China backs regional trade pacts after U.S. exits TPP
China is hoping to be past of two regional trade proposals — the Regional Comprehensive Economic Partnership (RCEP) and the Free-Trade Agreement of the Asia-Pacific (FTAAP) — following the formal exit of the U.S. from the Trans Pacific Partnership (TPP).
Withdral of US
President Donald Trump signed an executive order, withdrawing the U.S. from the 12-nation trade deal, widely seen in China as a Washington-led attempt to contain its rise.
US withdrew on the ground that under TPP it conceded higher trade concessions to member nations of TPP.
What is TPP?
The Trans-Pacific Partnership (TPP), or the Trans Pacific Partnership Agreement (TPPA), is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. The finalized proposal was signed on 4 February 2016 in Auckland, New Zealand, concluding seven years of negotiations. It currently cannot be ratified due to U.S. withdrawal from the agreement on 23 January 2017.
What is RCEP?
The Regional Comprehensive Economic Partnership (RCEP) is a so-called mega-regional economic agreement being negotiated between the 10 ASEAN (Association of South-East Asian Nations) governments and their six FTA partners: Australia, China, India, Japan, New Zealand and South Korea.