Here’s How Trump Killing The TPP Benefits China

January 24, 2017   |   Darius Shahtahmasebi

(ANTIMEDIA) — Newly inaugurated President Donald Trump has done plenty to provoke all manner of conflict with China. He has made it clear that he will not be pressured into accepting their One-China policy, nor will he accept their territorial claims in the South China Sea. For some commentators, his position is incredibly confusing given his support and admiration for Vladimir Putin, a staunch ally of China.

More confusing is Trump’s decision to dismantle the Trans-Pacific Partnership agreement (TPP), as this is seen to be a huge victory for China. China was notably left out of discussions and negotiations of the TPP even though China is the world’s second-biggest economy, making up 30 percent of the world’s GDP.

The TPP was, therefore, an integral part of Obama’s China containment strategy (known as the “pivot to Asia”). When the TPP was finalized in 2015, Obama stated: “TPP allows America – and not countries like China – to write the rules of the road in the 21st Century.”

Given his strongman approach to China, why would Trump not support such an initiative?

The TPP was negotiated in secret, behind closed doors with some 600 corporate representatives involved. The deal was seen as largely benefiting the corporate elite, particularly because of its investor-state dispute clause, which allows corporations to sue governments for loss of profits they haven’t even acquired yet — something that has already been attempted in a number of countries. Supposedly, the Trump administration does care about the impact of such an agreement on the American working class, as there was no guarantee that corporations would spend their increased profits on hiring or wages.

However, now that Trump has effectively killed the agreement, according to CNN, Chinese leaders are already angling to take the United States’ place in the agreement and expand their influence in the region notes:

“Obama had pitched the TPP as a way to counter China’s growing influence by imposing US-backed labor, environmental and patent protections. China is unlikely to seek or support such protections in its own trade negotiations — allowing those countries to produce cheaper goods, but with fewer worker protections.”

But how well will the other individual parties welcome China’s emerging role in their agreement? Apparently, quite well. Forbes stated that countries like Australia are already signaling they would support a China-led regional trade deal.

The Washington Post commented:

“Economists have warned that many of Trump’s proposals — including suggestions that he would impose blanket double-digit tariffs on goods from Mexico and China — could backfire on the American economy by causing prices to rise or igniting a trade war. And business groups such as the U.S. Chamber of Commerce had lobbied extensively for passage of TPP, touting the deal as an engine of job growth and an important check on China’s growing ambitions.” [emphasis added]

However, President Trump has made it clear that the TPP is only dead in its current form, and he will negotiate free trade agreements with the individual parties to the TPP, instead. What those agreements will entail remains to be seen; perhaps each agreement will pose an even more direct attack on China’s position in the global economy and force the individual countries to rely more on the United States than the Asian market. If that is the case, China’s ability to capitalize on Trump’s withdrawal from the TPP may prove harder than anticipated.

As such, amid concerns of what’s to come, China has cautioned itself not to gloat following Trump’s withdrawal from the TPP. That being said, New Zealand has said it is not going to “sit around and wait” for a free trade agreement with the Trump administration and is looking to keep the TPP alive with the original members. Neighboring Australia has stated that Indonesia, South Korea, and China are still capable of joining.

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