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Explainer | What is IPEF, and will it help the US counter China’s influence in the Asia-Pacific?

  • The Indo-Pacific Economic Framework is widely seen as an effort by the US to counter China’s influence in the Asia-Pacific region
  • It seeks to establish trade rules, covering areas from data protection to carbon emissions, but it does not offer incentives like greater market access to the US

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IPEF is seen as reflecting US ambitions to solidify ties with key economies in the Asia-Pacific. Photo: Yik Yeung-man
Kim Bo-eun

The rivalry between China and the United States has escalated in recent years and is set to intensify with the launch of multiple trade groupings in Asia.

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The latest to be negotiated is the Indo-Pacific Economic Framework (IPEF), a US-led initiative which is widely seen as an effort to counter China’s influence in the Asia-Pacific.

The economic potential of the region is considered massive, with a young population and growing middle class. But stronger ties with countries in Asia go beyond economic benefits and involve geopolitical security dynamics.

What is IPEF?

IPEF is seen as reflecting US ambitions to solidify ties with key economies in the Asia-Pacific by building a supply chain that excludes China.

In October last year, President Joe Biden said at the East Asia Summit: “The US will explore with partners the development of an Indo-Pacific economic framework that will define our shared objectives around trade facilitation, standards for the digital economy and technology, supply chain resiliency, decarbonisation and clean energy, infrastructure, worker standards, and other areas of shared interest.”

US Secretary of Commerce Gina Raimondo and Trade Representative Katherine Tai visited countries in the Asia-Pacific in the following months to secure their participation in the framework.

Details have yet to be made public, but IPEF differs from a traditional trade bloc based on free-trade agreements. It seeks to establish trade rules, covering areas from data protection to cutting carbon emissions. Member countries can opt to participate in parts of the framework.

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