US reveals 13-nation economic pact, Indo-Pacific Economic Framework (IPEF) to counter China's impact

Posted on May 30, 2022   |  

• The nations involved in the IPEF include Australia, India, Japan, South Korea, and New Zealand, along with 7 Southeast Asian countries, which constitute 40% of global gross domestic product. 
• The framework is aimed to increase strength, sustainability, inclusiveness, economic growth, fairness, and competitiveness for economies.
• Under the framework, participants will be required to make “high-standard commitments" in at least one of four areas, which are trade, supply chains, clean energy, and fairness.
• China is the biggest trading partner for most governments due to which many countries are reluctant to sign up for any agreement that excludes China. 
• The Southeast Asian countries, which are Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam demanded to keep the framework open to China.
• China has frequently blamed the US for trying to stop its rise by forming economic and military alliances in the region.
• The nations in the IPEF represent $34.7 trillion in global output compared with $31.7 trillion for the Trans-Pacific Partnership (TPP) members.
• The US didn’t invite Taiwan to join the framework, despite over 50 senators urging him to include the government in Taipei.