After years of negotiations, a deal was struck on October 5 to conclude the 12-member Trans-Pacific Partnership (TPP), which does not include China.

As reported by The Wall Street Journal, Japan views the agreement as key to its economic and security goals as China expands its influence in the region, especially in Southeast Asia, where Japan has long been a major investor and aid donor.

“We will help promote regional growth, prosperity and stability by deepening economic ties with countries that share values such as freedom, democracy, basic human rights, and rules of law,” Prime Minister Shinzo Abe said recently.

According to some Chinese analysts, the United States deliberately sought to form the TPP in order to block China. “Will China join? Does the TPP led by the US intend to contain China?” asked Fudan University professor Feng Wei on his verified Weibo social media account.

The agreement will lower barriers to the exchange of goods and services among members, which in the Asia-Pacific region also includes Australia, New Zealand, Singapore, Malaysia, Vietnam and Brunei. Even though China was invited to join the trade group, Beijing has been reluctant to comply with many of the required rules, such as opening up the financial sector, reported The Wall Street Journal.

By not being a founding member, experts say, China misses the opportunity to help shape an important pillar of the global trading system – a priority for China’s President Xi Jinping.

“The key is whether China’s domestic reforms will be enough or sufficient. If they are not, it will have to follow the US and lose its chance with the TPP to help make the rules,” said Shi Yinhong, director of the Center on American Studies at Renmin University.

http://neurope.eu/article/tpp-deal-concluded-without-china/