Stalled US-led Trans-Pacific Pact puts China in free-trade pole position

When trade ministers from 12 countries wrapped up talks for the Trans-Pacific Partnership (TPP)in Atlanta little more than a year ago, it was widely seen as a major victory for the United States and US President Barack Obama’s pivot-to-Asia strategy.

Trade ministers from the US, Australia and Japan called the TPP an “ambitious” and “challenging” scheme that would cut red tape and “set the rules for the 21st century for trade”.

But when Pacific Rim leaders met in Peru for the Asia-Pacific Economic Cooperation (Apec) summit on the weekend, the tide had turned, with popular sentiment against globalisation, especially in the major developed economies.

The backlash was clear with Britain’s decision in July to leave the European Union and Republican Donald Trump’s victory in the US presidential election two weeks ago.

Eyes have since started to turn to China, which after three decades of rapid economic growth, has become the biggest trading partner for most Pacific Rim ­nations.

Beijing has underscored its commitment to free trade, with President Xi Jinping telling Apec business leaders on Saturday that “China will not shut the door to the outside world but will open it even wider”.