People's Daily: TPP is far from reaching the point where China is not calm

On October 5th, the Trans-Pacific Partnership Agreement (TPP) ended negotiations under US leadership. Representatives from 12 countries including the United States, Japan, Australia, Canada, Singapore, Brunei, Malaysia, Vietnam, New Zealand, Chile, Mexico, and Peru reached an agreement on the agreement.

After the agreement was reached, Obama said in a statement that the United States cannot allow countries like China to formulate global trade rules, but the United States should set rules to set a "high standard" to protect labor and the environment while opening up markets for American products. The US media, such as The New York Times, also issued similar arguments. Since it comes to China, there is no doubt that TPP will have an impact on China. However, this influence is far from the point where China is "not calm."

First of all, there are counts in China. Since the TPP will come out sooner or later, it is an inevitable choice to face it. The United States has positioned the TPP as an important starting point for the "Asia-Pacific rebalancing" strategy in the economic field. The Obama administration is determined to achieve the TPP agreement. During the negotiation process, the United States advertised the TPP agreement as “open” cooperation, while on the other hand it excluded China on the grounds that it did not meet the so-called “high standards”. TPP accounts for 40% of the world's total GDP and one-third of the trade volume. Once completed, it will become the largest free trade agreement in history. Coupled with the "Transatlantic Trade and Investment Partnership Agreement" (TTIP), which is about to end negotiations, the United States is expected to use these two agreements to lead the new rules of international trade, investment, and service, so that developing countries including China can participate in international economic and trade relations. Face more uncertainties. Therefore, China keeps a close eye on the specific content and development trend of the TPP, and listens to its words and opinions.

Secondly, there are cards in China, and the TPP has always maintained its strategic strength. In recent years, accelerating the construction of a free trade zone and gradually establishing a free trade network around the foot, radiating the “Belt and Road” and facing the world is the direction of China's efforts and will not change due to the TPP. In 2015 alone, China has signed a Free Trade Agreement (FTA) with two major Asia-Pacific economies, South Korea and Australia. Currently, five of the 12 TPP countries have reached an FTA with China, and seven have participated in negotiations on China's “Regional Comprehensive Economic Partnership” agreement. At the same time, China adheres to a constructive attitude to promote multilateral trade cooperation and promote the upgrading of the China-ASEAN Free Trade Area. In the global economic governance, China's initiative to establish the Asian Infrastructure Investment Bank intends to include member countries including 57 countries, covering Asia, Oceania, Europe, Latin America, Africa, and is widely representative.

Third, China can see clearly and has objective judgments on the situation of the TPP. The intensive negotiations of the TPP agreement for more than five years have been difficult, and the recent meeting has not been going well. The negotiations scheduled to end on October 1 were forced to be postponed repeatedly because the parties were unable to reach a compromise on sensitive issues. Moreover, the agreement is only a node, and there are still many challenges in the domestic ratification process. Sensitive issues may cause controversy, which is still full of uncertainty.

Fourth, China fully understands that in the field of international economic and trade cooperation, any attempt to contain China will not succeed. As the world's second largest economy and the largest trader in goods trade with a scale of 10 trillion yuan of GDP, the Chinese market is extremely important to all countries in the world and has become a partner that many countries cannot ignore. The US government is also very clear that the interdependence of China and the United States in economics is deepening, and more and more domestic producers in the United States are actively expanding cooperation with China. For the same reason, it is difficult for other TPP member states to choose a sideline between China and the United States. For example, in 2013 and 2014, China has become Singapore's largest trading partner for two consecutive years, and Singapore has been China's largest source of investment for two consecutive years.

Finally, China has always believed that open cooperation is in line with the trend of the times. The international economic order should develop in a more just and rational direction, and the world is moving towards establishing a community. If TPP wants to move against the trend and engage in a "zero-sum game" in the economic field, the result of harming people will be unfavorable. Common development, mutual benefit and win-win situation are the correct solutions to trade rules. (The author is deputy director of the Institute of International Strategy of China Institute of International Studies)

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