TPP can spur China to make better rules

By Ding Gang Source:Global Times Published: 2015-10-14 23:13:02

Illustration: Liu Rui/GT



The Trans-Pacific Partnership (TPP) Agreement brings two biggest challenges to China in terms of governance standards: trade rules and labor rights, of which the latter is harder to tackle.

To take just one example, all the 12 TPP member states agreed to comply with the principle of collective bargaining affirmed in the International Labour Organization (ILO) 1998 Declaration on Fundamental Principles and Rights at Work. The All-China Federation of Trade Unions has also been working to implement a collective bargaining system nationwide in recent years.

A collective bargaining system is of critical importance to the transformation of developing countries, which provides greater protection for workers. Implementing such a system will improve social stability.

On this point, the TPP to some extent has moved ahead of China. It is likely to provide a reference point for China by implementing the practice in countries like Vietnam that has a similar political system to China.

There are also other provisions in the TPP that will help improve laborers' rights. Therefore, we shouldn't simply view the TPP as a strategic move to shut China out of a trade group dominated by the US. China also needs to make strides in protecting its workers, though it has to put it forward based on its national conditions.

Chinese society and workers now demand workers' rights be improved, and this is a laudable sign of progress. The difficulties lie in how to meet high criteria in terms of labor standards, intellectual property protection and environmental protection and satisfy the demand of China's sustainable development while at the same time avoiding slowing the speed of development.

Since the reform and opening-up, China has been opening itself to the world and following international standards and practices, as it is yet unable to make or alter international rules. Now Washington has upgraded its standards, and Beijing has no choice but to follow the new rules.

This is not a question of which side bows to the other, but a matter of direction. The direction the TPP is advancing also tallies with the demand of Chinese workers in protecting their legitimate rights, and it also provides an important reference for understanding the US' global role.

Can China create criteria that will be binding upon the entire world? I believe it will gradually have the ability to do so. For instance, the establishment of the Asian Infrastructure Investment Bank is such an endeavor and there will be more in the future.

China in the future will join the ever-wider Pacific trade system. This is an inevitable step for it to manage trade competition and increase investment transparency by applying intellectual property rights and fundamental labor protections statutes.

The TPP is not a new trade system that totally excludes China. Even if there is some competition, it's not a tug of war where both sides flex their muscles. Instead, both sides will be measured as to who can do better in sustainable development.

Therefore, if we view the TPP as an opportunity to push China's reforms, it will be conducive to improving the China-US relationship. 

As a matter of fact, it has been proved in the past three decades that opening-up is a useful method for deepening reforms.

The Chinese government has reiterated that its main task is to satisfy the increasing demand of the people for a better cultural and spiritual life. Higher wage and better treatment are a part of the demand. China will eventually find solutions to these problems.

Since the reform and opening-up, China has gradually integrated with the world. The consumption-driven Chinese economic transformation will create more growth for the world and the US economy. In the end, China will be on an equal footing with the US and become a rule-maker, jointly raising the level and quality of global growth.

The author is a senior editor with People's Daily. He is now stationed in Brazil. dinggang@globaltimes.com.cn. Follow him on Twitter @dinggangchina

Posted in: Columnists, Ding Gang, Viewpoint

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