Asia-Pacific FTA faces challenges at APEC: analysts

China may encounter more challenges when trying to promote the anticipated Free Trade Area of the Asia-Pacific (FTAAP) at the upcoming Asia-Pacific Economic Cooperation (APEC) summit, the Global Times learned on Monday. [Special coverage]

Due to the US' Asian-pivot strategy, interest from the US in FTAAP has been declining and the lukewarm support of US, which initiated the free-trade zone, may largely slow down the launching process, analysts say.

APEC members hope to reach a consensus on launching the FTAAP process during the meeting in Beijing, Chinese Foreign Minister Wang Yi said at the Lanting Forum on October 29. However, the Wall Street Journal quoted insiders as saying on Saturday the US reportedly blocked China's efforts to begin negotiations on FTAAP and Beijing has dropped two provisions from the draft of an APEC communiqué to be released at the end of the leaders' forum.

The report went on to say that the communiqué would no longer call for an FTAAP "feasibility study" and no deadline to reach an agreement would be set. China had wanted 2025 as the deadline.

China demonstrated its responsibility as a major power in the Asia-Pacific region by upholding FTAAP, while the US' lukewarm support showed its concern over China's rising strategic strength, according to Zhang Jingwei, a research fellow with the Chahar Institute.

"It is natural that the US would show less enthusiasm in pushing forward FTAAP whose establishment will inevitably offset the impact of Trans-Pacific Partnership (TPP), a trade pact including Japan, the world's third largest economy," Bai Ming, a research fellow with the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. Bai said that the US proposed the free-trade area idea in 2006 so as to stimulate economic recovery.

But US support has declined now that its economy is recovering, and the FTAAP overlaps with the TPP.

"Washington does not wish to see Beijing's participation in any substantial geopolitical or economic cooperation organization in the Asia-Pacific region," added Zhang.

All 12 nations under the TPP are important trade partners with China. The TPP without China would only increase trade disputes, Zhang noted. "Any multilateral system without China will prove unsound," he added.