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What’s ahead if US quits TPP?

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The United States’ expected withdrawal from the Trans-Pacific Partnership may provide “great opportunities” for China to work out a wider trade agreement as a better alternative, experts said on Tuesday.

US president-elect Donald Trump released a video message on social media on Monday giving his plans for the first 100 days of his presidency. These included withdrawing from the trade deal on his first day in office as one of six immediate steps aimed at “putting America first”.

China should seize this opportunity to start the Free Trade Area of the Asia-Pacific to include countries and regions that have joined the Trans-Pacific Partnership and the 16-member Regional Comprehensive Economic Partnership, said Wang Huiyao, director of the Center for China and Globalization. The Beijing center is an independent, non-profit think tank that conducts research on world affairs, economic issues and globalization.

China should invite the US to join the China-led Asian Infrastructure Investment Bank to enter more global markets together, Wang said.

Even though the US was absent, the 11 other Trans-Pacific Partnership member countries, including Australia, Canada, Chile, Malaysia and Mexico, discussed in Lima, Peru, the possibility of keeping the trade deal. Japan’s lower house of parliament approved the deal earlier this month.

“Their moves show that the 11 countries that signed a basic agreement on the (TPP) in October are keen to facilitate free trade moves,” said Wang, who added that China should talk with Japan and South Korea to promote the Free Trade Area of the Asia-Pacific during the China-Japan-South Korea leaders’ meeting in Tokyo next month.

“Since the FTAAP is able to combine the TPP and RCEP and benefit regional trade development, it can put an end to the economic fragmentation in the Asia-Pacific region that undermines economic integration,” said Tu Xinquan, a professor at the University of…

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China

Government subsidies don’t boost Chinese firms’ productivity

China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.

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East Asia Forum

Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.

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Companies

Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division

OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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Companies

Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman

A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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