Communist China Accelerates Indo-Pacific Economic Framework In Response to Supply Chain Removal

According to a Japanese media report on Sep 9th, the US, Japan and 12 other countries have held a two-day minister-level meeting in Los Angeles since Sep 8th and paved a way forward for the Indo-Pacific Economic Framework for Prosperity (IPEF). The Washington led initiative aims to establish trade standards, facilitate regional supply chains, and counterbalance Communist China’s growing influence.

Organizers said they hoped the first face-to-face IPEF meeting would start an official negotiation focusing on the advancement of four critical frameworks including the improvement of supply chain, the expansion of clean energy, crackdown on tax avoidance and corruption and the promotion of digital trade. The framework provides a certain degree of flexibility, allowing each member state to join one or more pillars on their own merits.

At present, the IPEF member states engaging in negotiations include the US, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.

Emily Benson, an international trade expert at the Washington-based Center for Strategic and International Studies (CSIS), said each member involved in IPEF faced the risk of supply chain disruptions, meaning all participants have strong desires to minimize the unwanted frictions. Benson expected that the negotiations would accelerate and be planned to conclude within 18 months after the first meeting at ministerial level.