Wednesday, April 19, 2017
China should prepare for an RCEP without India
ANBOUND
After the US President Donald Trump abandoned the TPP, the importance and strategic significance of China-led RCEP is on the rise. However, in addition to the bargaining of the normal terms of trade between its members, RCEP negotiations also have to face a hesitating partner, namely India. India hesitates for three reasons; fear of the influx of Chinese goods into India which would endanger the local manufacturing industry; different degrees of trade deficit with other RECP member countries; local businesses cannot compete with foreign companies. For China, an RCEP containing India is certainly the best choice, but it should also consider an RCEP without India as an option. Although without India RCEP would be less ideal, the progress still needs to be accelerated. Using RCEP to secure cooperation with ASEAN, Japan, Korea and Australia is undoubtedly very important for China.