China looks to deepen regional integration via CPTPP as US rivalry grows
- President Xi Jinping says China is considering joining the Comprehensive and Progressive Trans-Pacific Partnership Agreement
- It marks a significant shift in Beijing’s attitude, after watching warily from the sidelines as the US-led trade pact was first negotiated
China is trying to turn a strategic threat into an asset in its rivalry with the United States by publicly stating it wants to join the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP).
President Xi Jinping told Asia-Pacific leaders last week that China was “actively considering” joining the trade pact. It showed Beijing has made up its mind that obtaining membership to the CPTPP – which replaced the Trans-Pacific Partnership (TPP) after the US pulled out – or even engaging in discussion about joining, will do more good than harm.
It marks a significant shift in Beijing’s attitude. China watched warily from the sidelines as negotiations for the US-led Asia-Pacific trade pact began in 2009 under the Obama administration.
When the TPP was finally signed by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US in 2016, Beijing was uncomfortable at the prospect of being marginalised in future regional trade.
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Some people have ridiculed the idea of China joining the TPP, likening it to Napoleon’s French Empire joining an anti-France coalition. Analysts have read the TPP text and concluded China could not meet the standards set for the environment, labour, human rights, transparency and freedom of information.
However, its bid to join supports Beijing’s narrative that it is a leader in free trade and multilateralism. It also shows China’s sincerity to regional economic integration, even though the terms are not entirely favourable for it.
The pressure is now on members of the CPTPP to decide whether they are open for talks. Given China’s size and influence, it will be hard to ignore the request.
The process of China meeting CPTPP standards could help economic liberalisation at home, just as China’s entry into the World Trade Organization unleashed China’s economic boom.
