Following inherently protectionist comments by U.S. President-elect Donald J Trump hinting that he would withdraw the country from the proposed Trans Pacific Partnership (TPP), China has said that they are keen to increase multilateral and bilateral talks with a goal to opening its economy further and reforming policies.
Should Trump follow through on his pledge regarding the TPP, the Chinese-backed Regional Comprehensive Economic Partnership (RCEP), which excludes the U.S., might emerge as the new free trade front-runner for the Asia-Pacific region.
Beijing have made it clear that whatever happens with the two proposed free trade deals, the communist nation is committed to deep reform. When asked for details on the plan, Shen Danyang, Commerce Ministry spokesman, said the plans were “all encompassing” and included economic reforms “at all levels of government”.
Shen mentioned that he hoped RCEP negotiations would be concluded in the near future and was certain that Association of Southeast Asian Nations (ASEAN) members would be pivotal in any deal.
The statements from the central government come after a recent speech by the country’s leader, President Xi Jinping, at the APEC summit in Lima in which he promised to open up the nation’s economy “to a greater degree than ever before”. The comments come at a geopolitically important time, as all eyes are on the incoming U.S. administration posts to gauge the seriousness of Mr Trump’s campaign pledges and future policies on international trade.
Over a dozen countries are included in the RCEP, including Australia, New Zealand and India, and the deal is seen as a precursor to the APEC grand plan of a Free Trade Area of the Asia-Pacific (FTAAP) agreement.
Many Chinese trade experts are unsurprised by the collapse of the TPP and the state-run English newspaper The China Daily described the pact as “overwhelmingly complicated” and “destined never to get off the ground”. Prominent Beijing-based investment and trading firm CTI China Renaissance mentioned in an editorial that it would be awaiting a more practical trade deal proposal before advising clients.
