China’s Views Regarding the Trans-Pacific Partnership Agreement and its Policy Response

• In Event: Aspects of US and Chinese Security and Economic Strategy

Abstract

Recent US-led negotiations for a Trans-Pacific Partnership (TPP) agreement have put China in a position of uncertainty for being left out of further Asia-Pacific integration. Generally, there are three views in China regarding the TPP. The first view considers US action to be a defensive gesture, aiming to reintegrate the US into the East Asian economy to avoid being left out of the region. The second view is that US policy is driven by a desire to counterbalance or contain China. The third view centers on the short-to-medium term impact of the TPP on reshaping global competition and the rules of trade.
In response to TPP negotiations, China has centered its policy agenda on actively promoting the conclusion of the ASEAN-led Regional Comprehensive Economic Partnership (RCEP) and strengthening the regional currency liquidity system and Asian Bond Fund in the ASEAN plus
Three format. The auxiliary policy has been to pursue a multi-track strategy to push for regional integration through bilateral regional or cross-regional free trade arrangements. China has also sought to upgrade regional bilateral trade agreements with nearby Asian countries. A China-Korea FTA and China-Japan-Korea trilateral FTA have attracted discussion in academic and policy circles as an important means to facilitatethe integration of ASEAN plus Three’s linking to RCEP. Finally, although many Chinese analysts question the likelihood for China to join the TPP, there is also some discussion for China to take initiative to set up domestic free trade zones and other experiments to help meet TPP standards.

Author

• Guanyi Leu, University of Mary Washington