Answer

Trans-Pacific Partnership

Research indicates that there are different significant reasons that resulted in the greatest trade conflict between the United States and China’s economies. These reasons are associated with the intentions of the US to reduce the deficit of bilateral trade and increase the number of job opportunities and limit access of Chinese industries to American technologies (Swenson & Woo, 2019). The Trans-Pacific Partnership (TPP) is described as the first state agreement that incorporates comprehensive policies on digital trade which will guarantee the flow of data across borders, manage consumer privacy protection, and restrict rules that force investors to shift their servers and other associated resources from the host country.

The trade war between China and the US continues the debates surrounding the TPP. The Trans-Pacific Partnership was formed in 2016. It was designed as a “China-proof,” with rigid responsibilities necessitating openness and trade emancipation (Lukin, 2019). As the USA’s trade representatives advocate, Chinese engagement can only be acknowledged when China meets TPP’s requirements. However, China is far from considering this aspect. Studies indicate that the US is not keeping China out of the TPP, instead, China is not ready to become a member (Swenson & Woo, 2019). China’s engagement in the US-designed TPP is often considered as a chance hit. However, the Trans-Pacific Partnership’s requirements conflict with existing Chinese practice.

Lukin (2019) indicates that China will be forced to acknowledge unprecedented domestic changes to adhere to the disciplines of state-owned businesses, information flows and localization limitations, labor responsibilities, and endowments. Nonetheless, when the former President, Donald Trump, declined US’s participation in the Trans -Pacific Partnership, he presented a new opportunity for China to participate in the TPP and enhance Asian economic integration by redesigning the terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP). Recent studies indicate that China has an enthusiastic and open perspective towards becoming a member of the CPTTP (Lukin, 2019). Experts advocate that Beijing is actively determined to become a member of the CPTTP to enhance China’s trade relationships.

Conclusively, from China’s standpoint, the decision by the US government to decline the TPP presents an opportunity for China to negotiate the terms of entry and solidify its position as the supreme economic state in Asia.