Archive for ‘Trans-Pacific Partnership (TPP)’

28/09/2019

China set to join Arms Trade Treaty that Donald Trump threatened to abandon

  • Legal process under way, Beijing says after Foreign Minister Wang Yi tells United Nations China is committed to defending multilateralism
  • Any unilateral move to leave weapons control pact will have a ‘negative impact in various areas’, minister says in thinly veiled swipe at United States
China, the world’s fifth-largest weapons supplier, has signed up to a global arms control treaty. Photo: Simon Song
China, the world’s fifth-largest weapons supplier, has signed up to a global arms control treaty. Photo: Simon Song

China said it has begun preparations to join an international arms control treaty that the United States has threatened to abandon, while also warning Washington against deploying missiles in the Asia-Pacific region.

Speaking at the United Nations General Assembly in New York on Friday, Chinese Foreign Minister Wang Yi said that signing up to the Arms Trade Treaty (ATT) was further evidence of Beijing’s commitment to defending multilateralism.

US President Donald Trump

said in April that he intended to withdraw from the pact, which regulates the US$70 billion global trade in conventional arms.

The White House said at the time that the ATT “will only constrain responsible countries while allowing the irresponsible arms trade to continue”, as major arms exporters like Russia and China were not part of it.

Wang said on Friday that any unilateral move to leave the treaty would have a “negative impact in various areas”. He stopped short of naming the United States or its president.

China’s foreign ministry said in a statement on Saturday that it had begun the legal process of joining the treaty, adding that it attached great importance to the issues caused by the illegal sale and misuse of arms, and supported the aims of the ATT in seeking to regulate the international weapons trade.

Wang also spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region.

After withdrawing from the Intermediate-Range Nuclear Forces Treaty in August, the US said it was planning to deploy such weapons in Asia to counter any possible threat from China or Russia.
“[We] urge the country with the largest nuclear weapons to fulfil its special and prior responsibilities on nuclear disarmament,” Wang said, adding that “China will continue to participate in the international arms control process”.
Wang Yi spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region at the UN General Assembly in New York on Friday. Photo: AFP
Wang Yi spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region at the UN General Assembly in New York on Friday. Photo: AFP

According to figures released in May by the Stockholm International Peace Research Institute, the United States is the world’s largest arms exporter, supplying weapons worth 58 per cent more than those of its nearest competitor, Russia.

Together with France, Germany and China, the five nations accounted for 75 per cent of all weapons sold around the world between 2014 and last year, the institute said.

Although China is among the world’s big five arms suppliers, its sales – most of which go to Asia and Oceania – are dwarfed by those of the US, accounting for just 5.2 per cent of the 2014-18 total, compared to America’s 36 per cent.

Several major arms importers, including India, Australia, South Korea and Vietnam, refuse to buy arms from China for political reasons.

Beijing’s decision to join the ATT is in keeping with the image it has sought to present of China as a defender of multilateralism. The stance is also in sharp contrast to the US’ position under Trump, who has repeatedly scrapped multilateral trade agreements in favour of bilateral deals.

Since taking office in 2016, he has withdrawn the US from the Paris climate accord, the Iran nuclear deal and the Trans-Pacific Partnership.

Military observers said Beijing might seek to pressure on Washington to stay in the deal to try to maintain the strategic and military balance in the region.

Song Zhongping, a Hong Kong-based military affairs commentator, said Beijing might be trying to avoid misuse of conventional weapons.

“Beijing may want to press big exporters, such as the US and Russia, to join the deal because without proper regulations, the risk of illegal trade and misuse of conventional weapons could be running high,” he said.

“This could also threaten regional stability or even trigger unnecessary arms races.”

Adam Ni, a China specialist at Sydney’s Macquarie University, said the treaty would put some limits on the arms trade “but it would not mean that China would not be able to do deals. It will still be able to do [most deals]”.

Retired PLA colonel Yue Gang said the strategy could also improve China’s international reputation.

Source: SCMP

31/07/2019

China claims progress towards world’s biggest trade deal, but India remains biggest roadblock to RCEP

  • China suggests good progress made in Regional Comprehensive Economic Partnership talks after marathon 10-day negotiations in Zhengzhou
  • Indian Commerce Minister Piyush Goyal has opted to skip the upcoming high-level meetings, adding fuel to rumours that the country could be removed
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
China has claimed “positive progress” towards finalising the world’s largest free-trade agreement by the end of 2019 after hosting 10 days of talks, but insiders have suggested there was “never a chance” of concluding the deal in Zhengzhou.
The 27th round of the Regional Comprehensive Economic Partnership (RCEP) negotiations closed on Wednesday in the central Chinese city. 
The 10-day

working level conference brought over 700 negotiators from all 16 member countries to Henan province, with China keen to push through a deal which has proven extremely difficult to close.

If finalised, the agreement, which involves the 10 Asean nations, as well as China, Japan, South Korea, Australia, New Zealand, and India, would cover around one-third of the global gross domestic product, about 40 per cent of world trade and almost half the world’s population.
“This round of talks has made positive progress in various fields,” said assistant minister of commerce Li Chenggang, adding that all parties had reaffirmed the goal of concluding the deal this year. “China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible.”
China's Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP
China’s Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP

China is keen to complete a deal which would offer it a buffer against the United States in Asia, and which would allow it to champion its free trade position, while the US pursues protectionist trade policy.

The RCEP talks took place as Chinese and American trade negotiators resumed face-to-face discussions in Shanghai, which also ended on Wednesday, although there was little sign of similar progress.

As the rivalry between Beijing and Washington has intensified and bilateral trade waned, the Association of Southeast Asian Nations (Asean) overtook the US to become China’s second-largest trading partner in the first half of 2019. From January to June, the trade volume between China and the 10-member bloc reached US$291.85 billion, up by 4.2 per cent from a year ago, according to government data.

The Asean bloc is made up of Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Myanmar, Cambodia, Brunei and Laos.

China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible. Li Chenggang

RCEP talks will now move to a higher level ministerial meeting in Beijing on Friday and Saturday, but trade experts have warned that if material progress is not made, it is likely that the RCEP talks will continue into 2020, prolonging a saga which has already dragged on longer than many expected. It is the first time China has hosted the ministerial level talks.
But complicating matters is the fact that India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks, with an Indian government official saying that he has to participate in an extended parliamentary session.
India is widely viewed as the biggest roadblock to concluding RCEP, the first negotiations for which were held in May 2013 in Brunei. Delhi has allegedly opposed opening its domestic markets to tariff-free goods and services, particularly from China, and has also had issues with the rules of origin chapter of RCEP.
China is understood to be “egging on” other members to move forward without India, but this could be politically explosive, particularly for smaller Asean nations, a source familiar with talks said.
Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based lobby group, said that after the last round of negotiations in Melbourne between June 22 to July 3 – which she attended – there was “frustration” at India’s reluctance to move forward.
She suggested that in India’s absence, ministers in China could decide to move forward through a “pathfinder” agreement, which would remove India, but also potentially Australia and New Zealand.
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg

This “Asean-plus three” deal would be designed to encourage India to come on board, Elms said, but would surely not go down well in Australia and New Zealand, which have been two of the agreement’s biggest supporters.

New Zealand has had objections to the investor protections sections of RCEP, and both countries have historically been pushing for a more comprehensive deal than many members are comfortable with, since both already have free trade agreements with many of the other member nations.

However, their exclusion would be due to “an unfortunate geographical problem, which is if you’re going to kick out India, there has always been an Asean-plus three concept to start with”. Therefore it is easier to exclude Australia and New Zealand, rather than India alone, which would politically difficult.

A source close to the negotiating teams described the prospect of being cut out of the deal at this late stage as a “frustrating rumour”, adding that “as far as I know [it] has no real basis other than a scare tactic against India”.

There was “never a chance of concluding [the deal during] this round, but good progress is being made is what I understand. The key issues remain India and China”, said the source, who wished to remain anonymous.

Replacing bilateral cooperation with regional collaborations is a means of resolving the disputesTong Jiadong

However, Tong Jiadong, a professor of international trade at the Nankai University of Tianjin, said Washington’s refusal to recognise India as a developing country at the World Trade Organisation could nudge the world’s second most populous nation closer to signing RCEP.

“That might push India to the RCEP, accelerating the pace of RCEP,” Tong said, adding that ongoing trade tensions between Japan and South Korea could also be soothed by RCEP’s passage.

“Replacing bilateral cooperation with regional collaborations is a means of resolving the disputes between the two countries,” Tong said.

Although the plan was first proposed by the Southeast Asian countries, China has been playing an increasingly active role, first as a response to the now defunct US-backed Trans-Pacific Partnership (TPP), and more recently as a means of containing the impact of the trade war.

China’s vice-commerce Minister, Wang Shouwen, told delegates last week that RCEP was “the most important free trade deal in East Asia”. He called on all participants to “take full advantage of the good momentum and accelerating progress at the moment” to conclude a deal by the end of the year.

Source: SCMP

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India