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[This chapter examines how China’s free trade agreements (FTAs) and Asia's FTA network more broadly provide challenges and opportunities for EU trade policy in the region. Trade relations in Asia are shaped first by geopolitics, namely the rise of China and its ‘assertiveness’ in pursuing projects such as the Belt and Road Initiative (BRI). Analysis of trade links between the EU and China shows that EU countries’ imports of Chinese goods outstrips EU exports to China. In institution-building, the EU and China's FTAs use much of the same language in drafting their trade agreements; however, EU agreements cover more issue areas and with stronger legal obligations than do China's agreements. Moving forward, the most important challenges for EU trade policy in Asia will be to ensure market access for European firms navigating the two mega-FTAs, the Regional Comprehensive Economic Partnership (RCEP) agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Among the EU's FTA partners, Japan, Singapore, and Vietnam are pivotal as members of both mega-FTAs. Finally, the successful conclusion of the EU-China Investment Treaty further challenges the EU to balance the pursuit of its economic interests with its broader strategic relationship with the United States.]
Published: Feb 5, 2022
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