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Opinion | RCEP offers China a fresh start to counter US influence in Asia-Pacific
- The Regional Comprehensive Economic Partnership (RCEP) will allow China to enhance its sphere of influence in the face of US economic pressure
- China’s risk of losing relevance in international value chains will diminish, and the deal may have killed the idea it can be isolated in the global economy
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The signing of the Regional Comprehensive Economic Partnership (RCEP), a trade pact which excludes the United States, is a new beginning for China to enhance its economic sphere of influence in the Asia-Pacific.
While its immediate impact might be small, the fact that China, Japan, South Korea, the Asean bloc nations, Australia and New Zealand have signed the deal is a win for Beijing amid a push from the US for decoupling.
The deal also shows trade and investment flows between China and the world can be boosted without touching on thorny issues, ranging from ideological differences to state-owned enterprises.
02:10
China scores victory as 15 Asia-Pacific nations sign RCEP, the world’s biggest free-trade deal
China scores victory as 15 Asia-Pacific nations sign RCEP, the world’s biggest free-trade deal
After the deal comes into effect, China’s risk of losing relevance in international value chains will diminish.
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The threat from the rival Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which excludes China, can be mitigated even if the US joins under Joe Biden’s presidency. The Economic Prosperity Network, a US-led economic alliance with partners of “shared values”, will find it harder to isolate China.
And Taiwan, which has pushed to integrate new supply chains with the US, European Union and Japan, will find it more difficult to escape the mainland’s economic orbit.
In short, the deal may have killed the idea China can be isolated in the global economy
In short, the deal may have killed the idea China can be isolated in the global economy.
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