The U.S.-China trade war centers on a series of retaliatory tariffs and a struggle for hegemony in strategic technologies. Together, this trade war and the Fourth Industrial Revolution, which is characterized by such innovations as artificial intelligence, big data, blockchain and robotics, is plunging the world into a period of enormous upheaval.
Growth in Asia-Pacific countries depends on trade with the United States and China, and many rely on the U.S. for their security. No country will be able to avoid the ripple effects of the U.S.-China trade war. There is no other way to protect each of these countries than to promote an Asia-Pacific regional economic partnership agreement to secure market access and preserve a liberal trade framework based on rules and the rule of law.
Until the pullout of the U.S. by the Trump administration, the Trans-Pacific Partnership was set to become the largest bulwark against these negative ripple effects. After the failure of the 12-member TPP, Japan, Vietnam and Mexico shifted gears to negotiate the establishment of a TPP 11 (officially known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP). Thailand, the Philippines, Indonesia and South Korea have all hinted that they may also join this partnership, which would further expand this bulwark protecting free trade.