China applied to join Asia-Pacific Free Trade

China has applied to join the Asia-Pacific Free Trade grouping of 11-nation in a bid to increase its influence over international policies.

Highlights

• Application was submitted by the Commerce Minister Wang Wentao, to the Trade Minister of New Zealand as a representative of Comprehensive & Progress Agreement for Trans-Pacific Partnership (CPTPP) or the Asia-Pacific free Trade grouping.
• CPTPP was originally the Trans-Pacific Partnership. It was a group promoted by former President Barack Obama as part of USA’s increasing emphasis on its relations with Asia.
• China was not included in the initial group.
• Donald Trump had pulled out the group in 2017 and the current President of US Joe Biden has not yet re-joined the group.

About CPTPP

CPTPP is a trade agreement among 11 countries namely, Australia, Brunei, Chile, Canada, Japan, Mexico, Malaysia, Peru, New Zealand, Singapore, and Vietnam. This grouping was evolved from Trans-Pacific Partnership (TPP). TPP had been signed on 4 February 2016,that never entered into force because of withdrawal of the United States. Eleven signatories of the grouping have a combined economies that represents 13.4 percent of global gross domestic product.

China’s promise

Government of China has promised to increase imports of goods. However, it faces complaints on failing to carry out promises when it joined the World Trade Organisation in 2001 in order to open finance and other service industries. China is also a member of other trading arrangements like Regional Comprehensive Economic Partnership.

Month: Current Affairs - September, 2021