Asian AngleWhy the CPTPP could be the answer to the US-China trade war
- China’s joining could ease tensions with the US, accelerate growth, diversify markets and modernise the country. What’s not to like?
A bold decision by China to join the CPTPP could address many challenges that the continuing trade war created. By adopting CPTPP trade rules, China could ease tensions with the US and other countries. By joining a dynamic regional trade network, China could accelerate its economic growth and diversify its markets. And by committing itself to high international policy standards, China could energise its own reforms in building a modern, open economy.
Let’s begin with the economics. The CPTPP would lend momentum to China’s “opening up” policy, which is widely seen as crucial to China’s growth. China already has robust trade and investment relations with other CPTPP members, yet the agreement could reduce some high barriers that still saddle this trade. Trade would increase in Asia-Pacific networks, making manufacturing supply chains even more productive and diversifying the region’s dependence on North America.