GARLICIN
CHINA'S GAMEPLAN RCEP majorly promoted by China can be considered as its gameplan to save its manufacturing industries. Several Indian industrial players red-flagged the Chinese agenda of using RCEP as a connecting network to flood the Indian market. India offers the biggest free trade access market to the Chinese companies that are feeling the pinch of US-China trade war with Donald Trump administration. China needs greater access to Indian market to sustain because a failure to find a market will have a cascading effect on Chinese economy and its global ambitions. PM Modi just refused to be a willing dumping ground of the Chinese trade Imperialism. India wanted to be included into the RCEP pact as a shield against significant import surge from RCEP countries. Some experts believe that India's adverse trade balance is the reason behind the walkout. China has already covered most of the markets under RCEP and changed the equation with the ASEAN countries after inking ACFTA (ASEAN China Free Trade Agreement) in 2010. For now, China has taken the lead in fi n a l i z i n g t h e RC E P to c o n s o l i d a te
economic integration in South Asia. China now looks set to dominate the IndoPacific, which may not be good news for India. Economic isolation can never be an option for India. India will have to prepare itself and make a strategy that brings together the economic and political aspects. Co-existence of RCEP with CPTPP can bring larger gains for countries participating in both the projects. Together they stand to promote trade liberalization, further enriching the region's importance to economic growth and global trade. Joining CPTPP is likely to disrupt China's economic reform which prevents them to join the agreement. China would have to conduct a rapid transformation of its economy to meet CPTPP's requirements which would be in stark contrast with its current practices. China's hesitation in joining the CPTPP risks reducing the competitiveness of its exports dueto trade-diversion effect which occurs due to tariff agreements causing imports to shift tohigher cost countries. Although Australia and Chile invited China, it has shown little interest in joining theagreement. Other parties might have concerns over China joining the negotiations as itwould require long negotiations.