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With TPP Dead, China Officially Launches Its Own Pacific Free-Trade Deal

from ZeroHedge:

As we noted on Thursday, “it was ludicrous for Obama to leave China out of things. China is the second biggest economy in the world, third if you treat the EU as a block. Had China been in the deal all along, we may not have seen the ludicrous provision that allowed companies to sue governments. That provision was one of the key reasons the deal failed. With the election of Trump, TPP is officially dead. China, not the US, will be at the center of a new Asian trade pact.”

Furthermore, as Mish Shedlock pointed out, on November 10, in the wake of Trump’s election, Beijing quickly sought to fill the void left by TPP by reviving its proposed Free Trade Area of the Asia-Pacific pact.

“Xi Jinping is rekindling efforts to promote a rival to the US-led Trans-Pacific Partnership trade agreement in the wake of Donald Trump’s election victory, Chinese officials said on Thursday. With Mr Xi set to travel to Peru this month for the annual Asia-Pacific Economic Co-operation summit, Li Baodong, vice-foreign minister, said China’s plan could fill the void. Chinese officials have previously sought to promote the proposal at Apec, only to encounter resistance from US officials who wanted to prioritise TPP negotiations.

“Protectionism is rearing its head and the Asia-Pacific region faces insufficient growth momentum,” Mr Li said at a briefing on China’s plans for Apec, which starts next weekend. “China believes we should set a new plan to respond to the expectations of industry and sustain momentum for the early establishment of a free trade area”

US officials have warned for months that the failure of the TPP would open the door to China to promote its own trade agreements, and that’s exactly what happened today when at the meeting of Asia-Pacific Economic Cooperation (APEC) member states in Lima, Peru, Chinese President Xi Jinping officially called for the launch of the Free Trade Area of Asia-Pacific for “institutional guarantee of open economy.”

From Xi’s point of view the free trade area will be an institutional guarantee for opening economies of the APEC countries, the Xinhua news agency reported. The president said that the Asia Pacific region should play a leading role and seek new paths for global growth. He also said that China was going to expand foreign investment access to its market and to offer more capital, products and business opportunities for other nations.

Read More @ ZeroHedge.com

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