Hong Kong, Sep 29 (ANI): China’s participation in the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP) pact has the potential to quadruple Beijing’s economic gains.
This would dramatically shift the balance of power in international trade and leave the United States “increasingly isolated,” as the Chinese newspaper itself said, The HK Post reported.
According to The HK Post, this is a response to the historic AUKUS security alliance between the UK, US and Australia.
China has asked to join a key Asia-Pacific trade deal as it tries to strengthen its position in the region.
China’s decision to join the CPTPP is seen as a retaliatory measure to counter the effect of the alliance whose sole purpose is to manage and combat China’s growing influence in the Asia-Pacific region.
China quickly called the AUKUS alliance extremely irresponsible and added that it poses a serious risk to regional peace and has the potential to escalate the arms race, The HK Post reported.
The AUKUS Pact allows Australia to build nuclear-powered submarines using technology provided by the United States and the United Kingdom. It also covers other technical areas such as artificial intelligence and has been considered Australia’s largest defense partnership agreement for decades.
The CPTPP officially entered the scene in 2018, signed by 11 countries in Santiago, including Australia, Chile, Japan and New Zealand, all located in the Asia-Pacific region.
The global economies included in the recent Trans-Pacific Partnership represent nearly half a billion consumers and 13.3% of global GDP, reported The HK Post.
The Trans-Pacific Partnership Pact, which later became the CPTPP, was created as an economic bloc by the United States to counter China’s growing influence in Asia-Pacific, The HK Post reported.
However, in 2017 Donald Trump, then President of the United States, withdrew from the deal.
Being one of the world’s largest economies, China’s participation in the pact has the potential to quadruple the economic gains of the agreement.
Arguably, joining CPTPP would bring a major boost to China given its active participation in various free trade agreements with 14 other countries called RCEP, i.e.Regional Comprehensive Partnership.
A major concern, according to The HK Post, would be whether China would use the Pact to avoid tariffs imposed by Trump’s trade war. China could send raw materials to CPTPP members like Vietnam. The factories there would send finished products to America, avoiding tariffs.
Japan, the country chairing the CPTPP this year, said it would seek consultation with member countries to meet China’s request. (ANI)