6/04/2013

Taking One Step Ahead


China showed its willingness for taking examination of liberal economy. A spokesman of Ministry of Commerce, Shen Dan-yang, announced that China was considering joining the negotiation of Trans-Pacific Partnership. Having set this free trade framework as a litmus test for China, the United States is welcoming China’s positive response. Seeing this issue only from the viewpoint of the impact on domestic economy and politics, Japan can still not understand the meaning of the message from China.

“China is going to analyze the merit and demerit, and the possibility, of joining TPP,” told Shen at the press conference with Chinese media on Thursday. He revealed governmental activity of interviewing to some organizations and business sector about TPP. “China is willing to exchange information with parties in TPP,” Shen also remarked.

China has been reluctant to join TPP framework that required high standard of free trade. But in the process of negotiation, US has been leading the discussion for the rulemaking. China has supposedly been frustrated with the possibility of establishment of a containment framework around it.

Chinese leader, Xi Jinping, is going to meet with US President Obama later this week. It is possible for China to have tried to show their preparedness for the meeting by pretending to set an agenda. It is, however, actually not easy for China to adjust its economy to TPP standard. Willingness to join TPP should be regarded as nothing more than the defense against economic containment.

Setting high hurdle in front of China, US is watching how China is dealing with it. If China refused TPP, US is going to employ actual containment policy toward China. If China joined the framework, US will seriously negotiate over business in free trade concept. It is a win-win game for US.

It is Japan that does not understand the true meaning of TPP. “It does not seem that the possibility of China to join TPP,” said an officer of the Ministry of Economics, Trade and Industry, according to a news report of Asahi Shimbun. What Japan should do is not underestimating Chinese ambition to cast its power to Asian market, but taking actual and effective measures to deal with Chinese economic openness as well as protecting Japanese citizens who will suffer from the big wave of free trade agreement. Having too much pride on the past reputation of economic giant, METI has been fallen short of ability to understand the realism of international politics. LDP and DPJ are too worried of election to tackle the problem. Nobody so far is responsible for TPP in Japan.

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