By Zha Daojiong (China Daily)
The establishment of the Asian Infrastructure
Investment Bank, and the proposals of the Silk Road Economic Belt and the 21st
Century Maritime Silk Road for integration with economies along the two roads
are bold but not challenging moves by China. Yet they are not intended to
rewrite established rules of global economic governance.
The China-ASEAN Free Trade Agreement covers the
world's largest free trade area in terms of population and is the third-largest
in terms of nominal GDP. China is indeed moving fast in upgrading its trade
ties with major economies. And the fact that its three FTA partners -
Australia, Canada and the Republic of Korea - are strategic allies of the
United States suggests China doesn't consider the US-led security alliance as
an obstacle to trade liberation and investment protection.
These may be China's geo-strategic moves, but of
all the FTAs in the Asia-Pacific, the Trans-Pacific Partnership Agreement is by
far the most geo-strategic in nature. The irony is that despite not being part
of the TPP, China doesn't differ that much with the US in terms of the texts of
the treaties under negotiation. The China-US Bilateral Investment Treaty is
envisioned to include all sectors and all stages of investment. Plus, the BIT's
contents are similar to those in the TPP's investment chapter.
So, what is keeping Beijing and Washington apart
in the TPP process? The short answer is that neither Beijing nor Washington
would want to share the negotiation room with the rest of the TPP players.
Geopolitical considerations certainly play a role, for the TPP, according to US
analysts, is as much about leadership competition as it is about trade and
investment.
China's efforts to build the Free Trade Area of
the Asia-Pacific could also be seen as a geo-strategic move. Unlike the TPP,
the FTAAP will not draw a dividing line in the Pacific, but still the US has
not suggested a specific timeline for the FTAAP. China, nevertheless, has
started a collective strategic study on how to build the FTAAP. Hopefully, this compromise will hold.
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