Page 10 - The Indian EYE 062422

OPINION JUNE 24, 2022 | The Indian Eye 10

A Cause of Anxiety in the Region:

China’s Response to Indo-Pacific

Economic Framework

Anxious about the threat posed by IPEF to China’s regional economic clout, Chinese leaders and
analysts have called for enhancing regional economic cooperation. Beijing’s pushback against

Washington’s IPEF strategy is likely to result in an intense zero-sum geo-economic competition

MAYURI BANERJEE tend that the economic pact, if na-led cooperative mechanisms like icy experts opine that China is better
implemented, is unlikely to imme- Regional Comprehensive Economic integrated with the region than the
he Indo-Pacific Economic diately affect Chinese economic Programme (RCEP) and Belt and US. For instance, many South East
Framework (IPEF), launched interests. Highlighting existing Chi- Road Initiative (BRI), Chinese pol- Asian industries are dependent on
Tin Tokyo on 23 May 2022, is China for raw materials which are
being touted by the US as a mech- processed for export to the US or
anism to counter China’s regional European Union (EU).
economic influence. The four policy Further, China’s economic co-
pillars of the initiative include digi- operation with the region is also
tal trade, building of resilient supply deepening. Besides trade with RCEP
chains, fulfilment of clean energy countries, China’s trade with ASE-
commitments and implementation of AN bloc totalled US$ 212 billion in
fair-trade rules with effective taxation the first quarter of 2022. Due to Chi-
and elimination of corruption. na’s large domestic market, South
Reports cite US officials as stat- Korea and Japan could also be in-
ing that the initiative will present the clined to strengthen economic coop-
Indo-Pacific countries “an alternative eration with Beijing under RCEP.
to China’s approach and strengthen As regards possibility of China’s
political and economic ties with part- economic isolation from the regional
ner countries”. China has responded economic framework, analysts assert
strongly to the initiative, calling it an that China cannot be ignored due
‘economic NATO’ aimed at stoking to its economic influence. Chinese
regional divisions. Beijing has also Foreign Minister Wang Yi, in a press
moved rapidly to initiate count- briefing on 22 May, claimed that Chi-
er-moves against the IPEF. Prime Minister Narendra Modi, US President Joe Biden, and na has emerged as the largest trading
Japanese Prime Minister Fumio Kishida at the Indo-Pacific Economic Framework for partner of most of the countries in
BETTER INTEGRATION Prosperity (IPEF) event, in Tokyo recently . (ANI Photo/Narendra Modi Twitter) the region and those trying to isolate
Chinese analyses of IPEF con- Continued at next page... >>

www.TheIndianEYE.com