The Asahi Shimbun reports: Some observers said Beijing has decided to ease its opposition to the TPP ahead of the June 7-8 summit between President Xi Jinping, above, and U.S. President Barack Obama. China, however, would have a very difficult time obtaining approval to join the negotiations from all 12 parties to the TPP talks, including Japan. TPP negotiations are currently under way, with October set the target date for a basic TPP agreement.
“Beijing has consistently paid close attention to the development of the TPP talks and has been asking different domestic departments and industrial circles how they view the TPP,” Shen Danyang told Chinese reporters on May 30.
Beijing has so far remained cautious about joining the TPP talks for freer trade and investment. But Shen’s remark reflects rising concerns in China that the U.S.-led arrangement, with Beijing left out, could establish trade rules that serve as an instrument to contain China.
China’s growth model, which relies on being a “factory of the world” and a mass exporter of products, is already wearing off. Rising labor costs in China have given Southeast Asia an upper hand in terms of price competitiveness. China could be put at a further disadvantage if tariffs are lowered on products of Vietnam and other TPP party countries.