As the APEC (Asia-Pacific Economic Cooperation) conference in Beijing approaches, tensions between the powers of Asian economics increase. The main issue as of now is between the United States and China, the two largest economic forces in the world. The most recent cause of tension between the two countries came over China’s desire to create a trade pact in Asia, The Free Trade Area of the Asian Pacific.
This desire for a free trade zone has been in China’s plans for the past couple of years, but now the United States is making an effort to get the reform blocked in favor of its own trade pact. The United States attempted to create the Trans-Pacific Partnership which includes 11 countries, China not being one of them. If the United States’ plan is put into place, it could cost China up to 100 billion dollars annually in exports according to estimates by the Peterson Institute. While the United States takes a hard stance against negotiations about the Free Trade Area of the Asian Pacific happening at this year’s APEC conference, it is unclear where talks will go in the future.
China and the United States continue to butt heads over the path of economic development in Asia. Both countries want to be at the head of any major changes to guarantee favorable trade conditions in one of the most important growing markets in the world. The United States has continued to prove its international presence in Asia, but the effects of US involvement in Asia on China’s growth are yet to be seen. If China wants to maintain its position as the most powerful economy in Asia, it must show that the United States is not the sole controller of Asian trade policy.
“U.S. Blocks China Trade Pact Effort.” NASDAQ.com. Dow Jones Business News, 2 Nov. 2014. Web. 02 Nov. 2014. <http://www.nasdaq.com/article/us-blocks-china-trade-pact-effort-20141102-00026?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+nasdaq%2Fauthors+(Articles+by+Author)>.
One Response to Who is in charge of Asia?
Remember that another aspect of any free trade agreement with the United States is that the agreement must also be approved by congress. This may include acrimonious debate, amendments, riders, and the stripping of the basic deal. While the U.S. has a lot of clot to throw around the Pacific, it is also hamstringed by its own institutions.