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Opinion / Op-Ed Contributors

US-led trade pact is not an impossible challenge

By Xu Man (chinadaily.com.cn) Updated: 2015-11-17 11:13

In contrast, China has an open approach toward the TPP; it welcomes any mechanism that conforms to World Trade Organization rules and would promote economic integration in Asia-Pacific. China is trying to create a more equitable and open environment for competition through comprehensive reform. Therefore, it could consider joining the TPP and deepen cooperation with the US if the conditions are suitable.

There are also concerns within ASEAN over TPP’s negative influences. Some ASEAN members are worried that the entry of Vietnam and Malaysia into the TPP will help them benefit from the transfer of the US’ and Japan’s production lines. This, they fear, will decrease the chances of Cambodia and Laos to join the global industrial chain, further widen the development gap within ASEAN and thus hamper its economic integration.

These developments should prompt China to work more closely with ASEAN to build the Regional Comprehensive Economic Partnership, an initiative which suits the Southeast Asian bloc’s realities like uneven development and accords it the leading role in promoting regional cooperation. Hopefully, the upgraded talks on China-ASEAN Free Trade Area, once completed by the end of this month, will usher in a “diamond decade” for all sides.

The 21st Century Maritime Silk Road, proposed by President Xi Jinping during his visit to ASEAN countries in 2013, has no threshold or standards for participation. It is aimed at dovetailing China’s development policies with those of other countries irrespective of their development levels to better serve the common interests of all participants.

China has formed economic and trade cooperation zones with Vietnam, Indonesia, Cambodia and Thailand, which are located along the 21st Century Maritime Silk Road. Such zones have indeed strengthened their economic relations, but there is still room for improving ties with other ASEAN member states in multiple fields.

The opportunities brought about by China’s efforts to push for interconnectivity among countries along the 21st Century Maritime Silk Road are expected to deepen its cooperation with ASEAN members, especially those that need financing and technologies to modernize their infrastructure.

The author is a researcher with the Chinese Academy of International Trade and Economic Cooperation, affiliated to the Ministry of Commerce.

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