United States President-elect Donald Trump’s pledge to dump or renegotiate the Trans-Pacific Partnership (TPP) on his first day in office is a gift for the Chinese in their drive to control the world economy.
China is now positioning itself as free trade’s new champion and seizing economic leadership of the Pacific Rim.
Under President Barack Obama the TPP was sold as a way to counter China’s rise, and its possible demise is now viewed in China as a US retreat from the region.
China was excluded from the TPP, which would have accounted for 40 per cent of world trade.
It’s been referred to as ‘the dodgiest deal you’ve never heard of’ and now, Fact Check answers your questions on the TPP.
Chinese President Xi Jinping has seized the opportunity at the APEC summit last weekend and pushed his own free trade vision, the Regional Comprehensive Economic Partnership (RCEP).
It involves 16 countries including Australia and Japan, but excludes America.
Mr Xi is pushing to make it bigger and is leaving the door open to Latin American countries like Peru who are keen to benefit from the growing economies of Asia.
The move would be a massive boost for China’s plans to shift the existing US-dominated world economic order.
With billions of dollars on offer, China is trying to supplant the World Bank and the IMF with its Asia Infrastructure Investment Bank.