China has warned the United States not to politicise international trade following comments by President Barack Obama as the Trans-Pacific Partnership (TPP), a U.S.-led free trade deal in the Asia-Pacific that excludes Beijing, was signed.
China’s Foreign Ministry spokesman Lu Kang on Friday urged relevant countries and governments “not to politicise economic and trade issues”, and avoid leading people to the conclusion that the U.S. has been promoting the TPP “out of certain political consideration”.
Mr. Lu was responding to remarks by President Obama on Thursday as the TPP was signed by 12 countries in Auckland that “TPP allows America — and not countries like China — to write the rules of the road in the 21st century”.
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Mr. Lu said such comments were “interesting”.
After several years of negotiations, the TPP has emerged as a controversial document, both within the U.S. and beyond. “Trade is a good thing. But trade has got to be fair. And the TPP is anything but fair,” said Bernie Sanders, the Senator from Vermont, who is challenging Hillary Clinton for the Democratic Party’s presidential nomination.
U.S. Trade Representative Michael Froman said the deal could add $100 billion a year to U.S. growth. However, critics say that the pact would export U.S. jobs to other member states. The TPP is also being strongly criticised for threatening to extend restrictive U.S. intellectual property (IP) laws globally.
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The BBC is reporting that, “The U.S.-led initiative is a key part of Mr. Obama’s so-called pivot to Asia” — widely seen by Beijing as President Obama’s double-edged doctrine of China’s military and economic containment.
The Chinese spokesman, countering Mr. Obama’s assertion, pointed out that instead of a single nation, defining international trade rules was the responsibility of the World Trade Organization (WTO). “We have always been advocating and maintaining the World Trade Organization’s leading role in formulating global trade rules. We hope major trade countries and major economies can commit themselves to maintaining the WTO’s status in this regard”. He stressed that the assumption that China would like to define the rules of international trade was flawed.
“We never believe that China alone determines the formulation of the agenda and rules of global trade of the 21st century, neither do we believe it’s possible for any other country alone to do so,” Mr. Lu observed.
An editorial in the state-run tabloid Global Times proposed that instead of feuding with the Americans, China must continue to strengthen its own economy — a move that will force the TPP to adapt.
“China cannot compete with the U.S. in rule-making and its advantage lies in whether it can push forward the country’s economy. As long as the Chinese economy keeps growing, the newly emerged economic volume and trade opportunities will be so prominent that the TPP in some way has to adapt. China will be better off with its own economic performance than racking its wits to compete with the TPP,” the write-up observed.