: In India’s absence, will China be biggest beneficiary of RCEP? #IndiaNEWS #Business By Mahua VenkateshNew Delhi, Nov 19 | Will the Regional Comprehensive Economic Partnership (RCEP) the mega trade

In India’s absence, will China be biggest beneficiary of RCEP? #IndiaNEWS #Business
By Mahua VenkateshNew Delhi, Nov 19 | Will the Regional Comprehensive Economic Partnership (RCEP) the mega trade agreement signed between 15 countries sans India deliver? Or will it wither like many other trade pacts including the South Asian Free Trade Area (Safta) and the once-hyped US-led Trans-Pacific Partnership (TPP)? Experts said that the initial stage of the bloc could be marked with internal conflict. Only time will tell whether or not the bloc succeeds, said an analyst.
But even as the jury is out on the future of RCEP, New Delhis exit from the trade pact has helped China retain the leadership position in the regional trade process. It has underscored the urgent need for India to aggressively focus on boosting the manufacturing sector to increase competitiveness.
By exiting the RCEP, we have handed over the leadership position to China. We should have remained within the RCEP framework, Sanjaya Baru, economist and director for geo-economics and strategy at the International Institute of Strategic Studies told Indianarrative. com
We should have taken a larger view on this issue, we need to remain engaged with the Asian economy, Baru said, adding that the future market that will drive growth is in Asia.
An UNCTAD report said that the trade agreement could push revival of post-Covid economy while boosting intra-regional trade and investment links. The report noted that the agreement will provide the much required framework for further regional co-operation.
Will it drive growth for China or is it just a boost for Chinese President Xi Jinping?
Economists opined that Indias exit would mean that Beijing has a more expanded role in the trade pact. This would be a morale booster for China, especially at a time when it has faced flak for its military and territorial aggression and the handling of the coronavirus pandemic.
Citing concerns over the competitiveness of Chinese products, India has been actively trying to cut economic ties with China, and once declared its intention to stay out of all international economic agreements involving China. However, the signing of the RCEP may have left India with less space to carry on with its plan of decoupling from China, the Global Times wrote.
Chinas economy has been facing challenges. Concerns over the efficacy of Xis mega infrastructure project under the Belt and Road Initiative (BRI) have come up in the last few months. The entire process will now be dominated by China but it is a fact that there are internal conflicts within the bloc and it has to be seen how this (bloc) evolves in the next few years. Beijing will benefit but at the same time we need to remember that South Korea and Vietnam are equally competitive, if not more competitive than China, EYs chief economic adviser D.

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