China pushes pacific trade pact as US resists

China is set to push for a massive trade pact encompassing the Pacific Rim during its November forum of major Asia-Pacific economies, though securing a deal may prove challenging due to the United States' likely resistance, according to experts. Even if the agreement remains unattainable, China hopes to garner goodwill by proposing measures to reduce export costs, say analysts.

"It should be high on the agenda given Donald Trump's anti-international trade stance and his frequent tariff threats," said Chen Zhiwu, a finance professor at the University of Hong Kong. The proposed Free Trade Area of the Asia-Pacific (FTAAP) would bind China, the US, Russia, and numerous Asian manufacturing giants. Introduced to the Apec agenda 20 years ago, the FTAAP has languished due to geopolitical tensions and protectionist policies, though China has now seized on its 20th anniversary as an opportunity to promote regional economic and trade rules.

Officials from China aim to secure an "agreement to implement" the deal at this year's Apec forum, though the consensus-driven nature of the group makes success uncertain. US President Donald Trump has consistently resisted free trade agreements, instead using tariffs as economic leverage and geopolitical tools. Trump's opposition to multilateral trade deals, including his threat to slap tariffs exceeding 100% on Chinese imports, could scuttle the Apec pact.

China's Ministry of Commerce reported that Apec ministers discussed the trade area in January and adopted a "Beijing road map" to achieve it. With China set to host the Apec forum in 2026, it may leverage this opportunity to push for the FTAAP, as proposed by Chinese President Xi Jinping. The pact could help align two-way and multi-country free trade agreements and stimulate the development of the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.