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Asia form world's biggest trade bloc, a China-backed group excluding U.S. [UPDATED]

Asia form world's biggest trade bloc, a China-backed group excluding U.S. [UPDATED]

14 Sept 12:30 Key points summarised by AI
  • Fifteen Asia-Pacific economies officially formed the Regional Comprehensive Economic Partnership (RCEP), establishing the world's largest free trade bloc.
  • The China-backed RCEP deal notably excludes the United States, which had withdrawn from a rival Asia-Pacific trade grouping (TPP) under the Trump administration.
  • RCEP is poised to cement China's economic influence in Southeast Asia, Japan, and Korea, positioning Beijing to significantly shape the region's trade rules.
  • Comprising 30% of the global economy and population, the bloc aims to progressively lower tariffs across its member nations, fostering deeper regional integration.
  • The U.S. remains absent from both RCEP and the successor to the TPP, leaving the world's largest economy out of two major trade groups in the fastest-growing global region.
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