China ‘needs’ trade pact like CPTPP to force it into domestic reform, says former commerce minister
- Wei Jianguo says China joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could spark positive reform in some sectors
- Wei says ratification of rival Regional Comprehensive Economic Partnership (RCEP) deal can also play an important role in negotiations with Japan and South Korea
Conditions are right for China to start negotiating entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), but it will be a “jump” for the country to meet the deal’s more stringent requirements, a former high-ranking minister says.
President Xi Jinping said in November last year that China was “actively considering” joining the trade pact, something that was reiterated by Premier Li Keqiang when he delivered the government’s annual work report last week. But there has been debate as to whether China would meet its terms of entry, including on state-owned enterprises, labour rights and e-commerce.
Wei Jianguo, a former vice-minister at the Ministry of Commerce, said China would need to carry out domestic reforms to join the trade deal.
“Some provisions of the CPTPP are more stringent, but China needs a higher-level free trade agreement to force reforms in some domestic fields and industries,” Wei told the state-backed 21st Century Business Herald on Wednesday.
Chinese enterprises can no longer lie in the primary stage of World Trade Organization accession and reap dividends with their cost advantages
“Chinese enterprises can no longer lie in the primary stage of World Trade Organization accession and reap dividends with their cost advantages, but should actively participate in a higher-level stage of global competition.”