• The principal change is a reinforced military alliance, with China as the clear target. China’s growing military capacity will now be more effectively countered by the multi-layered alliances the US has created. In other words, the creation of the Aukus military alliance has given added momentum to the CPTPP. Conclusion: Overall, the region may benefitPutting it altogether, we see some good coming out of the new military balance in the region. The Aukus alliance makes the risks of such a military option too great.

Source: The Edge Markets October 08, 2021 03:33 UTC