The world needs more economic alliances than security ones: Analyst

Countries should engage in economic cooperation rather than defense and security, because that would make the country “dangerous,” the president of the Center for China and Globalization said on Tuesday.

Doing so would also reduce recession, which would lead to global economic growth. The US, for example, may consider joining – or “re-joining” – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Henry Wang said at the SALT iConnections conference in Singapore.

“The US is the source of power of globalization and [has] they always lead in globalization,” Wang said.

“It was sad to see the US withdraw [Trans-Pacific Partnership, which] … they set high standards for global trade, including the digital economy, as well as trade liberalization and financial regulation.”

Wang added that there should be more economic and less security cooperation such as AUKUS, the Five Eyes and the Quadrilateral Security Dialogue, a non-political cooperation.

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The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is an international trade agreement signed in 2018 that was established after the United States, under the Trump administration, withdrew from the Trans-Pacific Partnership.

Claudio Reyes Afp | Getty Images

“I believe that the US is now stable in the middle of this age, we can go to economic cooperation, to the world instead of having a lot of security, military, defense that will make us dangerous,” said Wang.

The CPTPP was formerly known as the TPP, which was part of the United States’ economic and strategic pivot to Asia.

Former US President Donald Trump pulled the US out of the trade deal in 2017, after criticizing the end of US political protectionism.

The TPP changed to the CPTPP after some members of the alliance joined. It is now one of the largest forums in the world, attracting applicants from China.

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The US has not indicated that it wants to rejoin the CPTPP. Instead, it established its own non-commercial trade network with the Asia-Pacific, the Indo-Pacific Economic Framework.

Echoing Wang’s point, Nicolas Aguzin, CEO of the Hong Kong stock exchange HKEX, said at the same session that globalization has produced many benefits, including bringing East and West closer to each other.

“I mean, it kept the lowest prices in the world in many areas; we had productivity,” he said, adding that he doubts that deglobalization will be real, due to the great connection of chains around the world.

We welcome everyone to join the CPTPP, including the United States, says the Canadian minister

With new powers emerging, conflicts are bound to arise in this era of globalization, Aguzin said.

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“Asia, as a region, in the next 10 years, we represent almost half of what the world produces. I mean you will have a stone age, because it is a big change. There is a big change of power and influence. from the West to the East,” he said.

‘Olympic style’ competition

Economic cooperation and “Olympic” competition between the US and China would be better than conflict, Wang said.

Wang said his comments at the Chinese Communist Party meeting in Beijing show that Chinese policymakers are willing to “open up,” indicating that Beijing is still interested in promoting trade with more countries.

The selection of new cabinet members from China’s developing regions, such as Guangdong and Jiangsu, shows that Beijing has its eyes on more development, private businesses and investment from multinational companies, according to Wang.

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