• Research
  • Emissary
  • About
  • Experts
Carnegie Global logoCarnegie lettermark logo
DemocracyIran
  • Donate
{
  "authors": [
    "Douglas H. Paal"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Carnegie China"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie China",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "North America",
    "United States",
    "East Asia",
    "Southeast Asia",
    "China"
  ],
  "topics": [
    "Economy",
    "Trade",
    "Foreign Policy"
  ]
}

Source: Getty

In The Media
Carnegie China

Why Congress Must Pass the TPP

If America is to save its leading role in Asian politics, diplomacy, and security, it has to modernize the economic underpinnings of that role or suffer marginalization.

Link Copied
By Douglas H. Paal
Published on Jun 17, 2015
Program mobile hero image

Program

Asia

The Asia Program in Washington studies disruptive security, governance, and technological risks that threaten peace, growth, and opportunity in the Asia-Pacific region, including a focus on China, Japan, and the Korean peninsula.

Learn More

Source: National Interest

President Obama’s own party last week defeated his central foreign policy initiative in Asia – the legislative package for the Trans Pacific Partnership (TPP) trade agreement— and rendered U.S. policy in the region as unserious. If America is to save its leading role in Asian politics, diplomacy and security, which it has enjoyed since the end of World War II, it has to modernize the economic underpinnings of that role or suffer marginalization. Congress voted for marginalization. It needs to correct that immediately.

This happened as voices in Congress are raising their decibel level over Chinese hybrid diplomacy and territorial salami-slicing in the South and East China Seas. These critics claim the Obama administration is all talk and no action, and they have a point. Across Washington, policymakers and think tanks are searching their thesauruses for tougher adverbs and adjectives to describe Chinese behavior, but uniformly fail to come up with effective alternatives.

The administration stumbled for a year over how to deal with China’s new proposed Asian Infrastructure Investment Bank, and suffered a humiliating diplomatic defeat. China has now launched and promised to fund new initiatives in Southeast, South, and Central Asia, known collectively as “one belt, one road,” (OBOR), which are intended to deepen interdependency between China and its neighbors. The United States meanwhile is struggling to find chump change to help Vietnam and the Philippines defend their maritime territories.

Under these circumstances, instead of continuing to try to persuade friendly governments on China’s periphery that the United States is committed to its “rebalance to Asia,” and therefore to their and its own security, Washington might as well say “never mind.” There are always doubts among such countries that the United States might not mean what it says, especially when a power transition between the United States and China is taking place before their eyes. Now they can see the proof.

And this is occurring on the eve of the annual Strategic and Economic Dialogue between Beijing and Washington, where the two sides are supposed to address the important issues besetting them. Congress could have hardly designed a more effective means of disempowering America’s diplomats to deal with the very issues it is clamoring to see fixed.

What can be done now?

The first order of business is for the House to get the TPP legislative package passed this week. Eleven friendly nations have bet their futures on America remaining deeply engaged in their region by reaching the TPP agreement. It is a vital part of the needed counterweight to a still rising China.

Since the president walked away from his commitment to punish Syria for its use of chemical weapons (a commitment he casually and unwisely made), the administration planted a disturbing suspicion that the United States is not as reliable as it once was. The region’s leaders remained eager to find proof that their suspicion was misplaced, but it never quite went away.

Now, as China beavers away in the South China Sea building islands out of submerged features, the region has watched as Washington developed a near hysteria of rhetoric, evidently without the means to do something about the facts that China is creating on the waters. Instead of repeating futile calls for maintenance of the status quo and cessation of upgrades, which have been flagrantly ignored by all claimants there, the United States should launch an intense diplomatic initiative, preferably partnering with others and not negotiating for them, to address territorial disputes, marine resources, and undersea hydrocarbons.

As China adds air and sea ports to its newly reclaimed islands, the United States should help the Philippines upgrade its contiguous Palawan island facilities at Bautista air field and Ulugan port. Roughly 100 miles from the new Chinese facilities, upgrading these stations will provide a visible counter to them. If Beijing chooses to militarize the new islands, Manila and Washington will have a credible option to deploy forces to Palawan. Meanwhile, the Seabees and Filipino counterparts can upgrade them using the same humanitarian justifications China’s Ministry of Foreign Affairs has claimed. They need not be stymied by the Philippines Supreme Court’s deliberation over the constitutionality of the new Enhanced Defense Cooperation Agreement (EDCA) between the U.S. and Philippine governments.

Why now?

From 1998 to about 2008, Chinese diplomacy and economic activity with its neighbors were amazingly effective. With the great financial crisis of 2008-09 and the successful hosting of the Beijing Olympics, however, something happened in China to make its diplomacy and economic activity, as well as its rapid military modernization, suddenly appear more threatening to the neighbors. Beijing became more “assertive” about its perceived maritime rights as it acquired the military and paramilitary means to do so.

For a variety of reasons, the Obama administration pronounced its “rebalance to Asia” starting in 2011, pledging to hold American capabilities steady in Asia as it reduced them elsewhere in the aftermath of the Iraq and Afghan conflicts. To most Chinese, it seems, the rebalance was seen as “containment” of China and inherently hostile.

Now it is arguable that China has seen that there was an unnecessary cost in being more assertive and that it needs to change its game plan. Nineteen months ago, new President Xi Jinping hosted a conference to examine its diplomacy toward its neighbors. And seven months ago, he convened another conference on foreign policy that seemed to pull the various strands of Chinese activity together. Beijing’s hosting of the Asia Pacific Economic Cooperation leaders forum last November signaled the beginning of Beijing’s new smile diplomacy.

Therefore, we see today Chinese initiatives intended to link their neighbors more closely to the Chinese economy, through infrastructure connectivity of every type, plus direct investment and trade. I assume this is to add to the gravitational pull of China on long wary neighbors and diminish the attractiveness of the United States. Separately, where China has active disputes, with Japan, the Philippines, and Vietnam, it is keeping up the pressure of physical presence while softening its rhetoric, for the most part.

If you think about it, the two components of inducement and compellence in China’s newly energized diplomacy are likely to have at least one common outcome: diminishment of the value of U.S. alliances and relationships among the targeted nations. This is China’s “counter-balance” to America’s rebalance. It appears to be deadly serious. Now it is time for the United States to be serious, beginning by passing successfully the TPP agreement.

This article was originally published by the National Interest.

About the Author

Douglas H. Paal

Distinguished Fellow, Asia Program

Paal previously served as vice chairman of JPMorgan Chase International and as unofficial U.S. representative to Taiwan as director of the American Institute in Taiwan.

    Recent Work

  • Paper
    America’s Future in a Dynamic Asia

      Douglas H. Paal

  • Q&A
    U.S.-China Relations at the Forty-Year Mark
      • +1

      Douglas H. Paal, Tong Zhao, Chen Qi, …

Douglas H. Paal
Distinguished Fellow, Asia Program
Douglas H. Paal
EconomyTradeForeign PolicyNorth AmericaUnited StatesEast AsiaSoutheast AsiaChina

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

  • Man standing next to a pile of burned cars
    Commentary
    Emissary
    The Myriad Problems With the Iran Ceasefire

    Four Middle East experts analyze the region’s reactions and next steps.

      • Andrew Leber
      • Eric Lob
      • +1

      Amr Hamzawy, Andrew Leber, Eric Lob, …

  •  A machine gun of a Houthi soldier mounted on a police vehicle next to a billboard depicting the U.S. president Donald Trump and Mohammed Bin Salman, the Crown Prince and Prime Minister of Saudi Arabia, during a protest staged to show support to Iran against the U.S.-Israel war on March 27, 2026 in Sana'a, Yemen.
    Collection
    The Iran War’s Global Reach

    As the war between the United States, Israel, and Iran continues, Carnegie scholars contribute cutting-edge analysis on the events of the war and their wide-reaching implications. From the impact on Iran and its immediate neighbors to the responses from Gulf states to fuel and fertilizer shortages caused by the effective shutdown of the Strait of Hormuz, the war is reshaping Middle East alliances and creating shockwaves around the world. Carnegie experts analyze it all.

  •  A machine gun of a Houthi soldier mounted on a police vehicle next to a billboard depicting the U.S. president Donald Trump and Mohammed Bin Salman, the Crown Prince and Prime Minister of Saudi Arabia, during a protest staged to show support to Iran against the U.S.-Israel war on March 27, 2026 in Sana'a, Yemen.
    Article
    Amid Iran War, Gulf Countries Slow the Pace of Reforms

    The return of war as the organizing factor in Middle Eastern politics has predictable consequences: governments are prioritizing regime stability and becoming averse to political and social reform.

      • Sarah Yerkes

      Sarah Yerkes, Amr Hamzawy

  • Commentary
    Carnegie Politika
    Power, Pathways, and Policy: Grounding Central Asia’s Digital Ambitions

    Central Asia’s digital ambitions are achievable, but only if policy is aligned with the region’s physical constraints.

      Aruzhan Meirkhanova

  • Commentary
    Strategic Europe
    Taking the Pulse: Can NATO Survive the Iran War?

    Donald Trump has repeatedly bashed NATO and European allies, threatening to annex Canada and Greenland and deploring their lack of enthusiasm for his war of choice in Iran. Is this latest round of abuse the final straw?

      • Rym Momtaz

      Rym Momtaz, ed.

Get more news and analysis from
Carnegie Endowment for International Peace
Carnegie global logo, stacked
1779 Massachusetts Avenue NWWashington, DC, 20036-2103Phone: 202 483 7600Fax: 202 483 1840
  • Research
  • Emissary
  • About
  • Experts
  • Donate
  • Programs
  • Events
  • Blogs
  • Podcasts
  • Contact
  • Annual Reports
  • Careers
  • Privacy
  • For Media
  • Government Resources
Get more news and analysis from
Carnegie Endowment for International Peace
© 2026 Carnegie Endowment for International Peace. All rights reserved.