China, Russia suffer setback to global ambitions with major player refusing to join trading bloc
Both China and Russia have seen their global ambitions suffer a major setback after India, the world’s third-largest economy, refused to join the proposed Regional Comprehensive Economic Partnership (RCEP), a potential megatrade bloc with 16 countries.
India pulled out of the trade deal which seeks to establish a single market stretching across coastline of the Pacific and Indian Ocean, a move that China and Russia had been heavily pushing for. The move by India reflects the nation’s attempts to protect its domestic industries from increased competition with the world’s largest economies, and it also highlights the complex political realities facing the region and global trading blocs such as the RCEP.
The setback for China and Russia will be particularly painful as the two nations have invested heavily in the RCEP as part of their efforts to expand their global influence. In addition to increasing access to markets in some of the world’s largest economies, the partnership would also have potentially granted China much needed extra-regional legitimacy and regional power.
In the short-term, the bloc’s failure to secure India is a major blow. However, it could also present an opportunity for China and Russia to work together to pursue other diplomatic efforts in securing India’s expanding interests in the region. This could be an effective way for Russia to capitalize on its own burgeoning relationship with India, while also ensuring that China’s regional influence doesn’t slide.