From a Follower to a Rule-Shaper: Augmenting China’s FTA Policy
From a Follower to a Rule-Shaper: Augmenting China’s FTA Policy

Author(s): Justyna Szczudlik-Tatar
Subject(s): Supranational / Global Economy, Governance, Economic policy, International relations/trade
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: People’s Republic of China; active economic diplomacy; free trade agreements; China-EU economic cooperation;
Summary/Abstract: In Xi Jinping’s term, China has pursued active economic diplomacy. One of its manifestations has been free trade agreements. Apart from economic rationales—trade and investment creation effects— political considerations have played a role as well. FTAs build China’s leadership and establish its status as a rule-maker. Beijing’s concerns about two key trade agreements, TPP and TTIP, which will introduce new norms to the global economy, might be incentives for China to step up with ambitious agreements to avoid being bypassed. As China–EU FTA talks are not on the table, the Union should concentrate on an investment treaty with Beijing and engage China in multilateral WTO negotiations to address the EU’s demands.

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