US New Indo-Pacific Economic Framework Faces Headwinds

On Monday, U.S. President Joe Biden launched the Indo-Pacific Economic Framework (IPEF), as the new economic initiative raised concerns in the Asia-Pacific.

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"In order to prepare our economies for the future, we are launching the process to establish the Indo-Pacific Economic Framework for Prosperity," said a joint statement by the United States, Australia, Brunei, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, and Vietnam.

The U.S.-led IPEF, believed as part of its "Indo-Pacific Strategy", is described as being focused on four pillars: trade, supply chains, clean energy and infrastructure, and tax and anti-corruption. Biden's IPEF vision will not be without some serious headwinds, partly because a number of the commitments within the framework will be non-binding.

Some Asian countries and trade experts have thus far given a circumspect response to the program, as the Biden administration has made it clear that the IPEF will not be a traditional free trade agreement that involves commitments towards tariff-cutting.

It has also raised some eyebrows that Biden is not willing to risk U.S. jobs by offering increased market accessibility needed by the region.

The Japanese public, in addition, has taken issue with Biden's IPEF and the upcoming Quadrilateral Security Dialogue (QUAD) between the leaders of Japan, the United States, Australia and India on Tuesday.

QUAD's objective purports to include maritime security, COVID-19 issues, climate change, technological innovation and investment, but all four QUAD members have expressed similar opinions about China's "growing assertiveness." Thus some experts believed QUAD was formed as a platform to counter China's growing influence in the Asia-Pacific.

Chinese Foreign Affairs Minister Wang Yi also criticized the U.S. for creating the Indo-Pacific Strategy to form small cliques in the name of freedom and openness. He said the framework attempted to erase the name "Asia-Pacific" and effective regional cooperation architecture.

"Facts will prove that the so-called Indo-Pacific Strategy is in essence a strategy that creates divisions, incites confrontation and undermines peace. No matter how the strategy is airbrushed or disguised, it is bound to be a failed strategy," Wang pointed out.

On Sunday, protesters took to the streets in central Tokyo against the Indo-Pacific strategy including QUAD, denouncing brinkmanship leading to confrontation instead of regional solidarity. One group of protesters were carrying a banner that read in both Japanese and English: "CRUSH! Japan-U.S. & Quad Summit for War."