Japan and the United States reported significant progress after marathon talks that continued until early Tuesday morning on a proposed Pacific Rim free trade pact that's seen as crucial to counter China's growing economic influence.
Negotiation sources say Tokyo and Washington are rushing to conclude the 12-nation Trans-Pacific Partnership initiative, especially after more than 50 countries, including U.S. allies in Europe, recently applied to join the China-led Asian Infrastructure Investment Bank.
Both the United States and Japan remain cautious about the new development bank, which could end up rivaling existing institutions led by the two countries, calling on China to meet global standards on governance and debt sustainability.