TPP is a headwind for China via BNP Paribas

via BNP Paribas, TPP would be a headwind for China because of...

1) Exports... due to low or zero tariffs. China exports to the TPP12 countries made up 35.5% of total exports in 2014. And exports to TPP12 grew 12.8% between 2004 and 2014, against 14.7% for the whole countries.

2) FDI. Exports of foreign funded enterprises were USD 1.07 tn, making up 46% of the aggregate exports in 2014.

3) Production transferring and relocation...

Ma Jun, the chief economist of PBOC Research Department, estimates a 0.5% of GDP equivalent opportunity cost loss per annum during the 4-year transitional period if China cannot join in.

Consequently, however, TPP could push China Reform...!