It is hard to think of anything more stupid. And China’s trade hard-liners are surely laughing in their sleeves.
“When Trump did away with TPP, all your allies’ confidence in the U.S. collapsed,” a senior Hong Kong official told me.
“After America stopped TPP, everyone is now looking to China,” added Jonathan Koon-shum Choi, chairman of the Chinese General Chamber of Commerce, Hong Kong. “But China is very smart — just keeping its mouth shut.”
Beijing is now quietly encouraging everyone in the neighborhood to join the Regional Comprehensive Economic Partnership, China’s free-trade competitor to TPP, which, unlike TPP, lacks environmental or labor standards; China’s Asian Infrastructure Investment Bank; and its One Belt, One Road development project.
Carrie Lam, the new chief executive of Hong Kong, told me that TPP countries like Australia are quickly reaching out to Hong Kong to forge closer and freer trade ties, now that the Americans have pulled TPP down. It’s a “pity” that the Americans are leaving, she said, but “this will give our country this opportunity to lead.” China is not just looking for growth, she added, but also for “influence.”
Just to remind: TPP was a free-trade agreement that the Obama team forged with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
It was not only the largest free-trade agreement in history, it was the best ever for U.S. workers, closing loopholes Nafta had left open. TPP included restrictions on foreign state-owned enterprises that dumped subsidized products into our markets, intellectual property protections for rising U.S. technologies — like free access for all cloud computing services — but also anti-human-trafficking provisions that prohibited turning guest workers into slave labor, a ban on trafficking in endangered wildlife parts, a requirement that signatories permit their workers…