US to Pursue Asia Economic Agreement Next Year... South Korea Passed Over

Effectively Aimed at Containing China
Supply Chain and Export Controls Expected to Be Included

Gina Raimondo, U.S. Secretary of Commerce
[Photo by Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The United States is set to pursue a strong economic agreement with Asian countries early next year. The focus is on cooperation regarding supply chains, export controls, and artificial intelligence (AI) standards, effectively launching a new economic framework to counter China. However, South Korea, a major Asian economic power and a traditional U.S. ally, was not mentioned in this U.S. plan, which is expected to spark controversy over a potential ‘Korea bypass’ in the future.

U.S. Secretary of Commerce Gina Raimondo stated in an interview with Bloomberg News on the 9th (local time), "President Joe Biden prioritizes strengthening relations with Asia."

After her first Asia tour since taking office last month, Raimondo visited Japan, Singapore, and Malaysia. She explained the purpose of her visits, saying, "Since the Biden administration is not planning traditional trade negotiations, it was to gauge Asia’s willingness regarding this matter," adding, "Rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was not on the agenda." She also said, "The demand for the U.S. to enter and re-engage was beyond expectations," and "A new economic framework for a new economy will be launched in the first quarter of next year."

Regarding the participating countries in the new economic agreement, she said, "We want not only advanced countries like Japan, Singapore, Australia, and New Zealand but also developing countries such as Malaysia, Vietnam, and Thailand." Raimondo emphasized, "We want to show results within a year," and "Unlike previous agreements, the new agreement with Asia will not require approval from the U.S. Congress. It is not a trade agreement but will be very strong."

The U.S. plans to focus especially on supply chains for critical goods such as semiconductors. Raimondo said, "The goal of the new agreement is to establish long-term, solid cooperation regarding supply chains," noting that the government convening stakeholders such as sellers and users at the same table increases transparency and trust in the supply chain. She added, "The U.S. Congress is currently discussing ways to help some non-U.S. companies that benefited from the $54 billion emergency budget bring semiconductor manufacturing back to the U.S.," emphasizing, "The key is that finished products are produced in the U.S."

Raimondo stated, "The U.S. is overly dependent on Taiwan for semiconductors," and said, "Through the new agreement, we will cooperate to establish export controls to restrict sensitive goods from going to China and other 'authoritarian countries.'" She also encouraged allied participation in countering China, saying, "If the U.S. imposes export controls on certain semiconductor equipment parts to China alone, China will obtain components from our allies."

Cooperation will also extend to AI and cybersecurity. Raimondo said, "We will establish explicit frameworks with allies regarding technical standards and rules for AI and cyber standards," and "We will define ethical AI and accountability standards together with our allies."

Bloomberg News noted, "However, it is uncertain whether the level of economic cooperation the U.S. desires aligns with what Asian countries want," adding, "Other countries like Japan have already requested the U.S. to reconsider former President Donald Trump’s withdrawal from the CPTPP." In September, China formally applied to join the CPTPP, which was led by Japan and includes 11 countries such as Australia, Canada, Chile, and New Zealand, raising U.S. concerns.

This content was produced with the assistance of AI translation services.