Following the launch of the United States (US)-led Indo-Pacific Economic Framework (IPEF), Chinese Foreign Ministry spokesperson Wang Wenbin said that while China celebrates “regional cooperation” to promote free trade, it opposes “attempts to create division and confrontation” through “disguised protectionism.”
During a press conference on Monday, Wang warned that Framework could “undermine the stability of the industrial chain” and “turn back the wheels of regional integration” through “geopolitical confrontation.”
He alleged that the US is “politicising, weaponising, and ideologising economic issues” and “coercing” Indo-Pacific nations to “take sides” between China and the US.
Joint Statement on Indo-Pacific Economic Framework for Prosperity.
— Sidhant Sibal (@sidhant) May 23, 2022
Negotiations on 4 key pillars
-Trade
-Supply Chains
-Clean Energy, Decarbonization, and Infrastructure
-Tax and Anti-Corruption pic.twitter.com/NRxZrW47A4
In this regard, Wang warned that the US could seek to tip the balance in its favour using illicit trade practices such as “economic decoupling, technological blockades, and industrial chain breakages” against those that do stand by its side.
Keeping this in mind, the Chinese spokesperson called for “win-win cooperation” over “net zero-sum confrontation.” He thus underscored that “All kinds of conspiracies that attempt to create camp politics, build an Asia-Pacific version of NATO and wage a new Cold War in the Asia-Pacific region are doomed to fail.”
Summit-level meeting on the launch of the Indo-Pacific Economic Framework (IPEF)https://t.co/xgCvdtlVpF pic.twitter.com/1FPpCtgT7o
— MOFA of Japan (@MofaJapan_en) May 24, 2022
Similarly, last week, Chinese Foreign Ministry spokesperson Zhao Lijian said that “any regional cooperation framework should avoid targeting third parties and undermining their interests.”
Meanwhile, on Monday, Foreign Minister Wang Yi said that the US’ Indo-Pacific strategy is “bound to fail” because it attempts to “erase the name ‘Asia Pacific’” and reversed the progress made in regional cooperation. To this end, he slammed the US for attempting to “form small cliques in the name of freedom of openness” in order to “contain China.”
These comments come as US President Joe Biden launched the IPEF alongside Australia, Brunei, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. Together, these 13 countries comprise 40% of the global GDP.
The future of the 21st century economy is going to be largely written in the Indo-Pacific. That’s why we launched the Indo-Pacific Economic Framework for Prosperity to help all of our countries’ economies grow faster and fairer. pic.twitter.com/Bihpfumlt1
— President Biden (@POTUS) May 24, 2022
The White House released a fact sheet highlighting that the four key elements of the agreement seek to create connected, resilient, clean, and fair economies.
The document highlighted that the IPEF will facilitate greater data and information sharing in order to leverage the digital economy. At the same time, it will seek to confront challenges such as online privacy and the “discriminatory and unethical use” of artificial intelligence.
Secondly, in light of the supply chain disruptions caused by the COVID-19 pandemic and over-reliance on China, the Framework outlines a plan to “better anticipate and prevent disruptions” to reduce inflationary pressures.
Thirdly, all these efforts must be guided by a commitment to clean anergy and decarbonisation, with an eye on renewable energy, carbon removal, energy efficiency standards, and reducing methane emissions.
Lastly, the agreement calls for more “effective” tax, anti-money laundering, and anti-bribery regulations and the xchange of tax information.
Took part in the programme to launch of the Indo-Pacific Economic Framework (IPEF), which will play a key role in furthering growth in the Indo-Pacific region. pic.twitter.com/IbJ372I7SX
— Narendra Modi (@narendramodi) May 23, 2022
The White House’s fact sheet outlines that US foreign investment in 2020 was recorded at $969 billion and noted that the region will only become more important over the next three decades, as it accounts for 60% of the world’s population. Countries in thee region are also directly involved in employing over three million Americans and for $900 billion worth of foreign investment in the US.
National Security Advisor Jake Sullivan revealed that the IPEF will be one of the key ‘pillars’ of the US’ economic and foreign policy going forward and will help promote a region that is “free, open, connected, resilient, and secure.”
He said the deal builds on the “momentum” generated by Biden at the recent US-ASEAN Summit in Washington. Similarly, United States Secretary of Commerce Gina Raimondo described it as the “most significant international economic engagement” the US has ever had in the Indo-Pacific.
Yesterday in Tokyo, we launched the Indo-Pacific Economic Framework for Prosperity to create a stronger, fairer, more resilient economy for families, workers, and businesses in the United States and in the Indo-Pacific region. pic.twitter.com/O3Q3vq30Pd
— President Biden (@POTUS) May 24, 2022
These comments were echoed by Indian Prime Minister (PM) Narendra Modi during his visit to Tokyo, wherein he said that the IPEF will help promote a resilient supply chain that is grounded in trust, transparency, and timeliness. He said that this would result in development, peace, and prosperity across the Indo-Pacific.
Similarly, Japanese PM Kishida welcomed the agreement as a “power demonstration” of the US’ commitment to the region. He also vowed to work with the US and ASEAN countries to pursue the goals of the IPEF.