Zhou Xiaoming

Opinion | China joining the CPTPP will benefit everyone, so why won’t the West let it?

China joining the trade pact would be a catalyst for economic reforms that address developed countries’ complaints while offering member nations easy access to the world’s largest consumer market

With Beijing showing readiness to take the steps needed to meet CPTPP standards, geopolitics seems to be the major obstacle

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Zhou Xiaoming

Published: 1:00am, 12 Aug 2023Updated: 2:17am, 12 Aug 2023

The decision by members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-July not to take action on China’s application to join the trade pact, was disappointing and took many in China by surprise.

The CPTPP operates on the principle of consensus. The existing members must give unanimous support before any other country is allowed into the trading club. It was clear before the meeting that members were divided in their positions on China’s application. While Malaysia, Singapore and Vietnam have backed China’s participation in the free-trade zone, Japan, Australia and Canada have expressed reservations.

China filed for CPTPP membership in September 2021, just months after the UK, which was welcomed into the fold at last month’s meeting. The lack of progress on China’s application means that the decision on its bid will be put on hold until the next meeting, which will only take place next year.

For nearly two years, China has made serious efforts to woo CPTPP members and engage them in informal discussions. It has identified the reforms it would need to undertake to meet the CPTPP standards, and it is starting pilot programmes for CPTPP rules and standards in Hainan and some of its free-trade zones.

China’s CPTPP membership is thought to be conducive to the development of a regulatory regime consistent with prevailing rules and norms in international trade and investment. Its accession to the World Trade Organization (WTO) in 2001 prompted the drafting, amendment or abolition of more than 2,300 measures at the central government level. Bringing its rules in line with those of the CPTPP, as required for its accession, would address many of the complaints of developed countries.

For CPTPP members, China’s accession means easier access to the world’s largest consumer market and a global manufacturing hub where quality products at competitive prices are readily available. It also means gaining an advantageous position in sharing the opportunities of the country’s sustainable development.