China in APEC: A view from New Zealand

China joined APEC in 1991, at the same time as Chinese Taipei and Hong Kong, China. The inclusion of China, Chinese Taipei and Hong Kong, China as separate members of APEC, while maintaining adherence to the “One China” principle, has been a learning experience for all APEC members. Recognition of the “One China” principle is reflected in certain protocols that are observed within APEC for this purpose.

China’s membership of APEC played a part in facilitating its entry into the newly-established WTO. As APEC members began to implement their Bogor Goals commitments from the mid-1990s China made some significant tariff reductions that were understood within APEC as a “down payment” on its eventual commitments as a WTO member.

APEC is an economic forum in which the members come together to develop consensus on steps to advance open trade and regional economic integration, drawing on the expertise and experiences of the members. The steps agreed are expressed as voluntary, non-binding commitments in declarations by APEC ministers and economic leaders. The voluntary nature of APEC commitments is viewed by some observers as a weakness, and by others as a strength, in that it allows agreement to develop out of a free exchange of experiences, research findings, and priorities without the need for unproductive adversarial negotiations and legalistic dispute procedures. The commitments nevertheless emerge from processes of rigorous analysis and debate.

In earlier years the commitments were set out by members in Individual Action Plans, and progress toward implementing the Action Plans was regularly reviewed by APEC members. In more recent years the scope of these commitments have expanded to cover a wide range of issues embracing objectives relating to inclusiveness, sustainability and economic reform, addressed within APEC under its structural reform agenda. As with other members, it is likely that APEC work programmes on structural reform influenced processes of economic reform within China, in particular following its entry into the WTO.

The extensive networks developed through participation in APEC among ministers, officials, business leaders and academics are an important contribution toward institutionalising cooperation among APEC members.

China has hosted APEC twice: in 2001 under the theme of “Meeting New Challenges in the New Century: Achieving Common Prosperity through Participation and Cooperation” and in 2014 under the theme of “Shaping the Future Through Asia-Pacific Partnership”.

China’s hosting of APEC in 2014 was particularly important in APEC’s evolution. By this time China was clearly established as one of the world’s two leading economies. It prioritised the Free Trade Area of the Asia-Pacific (FTAAP), and secured the commitment of APEC Leaders to the Beijing Roadmap for APEC’s contribution to the realisation of the FTAAP. An important first step along the Roadmap was a Collective Strategic Study jointly chaired by China and the United States, on the issues to be addressed in working toward establishment of the FTAAP. The insistence of APEC members that the study should be jointly chaired by China and the United States clearly reflected an understanding that the coming together of China and the United States in a consensus on how to proceed would be essential to the successful establishment of the FTAAP.

It is clear that the view that cooperation between the China and the United States is vital for APEC’s success remains widespread among APEC members.  

The author is director of the New Zealand APEC Study Centre.

The opinions expressed in the article reflect those of the author, and not necessarily those of People's Daily Online.