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Want to accelerate software development at your company? See how we can help.
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Want to accelerate software development at your company? See how we can help.
Want to accelerate software development at your company? See how we can help.

Joe Biden’s failures on trade benefit China - The Economist   

At the annual Asia-Pacific Economic Co-operation summit in San Francisco, all eyes were on the meeting between Xi Jinping and Joe Biden. But when it comes to competition between the two great powers in Asia, the most consequential decisions were to be made—or rather not made—behind the scenes.

Trade negotiators had hoped the summit would yield an announcement on the Indo-Pacific Economic Framework (ipef), America’s offering on trade to 13 regional economies, intended as its main weapon in the battle for economic influence in Asia. Instead, a decision by the Biden administration to halt discussions on digital trade has frozen an important part of an already limited agreement. There will be no announcement on the trade portion of ipef, one of the deal’s four pillars. With American elections now just a year away, further progress will be difficult.

Digital trade is a large and growing category, covering online services, cross-border flows of data and e-commerce. In 2017, when Donald Trump withdrew from the Trans-Pacific Partnership (tpp)—a more comprehensive agreement than ipef—Asian countries had little hope of greater access to American markets. Support for opening up digital commerce was one of America’s last claims to international openness. Indeed, the usmca agreement with Canada and Mexico, signed by Mr Trump in 2018, prohibited both customs on digital products and data localisation (the practice of forcing companies to store data in the country where it is collected).

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