The Trans-Pacific Partnership (TPP) was signed by ministers from its 12 member nationsin New Zealand on Thursday. It will take effect after lawmakers from each of these countries ratify it. It looks like it will only be a matter of time before the process is complete.
US President Barack Obama said in a statement that the TPP "would give the United States an advantage over other leading economies, namely China." He also noted that the"TPP allows America - and not countries like China - to write the rules of the road in the21st Century, which is especially important in a region as dynamic as the Asia-Pacific."
It is not the first time that Obama has publicly talked about China like this, which shows his narrow-mindedness as a leader of a world power.
The 12 TPP members account for some 40 percent of the world’s economy, but they only account for 25 percent of global trade volume. Analysts have been talking about its "high standards" such as the share of state-owned enterprises, criteria for environmental protection, labor rights and intellectual property rights.
Another prominent feature of the TPP is that it centers on the US, with the interests of US enterprises being given the highest priority during negotiations.
What the 21st century really looks like and what the actual rules are will be shaped by real influencing factors, including the trade vitality of emerging economies like China and diverse demands from each country, including TPP member states. These two elements are not sufficiently reflected in the TPP.
The TPP member nations have their own interests. The TPP cannot prevent them from trading with China and these countries will not pick sides between Beijing and Washington. Meanwhile, it is perhaps a trend that US influence is declining. It is not able to bind more countries under the TPP rules.
China will be better off with its own economic performance than racking its wits to compete with the TPP.