China left out of the Indo-Pacific deal, pushed towards the world’s largest trade deal

Amidst the fanfare of US President Joe Biden New Indo-Pacific StrategyChina flew under the radar and hosted a high-level discussion on RCEP, the world’s largest trade agreement.

it came after the days of Biden Administration Launches Indo-Pacific Economic Framework, or IPEF – A partnership that includes 13 countries excluding China, as the US seeks to expand its political and economic leadership in the Indo-Pacific.

Regional Comprehensive Economic Partnership (RCEP) The meeting in Hainan’s southern island underscored analysts’ expectations that instead of reacting to or countering IPEF, China would move forward with agreed trade agreements and take advantage of ready-to-go tariffs and market access.

at Nanyang Technological University, Singapore. “China will not take immediate or very targeted measures to respond to the IPEF,” said Li Shirui, a trade scholar at the Rajaratnam School of International Studies.

At the second RCEP media and think tank forum held in Haikou’s capital Haikou over the weekend following the IPEF announcement, non-governmental trade experts from across the region gathered to discuss further ways to expand trade within the bloc.

The RCEP includes Australia, Japan, South Korea and New Zealand along with China and the 10-member ASEAN bloc.

Led by the Hainan government, the meeting also marked another provincial effort to implement Beijing’s comprehensive strategy. RCEP since its launch earlier this year,

“In line with its support of multilateralism and globalization, China can continue to promote the adoption of RCEP because this grant member has vast market access, which IPEF lacks,” Li told CNBC.,

He said that China will probably answer the US on any of these. Its future Asia-Pacific economic endeavors by expanding its economic dominance in the region and increasing its trade under RCEP.

Beijing will also focus its applications on joining other large-scale trade deals, including the second largest global trade agreement, the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), Li .

This will be China’s strategy IThat’s how it, and with other states and political observers, sees IPEF – a no-trade deal and Biden’s geopolitical rather than economic leanings in the Asia Pacific, Lee said.

In late May, following the launch of IPEF, fFormer Malaysian Prime Minister Mahathir Mohamad criticizes Indo-Pacific dealAnd said it was a political move by the US to isolate China.

Malaysia is one of the 13 countries that joined the IPEF, which did not include China.

Business expert Heng Wang, who is at the Herbert Smith Freehills China International Business and Economic Law (CIBEL) Center at the University of New South Wales, also considered that China would continue to use market access under RCEP as they would allow the region. To further strengthen its presence in

“RCEP is the only mega regional trade agreement to which China is a party, and China can expose it,” Wang said.

Henry Gao, associate professor of law at the Singapore Management University, said the threat of a competitive trade deal by the US remains a reality.

“If anyone doubts the US view of IPEF as an RCEP-killer, the White House clearly stated [IPEF] Declaration, that: ‘Together, we represent 40% of world GDP,'” Gao said.

“Why [use] This statement when IPEF is not considered about market access?”

Gao pointed to the similarity of comments made by RCEP members, particularly China, which are advertising the fact that RCEP accounts for 30% of world GDP.”