China to push forward own trade vision after Trump withdraws from Pacific deal
Mainland analysts say Beijing should stake out ground before US comes up with alternative
Beijing said on Tuesday it remained committed to free trade and that it would push its own trade packages after the US formally withdrew from the Trans-Pacific Partnership (TPP) trade pact.
US President Donald Trump signed an executive order on Monday ending US involvement in the 12-nation deal.
In Beijing, foreign ministry spokeswoman Hua Chunying said China would continue to back alternatives to the TPP – including the Free Trade Area of the Asia-Pacific and Regional Comprehensive Economic Partnership (RCEP).
Washington’s withdrawal from the TPP may provide China with an opportunity to expand its influence in the region, but mainland analysts remain cautious over how much the country could benefit from the void left by Washington. But Beijing should move quickly to bolster the attractiveness of its own trade packages.
Hua said China had achieved significant progress in negotiating the RCEP, and talks were expected to end soon, to create new momentum for the economic development in Asia Pacific”.
“We have always advocated that trade rules should be formed based on consensus reached by related parties,” Hua said. “With a spirit of openness, inclusiveness and transparency, we will continue to push for the economic integration of the Asia Pacific region.”
The decision by Trump to end the US pursuit of the TPP is part of his wider push to put “America first”, including through creating manufacturing jobs at home and seeking a more protectionist trade agenda. The shift offers China a chance to replace the US as a leader of globalisation.