Enter the dragon
It’s the season for mega trade deals. The ink has only just dried on the Trans-Pacific Partnership but negotiators are completing round 10 of discussions on the even bigger Regional Comprehensive Economic Partnership, which includes all 10 Asean nations, plus six of their biggest trade partners: Australia, China, India, Japan, New Zealand and South Korea. A deadline has been set for the end of the year and China is most eager to make headway but analysts see major obstacles. “As China climbs up the global value chain and develops its hi-tech sectors, it wants to protect its domestic industry from cheaper South Korean and Japanese imports,” says Mansoo Jee, research fellow at the Korea Institute of Finance. “China has to open up more markets to speed up the process but it is refusing to so far.”