China Getting Panicky Over U.S.-led Pacific Trade Deal

[Fred Sanders]

HONG KONG (MarketWatch) — The Trans-Pacific Partnership (TPP) trade deal may be controversial in the U.S., but in China it appears to be the object of great worry and, in some respects, seems to be driving policy in Beijing.

The TPP agreement, strongly supported by President Barack Obama, would create the world’s largest free-trade zone, stretching across half the globe. The treaty itself, as well as the “fast-track” negotiating authority sought by the Obama Administration, has come under criticism by some U.S. lawmakers, as well as various labor and business groups concerned about everything from wages to national security.

But in Beijing, the TPP is frequently seen as an “anyone but China” trade club that threatens the Chinese economy as a whole and even the country’s very future.

http://www.marketwatch.com/story/china-very-worried-about-us-led-pacific-trade-deal-2015-05-21

[Romulox]

1. LOL. nt

[yallerdawg]

2. Setting high bars.

The U.S. “has been vigorously promoting and building” the treaty, setting high bars for service trade, intellectual property, labor rules and environmental protection, the State Council (China’s cabinet) said.

Implementation of the TPP will “further impair China’s price advantage in the exports of industrial products and affect Chinese companies’ expansion” abroad, it said.

[djean111]

3. Oooh! Oooh! I should be FOR it, then, right? Wrong.

How about this - take the five or so chapters out of the TPP that actually deal with TRADE, and make it a separate agreement.

Boy, first Rush Limbaugh used as some sort of stick, and now this. I think I can see the bottom of the barrel......

[HassleCat]

4. Obama Might Be Right

OK, we need to be skeptical of media accounts of how China feels about the TPP, but there is some reason to think the Chinese would like to see us pass on TPP and create a power vacuum they could fill. This is Obama's argument. And we should view that with skepticism, too, because it's only one factor among many. The TPP, at least what we know about it, does not seem to be a good deal for American workers, particularly the few unionized workers we have left. We should not just jump in on TPP because, "If we don't, China will." That reminds me of a jury that finds someone guilty because, "If he didn't kill her, who did?" Is it possible to negotiate a TPP that doesn't screw US workers? I don't know. Obama seems pretty confident, but we've heard similar things before. And the Republicans, with the exception of the far right wingers, are generally supportive, and that's a clue that TPP would be a gift to big business.

[pampango]

5. China has opposed it from the beginning. Labor rights and environmental standards do not exactly

play into their strong suit when it comes to international trade.

... the U.S.-centered TPP negotiations have put China under considerable pressure. Though it is open to joining TPP negotiations, given its domestic industrial structure China would find it difficult to accept some of the issues under negotiation. Issues such as state-owned enterprises or labor and environmental standards would impose very high costs on China’s domestic industries.

http://thediplomat.com/2014/06/chinas-fta-strategy/

... interests of the United States hidden behind "high standards" undermine the negotiation. The United States, by using "high standard" as a disguise and taking advantage of its technology and market edges, tries to maximize its interests through negotiations.

At the very beginning of the negotiation, the United States reminded other members that the U.S. Congress would not accept a TPP without strong labor and environmental measures. Obviously, the United States aims to lower the comparative advantages of developing countries so as to create more job opportunities for itself.

http://english.peopledaily.com.cn/90777/8113289.html

[Thinkingabout]

6. I like to see China worry about TTP, they have been manipulating their currency with NAFTA,

this just may be a good replacement for NAFTA. Still waiting to see what the final agreement before I make a final judgment .

[moondust]

7. Isn't China trading with Central and South America?

Should the U.S. be panicking about those Chinese "trade clubs" in the Western Hemisphere?

Maybe this is just MarketWatch trying to convince people that what's bad for China is good for the U.S.