The president of the Center for China and Globalization said on Tuesday that countries should build economic alliances rather than security and defense ones because that could make the world “more dangerous”.
Doing so would avoid the slide of de-globalization that could hold back economic development around the world. For example, the United States may consider joining or “rejoining” the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Henry Wang said at the SALT iConnections conference in Singapore.
“The United States is a climate globalization and [has] Globalization has always been at the forefront,” Wang said.
“It was very sad to see it leave the United States [Trans-Pacific Partnership, which] … set high 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 fewer security alliances, such as informal strategic alliances such as AUKUS, the Five Eyes and the Quadrilateral Security Dialogue.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a multilateral trade agreement signed in 2018 after the United States withdrew from the Trans-Pacific Partnership under the Trump administration.
Claudio Reyes | Afp | Getty Images
“I hope the United States can now resolve this interim period. I hope we can move from having multiple security, military, and defense alliances to economic and global alliances,” Wang said.
The CPTPP, formerly known as the TPP, was part of the United States’ economic and strategic focus in Asia.
Former US President Donald Trump pulled the US out of the trade deal in 2017 after being criticized for the protectionist end of the US political spectrum.
The TPP was transformed into the CPP after the other members of the treaty continued to operate under it. It is now one of the largest trading blocs in the world, attracting applicants such as China.
The United States has not indicated its intention to rejoin the CPTPP. Instead, it created a separate network of non-trade relations with the Asia-Pacific region and the Indo-Pacific economic system.
Nicholas Aguzin, CEO of Hong Kong’s stock exchange HKEX, echoed Wang’s point in the same speech, saying that the globalization of trade has brought many benefits, including bringing the West and East closer together.
“It’s kept prices very low in many places around the world; we’ve been productive,” he said, adding that he doubted de-globalization would be a reality given the interconnectedness of the world’s supply chains.
As new powers emerge, tensions are inevitable in this era of globalization, Aguzin said.
“Over the next 10 years, as a continent and a region, we’re going to account for about half of the world’s gross domestic product. I mean, you’re going to have some tough times because it’s a big change. There’s a big shift in power and influence. From the West to the East. ” he said.
“Olympic style” competition
Therefore, economic ties and healthy “Olympic-style” competition between the United States and China would be better than confrontation, Wang added.
Wang said the minutes of the Chinese Communist Party meeting in Beijing showed an “openness” among Chinese policymakers, indicating that Beijing remains eager to promote trade and multilateralism.
The appointment of new cabinet members from China’s developed regions such as Guangdong and Jiangsu reflects Beijing’s focus on development and investment by private businesses and multinational companies, Wang said.