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Opinion | America needs a clear trade policy amid China’s CPTPP challenge
- If the US does not improve opportunities, economic activity will flow to markets that are easier to access
- For the US to truly build back better, Washington must build more with the rest of the world or the advantages of international trade will be lost
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China made new strides in regional trade last week when Beijing announced that it intends to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Agreement (CPTPP).
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That news barely made headlines in the United States. When asked, the White House deflected concerns that Washington was falling behind its main economic rival.
That’s a real problem for the Biden administration, which after nine months in office has failed to articulate a clear trade policy. Domestic politics might still be pushing for a more isolationist stance akin to the “Build Back Better” plan, with a focus on American workers and production, but the realities of trade agreements cannot be ignored.
The world’s second-largest economy is heading towards membership in one of the world’s largest trade agreements. Meanwhile, the US is nowhere to be found.
The economics of influence require engagement with the rest of the world. No amount of diplomatic speechmaking is going to replace commercial power that underpins political relations.
If current trends continue, countries throughout Asia will become more dependent on China’s markets, not less. No one can blame them for pursuing their own economic interests over the ideals of a country half a world away.
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