Can regional prosperity be achieved by excluding China from economic groupings?

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Regional Prosperity is Unlikely Without China's Inclusion in Economic Groupings

Regional prosperity is unlikely to be achieved by excluding China from economic groupings, according to Tun Dr Mahathir Mohamad. He expressed this view while cautioning against unreserved support for the Indo-Pacific Economic Framework (IPEF), a 13-nation initiative led by the United States. Dr Mahathir suggested that the IPEF's intent is to isolate China, which he argued would hinder, rather than promote, regional economic well-being.
IPEF's Stated Goals and Structure

The Indo-Pacific Economic Framework (IPEF) was launched by US President Joe Biden with the stated aim of strengthening trade relations with Asian countries. Its focus areas include supply chains, digital trade, clean energy, and anti-corruption measures. The framework comprises 13 participating nations: Malaysia, Australia, Brunei, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States, and Vietnam. Collectively, these countries represent approximately 40% of the global Gross Domestic Product (GDP).
Concerns Regarding China's Exclusion

Dr Mahathir articulated a concern that the IPEF is primarily a political construct designed to isolate China, rather than a purely economic initiative. He emphasized the significant economic interdependence between nations and China, citing China as a major trading partner for Malaysia. His argument suggests that attempting to exclude a substantial economic power like China from regional frameworks would likely lead to diminished prosperity for all involved.
The Economic Significance of China

China's economic stature is undeniable, having become one of the wealthiest nations globally and a critical player in international trade. In the context of regional economic development, China's involvement in trade agreements and economic frameworks is often considered essential for fostering broad-based prosperity. Historically, large-scale economic integration that excludes major economic engines can lead to fragmented markets and reduced opportunities for growth, as economic activity may be rerouted or stifled.

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Can regional prosperity be achieved by excluding China from economic groupings?

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