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China Says US-Led IPEF is “Disguised Protectionism” That is Designed to Fuel Confrontation

The White House claims that the IPEF aims to create a resilient economy that will prevent supply chain disruptions.

May 24, 2022
China Says US-Led IPEF is “Disguised Protectionism” That is Designed to Fuel Confrontation
Chinese FM spokesperson Wang Wenbin said that the US should refrain from disrupting existing frameworks for regional cooperation.
IMAGE SOURCE: TWITTER | JOE BIDEN

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.

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.”

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 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. 

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. 

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.