China warming to US-led Trans-Pacific Partnership: report

Softening its stand, China is adopting a more welcoming attitude toward US-led Trans-Pacific Partnership agreement which is now being negotiated by 12 countries, official media reported today.
"We are very happy to see that those TPP members can reach a consensus - because we think the TPP will be a possible approach for promoting Asia-Pacific economic integration," Zhang Jianping, director of the department of international economic cooperation at the Institute for International Economic Research, was quoted as saying by state-run China Daily today.
His remarks come as the Obama administration tries to pressure the House of Representatives to approve a renewal of trade promotion authority, which is necessary for the US executive branch to negotiate the TPP and other free-trade agreements.

The bill was cleared by the Senate on May 21, but Obama is meeting stiff resistance from members of his Democratic Party in the House of Representatives.
The Trans-Pacific Partnership (TPP) is a proposed regional regulatory and investment treaty. China is not a party to the TPP, but Obama says it might join later.
While the TPP might be a possible approach to the Free Trade Area of the Asia Pacific (FTAAP), Zhang said that countries such as China and Indonesia may not feel so comfortable with the agreement.

China has not been included in the US-led negotiations for the TPP and tried to promote the FTAPP as a counter measure.

The TPP's high standards and strict regulations to some extent may surpass the development stage for some developing economies in the region, Zhang told a seminar.
"That's why now we are making efforts to promote" the Regional Comprehensive Economic Partnership, he said, adding that developing economies may prefer the RCEP approach.
Zhang said he believes the third possible track to the Free Trade Area of the Asia Pacific will be for the TPP and RCEP to work together to form a new deal.
China actively promoted a road map for the FTAAP when it hosted the Asia-Pacific Economic Cooperation summit in November.

Acknowledging that China needs to reform and open up further to meet the TPP's high standards, Zhang said China is making an effort to promote and create a regional trade network.