China’s plans for trade bloc not a pipe dream

I refer to Mr Simon Tay and Ms Gina Guo’s commentary “China’s pursuit of its Asia-Pacific dream” (Nov 19).

I am optimistic that Chinese President Xi Jinping’s dream of a Free Trade Area of the Asia Pacific (FTAAP) will not be a pipe dream, although it may take a long time for the 21-member Asia-Pacific Economic Cooperation (APEC) to realise it.

The politically-motivated Trans-Pacific Partnership (TPP), led by the United States to reinforce its economic position with its allies, could run parallel with the FTAAP, which would represent 2.8 billion people and more than half of the world’s gross domestic product.

China may not have been an attractive market 30 years ago, but it has since risen to become the world’s second-largest economy, opening up a market of 1.3 billion to the global community.

The FTAAP is purely an economic consideration and would be a significant bloc similar to the European Economic Area and the North American Free Trade Agreement.

China’s goal is to prevent fragmentation growing in the region by galvanising leaders to share its vision of closer economic integration. A more inclusive trade pact would improve the quality of life for a larger population.

The present ASEAN-China Free Trade Area is a good example to follow. Already, China is working with APEC members in the areas of transport, telecommunications and energy to enhance cooperation.

During the recent summit meetings, followed by his visits to Australia and New Zealand, Mr Xi iterated the importance of mutual respect and trust as equal partners. He urged countries to co-operate in a new Silk Road and Maritime Silk Road.

The FTAAP would not go against existing bilateral trade arrangements, nor would it undermine the TPP in terms of economic integration. Wise political leaders should share China’s aspiration to work towards the same Asia-Pacific dream.