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China and Japan vie for control of Asia trade deal

The contest to shape a massive Asian trade pact has stepped up a gear as China and Japan push different visions of a deal that would cover almost half the world’s population and a third of its economic output.

China is pushing for a rapid conclusion to the Regional Comprehensive Economic Partnership, with a “low-quality” deal mainly focused on lowering tariffs between the Association of Southeast Asian Nations and its neighbours.

But officials in Japan and Asean insist RCEP should not be Chinese-led. Beijing wants to cast itself as a defender of global free trade for political reasons, they say, after the US quit another huge deal, the Trans-Pacific Partnership. Tokyo and Canberra want a high-quality RCEP deal covering services and investment — half hoping this will bring the US back to the TPP table.

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