China is looking into joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), formed after the US pullout, in order to hedge against the consequences of the trade war with the United States, local media reported on Thursday, citing a source close to Beijing.
BEIJING (Pakistan Point News / Sputnik - 11th October, 2018) China is looking into joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), formed after the US pullout, in order to hedge against the consequences of the trade war with the United States, local media reported on Thursday, citing a source close to Beijing.
Even though the Chinese government has not officially indicated interest in joining CPTTP or applied for membership, the attitude toward the deal, which is also known as TPP11, has shifted in the government, with officials currently considering the option, the source told the South China Morning Post newspaper.
The trade war between China and the United States escalated in June when US President Donald Trump announced that $50 billion worth of Chinese goods would be subject to 25 percent tariffs, with Beijing responding in kind. The latest round of the US tariffs came into effect in September, which deteriorated the situation even further.
The TPP was signed in 2016 and originally brought together 12 Pacific Rim nations, including the United States. However, Trump, who repeatedly criticized TPP during his election campaign, withdrew the country from the deal in 2017, arguing that poorly negotiated trade agreements were harmful to the US job market.
Following the US withdrawal, the 11 remaining nations continued their efforts to create a free trade zone. On March 8, the foreign ministers of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam signed the revised version of the TPP.
The leaders hope that the deal will come into force by the end of 2018; this can happen only 60 days after at least six countries ratify the document. As of now, only three states have ratified the deal.
