Xi Jinping "Actively Considering CPTPP Membership"... Foreseeing US-China Competition for Global Economic Leadership

Stimulant for Joe Biden's Next US Administration with No Clear Mention of TPP
APEC Leaders Adopt Future Vision for Trade, Digital Economy, and Sustainable Growth

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Kim, International Department Reporter] Chinese President Xi Jinping mentioned the "Asia-Pacific Community of Shared Destiny" at the Asia-Pacific Economic Cooperation (APEC) summit held on the 20th, stating that China will actively consider joining the "Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)," which the United States has withdrawn from. With U.S. President-elect Joe Biden also expressing a return to multilateral trade, attention is focused on the possibility of a leadership struggle between the U.S. and China over TPP membership.

In his speech at the APEC summit themed "Optimizing Human Potential for a Resilient Future of Shared Prosperity," President Xi said, "The global economy is like the Pacific Ocean beside us. A thousand waterways converge and flow into the four seas (Sihai)," emphasizing that "the world and the Asia-Pacific region are currently undergoing profound transformations. The future of Asia-Pacific cooperation will determine regional development, people's welfare, and the future of the world."

He added, "One of APEC's important missions is to initiate long-term cooperation beyond 2020," and said, "We should use this as a starting point to begin a new phase of Asia-Pacific cooperation and build an open, inclusive, growth-oriented, interconnected, communicative, cooperative, and shared-prosperity Asia-Pacific Community of Shared Destiny." He further stated, "China welcomes the conclusion of the Regional Comprehensive Economic Partnership (RCEP)" and "will consider joining the CPTPP."

Previously, China had expressed an open attitude toward the CPTPP, which it once perceived as a containment network against itself. Gao Feng, spokesperson for China's Ministry of Commerce, also said regarding China's CPTPP membership, "China maintains a proactive and open attitude."

Attention is focused on whether competition for global economic leadership will intensify if both the U.S. and China participate in the CPTPP. During former President Barack Obama's administration, the U.S. created the Trans-Pacific Partnership (TPP), the world's largest trade agreement covering the Asia-Pacific region, centered on key allies and partners such as Japan, Australia, and Canada, excluding China. However, President Donald Trump, who shifted to isolationism prioritizing national interests, decided to withdraw, leading the remaining countries, including Japan, to launch the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

President-elect Biden, who served as vice president during the Obama administration, is highly likely to actively engage in multilateral trade. Regarding the recent launch of the massive multilateral trade agreement RCEP, including China, he stated, "We, not China, must set the rules," and emphasized the need to "cooperate with other democracies."

If China hastens its CPTPP membership following RCEP, as President Xi suggested, it is unlikely that the U.S., which is busy managing the COVID-19 pandemic, will remain passive. In this case, the U.S. is expected to rejoin the CPTPP and actively compete with China for global economic leadership. This suggests that U.S.-China conflicts may emerge in new arenas.

Meanwhile, APEC leaders adopted the future vision for further advancing trade and investment liberalization and economic integration in the Asia-Pacific region, the "APEC Putrajaya Vision 2040." 'Putrajaya' is the administrative capital of Malaysia, the host country of this summit. The leaders stated that APEC's future vision is "to build an open, dynamic, resilient, and peaceful Asia-Pacific community by 2040 for the prosperity of all people and future generations." They presented future visions in three areas: ▲trade and investment ▲innovation and digital economy ▲inclusive and sustainable growth.