ASEAN masses behind China as it pushes world’s biggest free trade pact
RCEP offers Xi leverage and may boost global trade, but several economies have issues
Southeast Asian leaders look determined to make progress on the world’s largest commercial pact, the China-led Regional Comprehensive Economic Partnership during the two-day Association of Southeast Asian Nations summit which gets underway in Bangkok, Thailand, on Saturday.
The RCEP encompasses all 10 ASEAN economies, plus India, Japan, South Korea, Australia and New Zealand. It is widely seen as a mechanism for China to draft the rules of Asia-Pacific trade, following what many believe will be an eventual US retreat from the region.
Forward movement on RCEP at the ASEAN summit would be a boon for a Beijing that is engaged in an increasingly bruising trade war with Washington. The cross-Pacific barrages are also causing collateral impact on regional economies, whose supply chains are closely inter-twined with China’s.
In fact, the timing of the ASEAN summit could not be better for Chinese President Xi Jinping, who is expected to meet US President Donald Trump at the G20 summit in Osaka, Japan, next weekend.
Xi has just returned from a two-day state visit to North Korean leader Kim Jong Un in Pyongyang. Virtually no substantive information has leaked out of that visit, indicating that Xi was garnering talking points and possible solutions to offer Trump, who is almost certainly keen to be appraised of Kim’s latest views on denuclearization.
That, together with momentum on RCEP at ASEAN, could offer Xi some negotiating leverage with Trump in Osaka, where the two are expected to discuss their tariff war.
Other issues set to be discussed at by ASEAN leaders at the summit, which is being chaired by Thailand, include disputes in the tense South China Sea, Myanmar’s persecution of Rohingya Muslims and maritime plastic pollution.
China pushes trade panacea; ASEAN responds
ASEAN leaders appear keen to hasten the signing of the China-drafted RCEP.
Shortly after his election, Trump pulled the US from a competing free-trade deal, the Trans-Pacific Partnership (TPP) — which would have been the world’s largest trade deal — slamming it as an American “job killer.” Tokyo has since taken up the slack, promoting the TPP regionally and globally, and there are hopes that Washington may rejoin.
In the meantime, Beijing is pushing hard on RCEP.
While tit-for-tat tariffs between the world’s biggest two economies have seen some manufacturers flee China to safer competitors such as Vietnam, economists say the big picture for global growth is bleak. That outlook that will impact ASEAN.
In that context, “RCEP is key to increasing trade volume,” Thai government spokesman Werachon Sukhondhapatipak told reporters.
“The faster it gets implemented the better,” Martin M. Andanar, Philippines Communications Secretary, told reporters. “Free trade is definitely what we need here in this region.”
He added that the US-China trade row has resulted in “the entire world catching a cold.”
Still, all is not plain sailing; progress on the deal has stuttered in recent months. India fears cheap Chinese goods could flood its massive consumer market, while Australia and New Zealand have raised concerns over RCEP’s lack of labor and environmental safeguards.
Serious horse trading is anticipated later in the year, when trade envoys from all of the potential signatory countries assemble, but the deal is expected to win some tailwinds in Bangkok.
Rohingya rights and rubbish
Trade is not the only item on the agenda for ASEAN leaders.
Malaysian leader Mahathir Mohamad on Friday raised the prospect of a joust with Myanmar over the Rohingya, the Muslim minority driven in massive numbers into Bangladesh by waves of concussive violence. “We hope something can be done to stop the oppression,” he said.
Myanmar’s Aung San Suu Kyi will attend the summit.
ASEAN is also set to agree on a statement to “prevent and significantly reduce” marine debris, including plastic, across the region, according to a draft text seen by AFP.
Let's see:Huawei is seen by the West as the single most important company in terms of helping China rise, which is why it was targeted first in the technowar.... the hopes of Steve Bannon, Pompeous, and many of the other PNAC Hawks is that by destroying or severly containing Huawei, the US will reverse the tide on China's tech rise, hence influencing China's grand strategy of the BRI, and of MIC2025 and by extension also the plans to replace the Petrodollar hegemony with the PetroYuan.
Let's see:
The US takes measures vs Huawai =>
1) destroying or severely containing the company =>
2) reverse tide on China's tech rise =>
3) hamper BRI =>
4) foil plans re currency.
Well well. The US can do all these things with a "surgical strike"! Seems absolutely terrifying, but if you examine this scheme, there's a lot of holes.
Take the first step of this sequence, for example. Huawei is not exactly dead yet. It's handset business is affected, but I see no indications that 5G rollout has been hampered in any serious way. Its cloud services should be completely unaffected, and only part of it's product line in servers will be impacted. But Huawei is a resilient company and it is already entering new lines of business to compensate. The talent, organization, and good morale of the company will continue to serve China well.
But suppose Huawei was actually destroyed, as you say. The second step in the sequence says China' tech rise is reversed. There's no logic in this at all. The number of researchers in china won't drop. China has more people involved in R&D than the US already for several years, the the gap is only growing. I believe the university system is expanding again, after reaching a plateau about a decade ago. If Huawei is the top in 5G, the Pentagon says the Chinese military is beginning to field some technologies which the US does not have. Moreover, China is spawning tons of tech startups, and the country in 2018 surpassed the US in the amount of Venture Capital utilized for the first time. Huawei has been the big story in 2019, but in the last couple of years, it was all about BAT (Baidu, Alibaba, Tencent), mobile payments, sharing economy, self driving cars, etc. Huawei has played a good role, but China's tech rise is not the result of one company. Rather, Huawei is the result of China's tech rise.
The third step in the sequence says that China's loss of momentum in "tech rise" will hamper the BRI. I'm not sure why this should follow either. Cellular networks built with Nokia or Ericsson equipment can be used to develop the connectivity China and everybody else wants. And of course, none of this will affect the fiber optic technology for internet, or the pipelines, railroads, roads and power plants. GE and Siemens are being used for the latter in many cases, and it turns out "Western" watts can turn the lights on just as well. Perhaps there will be a bit less Chinese money for the initiative, but political attitudes and interference are playing a much bigger role in holding things back now, and not lack of funds, equipment, or materials. Moreover, the BRI is taking on a life of it's own, as quite a few players see benefits. This includes not only recipients of projects, buy players taking part in building them (Russia, UAE, Switzerland, Japan, to name a few).
I won't bother with the fourth step, as it's too far into fictionland, but I think it's clear the consequences of this "surgical strike" will not be the ones intended, assuming @Arkboy is right about American reasoning. None of these hopes will be realized.
That Deepmind CEO has been spending way too much time with Pleiadians. But even if his propaganda comes true, China will use its time machine to steal it. And in the end, Vanuatu will conquer the planet.Although history is useful and history tells us that no empire or superpoer rules forever, we are at a critical junction point in that this time it may very well be different this time. Imagine if "time travel" was possible, the country that mastered "time travel" first would undoubtable be able to remain on top forever, because it could literally make its own history! Likewise I feel the same applies to AI. Google Deepmind CEO long said that we need to solve artificial intelligence and then use AI to help solve everything else (all the other problems in existence)... he went on to state that AI (the AGI type of super AI) will be mankinds last invention, because all other inventions after that will be done by the AI itself, and man wouldn't be able to complete. So, its fair to say that the country that masters AI first and dominants super AI will be able to be top dog forever.... Bannon, Pompeo, Trump all understand the criticality of winning this new tech race, and the US using bans to gain a few strategic years on China may be all it takes in terms of the difference between 1st place and 2nd place. In today's winner takes all zero sum game world, there is really only first place.
I love that analogy, but why just take what you can carry? Organize that break-in! Bring the truck LOL!Oh well.
I hope the US will have enough "resolve" to pass that "IP invalidation" law.
Just what China wants. It'll be like a supermarket breakin during a mass riot. Take whatever you can carry.
Oh well.
I hope the US will have enough "resolve" to pass that "IP invalidation" law.
Just what China wants. It'll be like a supermarket breakin during a mass riot. Take whatever you can carry.
But the West can do it and the non-West can't cuz West good, rest bad, would be their implied argument.