The US’s ambitious plan

The idea of ​​the Indo-Pacific Economic Framework (IPEF) was first raised by US President Joe Biden at the East Asia Summit in October 2021. With the desire to strengthen its position and diversify cooperation through economic cooperation, the US is taking active steps to promote connectivity with countries in the region.

US President Joe Biden at the ASEAN-US Special Summit. (Photo: VNA)
US President Joe Biden at the ASEAN-US Special Summit. (Photo: VNA)

US President Joe Biden is making his first visit to Asia since taking office. The trip is also considered to be the launch event of the new US economic strategy for the Indo-Pacific region. This plan is promoted in the context that the US is seen as having ‘neglected’ economic cooperation with the region in recent years, while focusing more on enhancing security with the formation of alliances and security partnerships such as AUKUS(with Australia and the UK) and the Indo-Pacific Quad dialogue mechanism (with Japan, India and Australia). Following its withdrawal from the Trans-Pacific Partnership Agreement (TPP), the US has yet to come up with a clear economic strategy in the region.

The details of the IPEF have not been announced by Washington, but according to analysts, this could be a new US initiative to promote cooperation with allies and partners in the region, in the fields of trade, digital economy, supply chain, decarbonisation, as well as high-quality infrastructure. The new economic strategy in the Indo-Pacific region is being strongly promoted by President Joe Biden during his visit to the Republic of Korea (RoK) and Japan, two close allies in Northeast Asia.

On the occasion of President Joe Biden’s visit to Seoul, the US and the RoK officially kicked off the ‘economic security dialogue’. RoK President Yoon Seok-youl stressed that the RoK-US alliance should be developed in accordance with the ‘era of economic security’. The two sides agreed to establish a dialogue channel between the Offices of the Presidents of the two countries to coordinate policies in the fields of advanced technologyand supply chains, with the aim to resolve issues affecting the RoK-US technology alliance.

During his visit to Japan and the participation in the Quad Summit in Tokyo, President Biden is expected to announce details of the IPEF on May 23. The content of IPEF is anticipated to focus on four pillars including: fair trade, supply chain resilience, infrastructure and carbon removal, and taxation and anti-corruption. Japan welcomes the IPEF as a move that shows the US’s active commitment in the Indo-Pacific region.

In the Free and Open Indo-Pacific Strategy announced in February 2022, the US announced that it will focus on all areas in the Indo-Pacific, from Northeast Asia to Southeast Asia and from South Asia to Oceania, including islands in the Pacific Ocean.

However, it is easy to see that Southeast Asia plays a central role in the US Indo-Pacific strategy. The US’sattachment of importance to Southeast Asia has beenclearly demonstrated at the recent ASEAN-US Special Summit in Washington on the occasion of the 45th anniversary of the partnership between the two sides.

President Joe Biden affirmed that the meeting marked the beginning of a new era in US-ASEAN relations. The highlight of the recent ASEAN-US Special Summit was the issuance of a Joint Vision Statement, which agreed to upgrade the ASEAN-US relationship to a Comprehensive Strategic Partnership.

Similarities between ASEAN’s vision for the Indo-Pacific and the US strategy for open, inclusive and rules-based regional architecture provide a solid foundation for the two sides to lift the level of relations.

America’s economic plan for the Indo-Pacific region is promising. However, the success or failure of the strategy depends heavily on the actual efforts and actions of the US, as well as the support of other countries, for the common goal of an open, inclusive, prosperous and resilient region.