How will RCEP affect the world?

Jun 4, 2013
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Albuquerque, NM
RCEP was signed recently without the US or India involved. How will this affect the world economy? Who does this benefit? Who does it hurt?


 

Clarence Worley

leaner than mandy...
Nov 19, 2018
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Siberia
If only the states had a strong leader that was trying to undo the mistakes of Bill Clinton

all the American haters gonna get a shock from a Chinese world order
 
Jul 25, 2012
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From what I understand they're saying that's about 1/3 of the world economy. Is that correct?
Sounds about right.

Not sure how much this deal will change the present course, though, beyond the symbolic. China is a steadily growing consumer market -on set to overtake the the second biggest ,the European Union, in the next ten year- and already the biggest exporter and manufacturer in the world.

It would be a long more significant if India would join RCEP (which was China's fervent wish for years). India, with its 1.4 billion population, is clearly a huge potential market.

India has for most of its post-war history has followed socialist policies ,which include foreign companies being put in the highest tax bracket. and high tariffs on foreign goods. These measures were in place to protect India's inefficient ,uncompetitive domestic industries from foreign competition. The fear on part of India was that RCEP would remove barriers ,that have so far prevented Chinese companies from flooding the Indian market with their goods and killing India's manufacturing. Besides, Besides, India's economic development has been warped for a poor country ,with its services sector - such as call centres- being more successful that its manufacturing. RCEP would probably make stillborn any hope of India building a manufacturing base, underpinning development and general prosperity.

I think the recent border skirmish between India and China in which a few Indian soldiers were beaten to death by PLA soldiers , was partly a way for the Chinese to punish and make an example of India's political leadership ,for pulling out of the RCEP.
 
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