US anti-China digital trade deal seen as ‘dead in the water’ for Joe Biden in Asia

The proposed deal could set out standards for the digital economy, including rules on the use of data, trade facilitation and electronic customs arrangements

China’s largest corporations like Alibaba Group Holding and Tencent Holdings have in recent years led a wave of investment into Southeast Asia

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While the White House has not made a decision on whether to pursue a deal, people familiar with the plans told Bloomberg this week it could set out standards for the digital economy, including rules on the use of data, trade facilitation and electronic customs arrangements. Photo: AFP

Published: 12:00am, 16 Jul 2021Updated: 2:48am, 16 Jul 2021

As the United States mulls a digital trade agreement to counter China, it faces a key problem as many countries in Asia do not want to join any deal seen as challenging Beijing, whose technology giants are deeply entrenched in the region.

China’s largest corporations like Alibaba Group Holding and Tencent Holdings have in recent years led a wave of investment into Southeast Asia, which has more than half a billion people rapidly migrating online. Alibaba is the owner of the South China Morning Post.

Governments in the region have largely resisted US calls in recent years to avoid Huawei Technologies Co. for 5G networks even as they look to America as a counterweight to China on security issues.

While the White House has not made a decision on whether to pursue a deal, people familiar with the plans told Bloomberg this week it could set out standards for the digital economy, including rules on the use of data, trade facilitation and electronic customs arrangements.

It would potentially include many of the countries in the Asia-Pacific trade deal that Donald Trump exited from in 2017.

If this becomes seen as or is in fact a method to contain China, then, in my view, it’s dead in the water

Deborah Elms

Yet even the 11 countries in that deal – now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)– say it remains open to all applicants.