China calm over TPP isolation as it pursues deals

Beijing. A new US-led Pacific trade pact that pointedly excludes China could see it lose influence and key export markets, but observers say the web of bilateral deals Beijing has forged is enough to maintain its global clout.

The signing last week of the Trans-Pacific Partnership (TPP) brings together 12 nations that account for about 40 percent of the global economy and would mark the biggest liberalisation of world trade in more than a decade.

And while all signatories championed the benefits it will bring and its importance in kickstarting sluggish global growth, the agreement also provides a strategic bulwark to China’s growing power -- both economically and militarily.

In heralding the agreement US President Barack Obama said: “We can’t let countries like China write the rules of the global economy.” And Chinese state-media this week labelled it “a massive economic bloc accused of combating China”.

However, Chinese officials have softened their stance towards the pact after initially giving it a frosty reception.

Beijing’s commerce ministry this week called it “important” and said China is “open to any mechanism that follows the rules of the World Trade Organization and can boost the economic integration of the Asia-Pacific”.

The remarks have prompted speculation that China could actually apply to join, although most analysts consider that unlikely, citing the high level of state control over the economy.

The deal comes just months after Washington and Tokyo were left isolated when most of their Western allies agreed to join China’s much-vaunted Asian infrastructure bank. (AFP)