China pushes Pacific trade pact as US resists

By the Editorial Team · Thursday, September 17, 2026

China plans to promote a comprehensive Free Trade Area of the Asia-Pacific (FTAAP) including all 21 APEC members, aiming to reduce export costs and unify regional trade rules during the forum it hosts in November. However, U.S. opposition and ongoing geopolitical tensions complicate prospects for agreement, making the initiative's implementation uncertain despite China’s leadership efforts.

China is expected to advocate for a comprehensive trade agreement encompassing the entire Pacific Rim, including the United States, when it hosts a forum of major Asia-Pacific economies this November. The proposed Free Trade Area of the Asia-Pacific (FTAAP) seeks to unite all 21 members of the Asia-Pacific Economic Cooperation (APEC) forum under a single trade framework aimed at reducing export costs and encouraging market liberalization. However, analysts say that securing such a deal may prove difficult due to resistance from Washington and ongoing geopolitical tensions.

The concept of the FTAAP, introduced to the APEC agenda two decades ago, has largely remained dormant amid protectionist policies and rivalries among key players such as the U.S., China, and Russia. Chinese officials have signaled their intention to revitalize efforts for the trade pact, using the 20th anniversary of its introduction as an opportunity to advance coordinated regional economic and trade rules. Indonesian officials reported earlier this year that participating countries were aiming to reach an “agreement to implement” the deal at this year’s forum.

Nevertheless, U.S. opposition presents a significant obstacle. President Donald Trump’s administration has pursued a markedly protectionist trade policy, characterized by opposition to multilateral free trade agreements and the imposition of steep tariffs, particularly on Chinese imports. Trump’s stance reportedly stems from a desire to leverage tariffs for both economic and geopolitical aims, including concerns that China might exploit the pact to increase exports to the U.S. market.

“Trump basically in his first term already couldn’t accept any free trade agreements, so I don’t see any possibility to have one with APEC countries,” said Liang Yan, an economics professor at Willamette University in the U.S. He added that Trump’s approach emphasizes tariffs as an economic tool rather than traditional free trade mechanisms.

China’s Ministry of Commerce noted that APEC ministers held extensive discussions about the FTAAP in January and adopted a so-called “Beijing Roadmap” earlier this year to advance the initiative. As the 2026 APEC host, China could leverage its leadership role to push the framework forward, experts suggest.

The trade area aims to harmonize and build upon existing bilateral and multilateral free trade agreements that have multiplied after the failure of World Trade Organization talks in 2006. Notably, China is already part of several major trade agreements in the region, including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). President Xi Jinping has recently advocated for these pacts to be aligned to promote the development of the FTAAP.

Observers see China’s push for the trade area as a strategic means to counterbalance increasing trade tensions and critical rhetoric from the U.S. and Europe regarding Chinese export practices. Any such agreement could benefit Chinese exporters by lowering costs and expanding market access, reinforcing the export-driven segment of China’s economy. However, with divergent interests among member economies, the path to a binding FTAAP remains uncertain.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.