Chinese response to Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership

• Published in: Review of international affairs 2016, Vol.LXVII (1161), p.123-141
• Main Authors: Antevski, Miroslav, Jelisavac Trošić, Sanja
• Format: Article
• Language: English
• Subjects: Economy
• ISSN: 0486-6096

Among other things that were changed in the last decades, we would like to point out China’s dynamic economic growth and re-strengthening Russian influence in international relations. These changes jeopardized the USA position as the only world power. The European Union is the most successful and largest economic integration in the world but is falling behind the USA in political influence. The USA recognized growing Chinese economy as a major threat to its world dominance and is trying to limit its spread. Among others, the USA is conducting trade negotiations which will cover, if they are successful, two large regions in the world- Atlantic and Pacific region. A series of trade negotiations are being carried out, mostly in secret, between the EU and USA in order to form a bi-lateral trade agreement - Transatlantic Trade and Investment Partnership (TTIP). On the other side, the USA is ending negotiations on the Trans-Pacific Partnership (TPP), a trade agreement among Pacific Rim countries. What is indicative is that China is excluded from these negotiations. Chinese response to this USA moves in the international field was a complex one. China is focusing in several directions and levels and building connections with other emerging economies. It is important that China’s projects are financially very well-funded. The most important and biggest project is the revival of the Silk Road. The New Silk Road should uplift Eurasian economy, include large bilateral investment arrangements and produce a significant expansion of FDI. In this paper, we will present arguments to suggest that the Chinese response could be a successful one.