China Applies to Join the CPTPP

On September 16, 2021, China officially submitted its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signaling its intent to deepen economic ties in the Asia-Pacific region. The CPTPP is a trade agreement among eleven countries in the Pacific Rim, established after the original Trans-Pacific Partnership was abandoned by the United States in 2017. Current member countries include Japan, Canada, Australia, Mexico, Singapore, and several others.

Background

The CPTPP is one of the world’s largest free-trade areas, which reduces tariffs and aims to facilitate trade across multiple sectors among member nations. By seeking membership, China aims to integrate further into the multilateral trade system and to assert its economic leadership, especially as global tensions over trade policies increase.

Context and Motivations

1. Economic Strategy: China’s move to join the pact aligns with its broader strategy to diversify its trade relations and strengthen economic partnerships amid ongoing trade tensions with the United States. With over three-quarters of China’s imports coming from CPTPP members, entry into the agreement could bolster China’s trade influence.

2. Regional Influence: Joining the CPTPP would enable China to deepen its economic integration with key Asia-Pacific countries, potentially altering existing economic alliances and trade routes. China’s accession could influence the trade policies and economic strategies of current member nations.

3. Global Trade Dynamics: If successful, China’s inclusion could shift the landscape of global trade, as these nations account for a substantial portion of global GDP. It may also encourage other nations to consider joining or adjusting their trade strategies relative to the Asia-Pacific nexus.

Challenges and Considerations

China’s entry into the CPTPP is, however, conditional upon the approval of the existing member countries, who must unanimously agree to new memberships. Some nations within the CPTPP have expressed concerns regarding China’s trade practices and regulatory frameworks, which could complicate negotiations.

Significance and Implications

China’s application to the CPTPP is a strategic move that highlights its ambition to play a more prominent role in shaping regional and global trade networks. Membership could enhance China’s economic leverage while promoting a more interconnected and competitive Asia-Pacific region. As negotiations unfold, the response from CPTPP member states will be pivotal in determining the future structure and influence of the trade pact.