came to the PBOC earlier this year from Deutsche Bank, sees the benefits from joining the TPP talks to China's GDP expansion accruing over several years to eventually reach 2 percentage points, the presentation showed. It did not give forecasts for China's actual pace of growth. The PBOC did not immediately respond to a request for comment. Ma did not respond to an e-mail seeking comment.

Commerce Minister Gao Hucheng said in March the nation is paying close attention to the TPP talks and hopes others can be open and inclusive on the accord.