Post-Trump America plunged headlong into restoration work. Almost the entire legacy of the former president is subject to restoration and renewal. US relations with the rest of the world, again in the context of the Trump legacy, is not an exception at all and is also subject to strict revision. This process is complex, patience, attention and time. The last in the Biden administration more than enough not much at all, as we would like. Trump's political and economic failures in China and the APR as a whole have already come back to haunt Washington in a number of areas., and further delay in restoring old relations threatens to lose any influence in the region.
Beijing is actively taking advantage of the situation, continues to strengthen its position in world trade. Under the auspices of the PRC, largest trade coalition is being created in the Asia-Pacific region - the Comprehensive Regional Economic Partnership (ВРЭП), which Beijing has been working hard on for almost ten years. The partnership covers 15 countries with population 2,2 billion people and total GDP 26,2 trillion dollars. And this is a very bad signal for the USA..
Agreement on the establishment of RCEP was signed 10 countries, members of the Association of Southeast Asian Nations – Vietnam, Thailand, Myanmar, Laos, Cambodia, Malaysia, Singapore, Indonesia, Brunei and the Philippines, and 5 partner countries – China, Japan, South Korea, Australia and New Zealand.
The new agreement aims to create the largest free trade area and provides for a large-scale reduction in duties on goods for the participating countries. Experts already call RCEP the first step towards the emergence of an analogue of the European Union in Asia. Expected, what the partnership will add 186 billion dollars to the size of the world economy and 0,2 percent to GDP of its participants. Despite the global trend towards de-globalization, Asia continues to move towards economic liberalization.
Historic deal brings long-term rivals together for the first time - China, Japan and South Korea. So far, policy differences have hindered them to lower tariffs bilaterally., however, as part of a wide group, countries were able to overcome them. But not everyone in the region likes China's rise: Last year, fearing an influx of cheap Chinese goods, India withdrew from the negotiating table on RCEP.
New trade partnership will significantly complicate competition in the region for US companies. China originally initiated RCEP as a counterbalance to the Trans-Pacific Partnership (TTP), the key role in which the United States played. However, after Trump's exit from the TPP, the States were left out of both trade groups.. And now, when Asia sets its own trade rules, The United States risks losing the right to vote in the territory, covering one third of the world economy.