Regional Comprehensive Economic Partnership (RCEP) had come into existence on Sunday the 15th November 2020. It is a trade block, a mega one at that, consisting of 10 prominent South Asian countries and China, Australia, New Zealand, Japan & South Korea.
Analysts say that RECP is the largest trade agreement today, demoting the US-Mexico-Canada and the European Union trade agreements to lower places. RECP members account for 30% of the global GDP, giving it a strong muscle
When the discussions were underway, India was part of it but last year, it withdrew; the reason being China’s prominence, with which India was undergoing challenges at the multiple levels. Now, as an emotional decision, it could be termed as an economic loss but whether India has some economic or global trade plans up its sleeve to counter it, is still not known. The RCEP has announced that if India wants to join it, it has to apply again. Will India? Doubtful
China indeed had become one hell of a global power (and, a bully!), very strategic, at the same time, very opaque one at that. It was expected of China to have major post Covid economic challenges. But by astute, clever, deft moves, it is ensuring long term survivability and sustenance.
Nations have many things to learn...
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