The president of the Center for China and Globalization said on Tuesday that countries should form more economic alliances than security and defense alliances, as these alliances can make the world a more dangerous”.
Doing so will also avoid a slide toward de-globalization that could stifle economic growth around the world. For example, the US could consider joining – or “re-joining” – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Henry Wang said at the SALT iConnections conference in Singapore.
“America is the vibe globalization and [has] always at the forefront of globalization,” Wang said.
“It’s a pity to see the US pull out [Trans-Pacific Partnership, which] … sets higher standards for global trade, including the digital economy, as well as trade liberalization and investment facilitation.”
Wang added that there should be more economic alliances and less security alliances such as AUKUS, Five Eyes and the Quadrilateral Security Dialogue, an informal strategic alliance.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a multilateral trade agreement signed in 2018 that was formed after the United States, under the Trump administration, withdrew from the Partnership Agreement. trans-Pacific.
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“I hope that the United States has now settled this midterm, we can move towards economic, global alliances instead of having too many security, military, and defense alliances that will make us worse and worse. more dangerous,” said Mr.
CPTPP, formerly known as TPP, is part of the US strategic and economic pivot to Asia.
Former US President Donald Trump withdrew the US from the trade agreement in 2017, after the agreement faced criticism from protectionists in US politics.
The TPP has since evolved into the CPTPP after the other members of the pact continued with it. It is now one of the world’s largest trade blocs, attracting applicants like China.
The US has not shown its desire to rejoin the CPTPP. Instead, it offers its own non-commercial Network of relations with Asia-Pacific, Indo-Pacific Economic Framework.
Concurring with Wang’s view, Nicolas Aguzin, CEO of Hong Kong stock exchange HKEX, also said the globalization of trade has created many benefits, including bringing East and West together. closer together.
“I mean, it’s kept prices very low around the world in many areas; we’ve been productive,” he said, adding that he doubts de-globalization will become a reality. due to the complex interconnectedness of global supply chains.
With new powers emerging, tensions are bound to arise at this time of globalization, Aguzin said.
“Asia, as a region, in the next 10 years, we represent about half of the world’s output. I mean you’re going to have some tough times, because that’s a big deal. There’s been a big shift in power and influence from West to East,” he said.
Therefore, economic alliances and “Olympic-style” healthy competition between the US and China would be better than confrontation, Wang added.
Wang said notes from a meeting of the Chinese Communist Party in Beijing show that Chinese policymakers are keen to “open up”, which shows that Beijing still wants to promote trade and democracy. multilateral.
According to Wang, the appointment of new Cabinet members from developed regions in China, such as Guangdong and Jiangsu, shows that Beijing is eyeing more development, private enterprises. and investments from multinational companies.