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pampango

(24,692 posts)
Fri Jun 27, 2014, 04:59 PM Jun 2014

How China views the TPP, the WTO and bilateral trade agreements.

China’s FTA Strategy

Beijing takes a strategic approach on free trade agreements, particularly in the face of challenges such as the TPP.

This post explores the motivations of China’s promotion of FTAs, and examines its FTAs to highlight underlying trends and the future strategies Beijing may pursue in the face of the challenges posed by mega-regional trade deals such as the Trans-Pacific Partnership (TPP) and Regional Economic Comprehensive Partnership (RCEP.)

China has one of the busiest FTA programs in Asia. Agreements in place include FTAs with countries such as Chile, Costa Rica, New Zealand, and Switzerland. Meanwhile, FTAs now in the pipeline will boost China’s economic integration with Australia, Japan, the Republic of Korea, Norway, and the Gulf Cooperation Council countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates. China has recently taken a more comprehensive and vigorous approach to FTAs. For example, agreements with Iceland and Switzerland, signed in 2013, provide wider coverage in goods, services, and investments.

Meanwhile, a number of initiatives are underway to liberalize trade and facilitate investment within the region. For instance, RCEP incorporates a range of Asia-Pacific countries, such as ASEAN, Australia, China, India, Japan, and New Zealand. The fourth round of negotiations was held in Nanning, China, from March 31 to April 4, 2014. it is expected to be concluded by 2015.

On the other hand, the U.S.-centered TPP negotiations have put China under considerable pressure. Though it is open to joining TPP negotiations, given its domestic industrial structure China would find it difficult to accept some of the issues under negotiation. Issues such as state-owned enterprises or labor and environmental standards would impose very high costs on China’s domestic industries. Consequently, Beijing has been cautious on joining TPP talks.

http://thediplomat.com/2014/06/chinas-fta-strategy/

China seems to be negotiating many bilateral trade agreements rather than going for multilateral deals. Perhaps this is because they are sensitive to maintaining control of their "domestic industrial structure" (weak unions, lots of pollution). That is easier to do with bilateral deals in which they are the larger, stronger partner rather than multilateral deals where things get more complicated.
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How China views the TPP, the WTO and bilateral trade agreements. (Original Post) pampango Jun 2014 OP
It took me a moment to figure out that 'FTA' was 'free trade agreement' Erich Bloodaxe BSN Jun 2014 #1
well hell, aren't we doing the same? onethatcares Jun 2014 #2
it's another "thanks, Obama!" moment lol nt msongs Jun 2014 #3
Indeed. Laelth Jun 2014 #4

Erich Bloodaxe BSN

(14,733 posts)
1. It took me a moment to figure out that 'FTA' was 'free trade agreement'
Fri Jun 27, 2014, 06:10 PM
Jun 2014

When I saw 'China's FTA strategy', my mind first suggested 'China's f.... them all strategy'.

onethatcares

(16,133 posts)
2. well hell, aren't we doing the same?
Fri Jun 27, 2014, 06:18 PM
Jun 2014

by giving up our own control of American industrial structure everytime one of these agreements goes down?

We weaken our positions regarding unions, pollution, regulation etc.

I'm just a damn carpenter but I don't see, and haven't seen anything that benefits anyone other than the investor

class when it comes to these.

China is just watching us screw the pooch, imho.

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