Yul Kwon:
To give us some perspective on President Obama's action plan for Asia, we're joined today by Bob Kapp via Skype. Bob is a China scholar and former head of the US-China Business Council, as well as an advisor to LinkAsia.

Yul Kwon:
Bob, thanks for coming on the program.

Bob Kapp:
My pleasure, Yul.

Yul Kwon:
Now, given that China is the world's second largest economy and America’s biggest creditor, do you think it’s a smart move for the U.S. to keep China out of the TPP?

Bob Kapp:
Well, the Trans Pacific Partnership is a trade agreement in negotiation now, between the U.S and eight other partners. It is not going to involve gigantic proportions of total American trade. On the other hand, China is the most important trade partner for virtually every single member of the negotiation except us, number one ranking in trade numbers. So it’s important that China not be actively discriminated against through a bad treatment but it is not necessary to include China at the start on this agreement.

Yul Kwon:
And why is that? I mean, if China is such a huge trading partner for most of the economies in that region, why wouldn’t you want to include China?

Bob Kapp:
Well it has to do with the stage of China’s economic development, and the way in which the Chinese economy and its trade policies and its domestic economic policies are structured. There has to be a great deal of meshing of beards, it is felt by Americans involved in this before China will be ready to pulley and mesh with the rest of the party. So the United States - President Obama has said on this trip - there are rules of the road and China has to play by the rules of the road. And China has said, "wait a minute, it depends on who writes the rules, if we have nothing to do with writing the rules, we may not be able to play by all those rules." Here’s TPP as a chance for the United States to try with eight other trade partners, small nations to be specific, to say, ok, these are the rules. And have an American say in the defining of those rules for trade in the Asia-Pacific region. China may or may not in the end feel comfortable and seeking admission to the TPP later.

Yul Kwon:
So in your view, the TPP isn’t a deliberate or avert effort on the part of the United States to try to isolate China?

Bob Kapp:
Well now that’s being hyped Yul. There’s the week of President Obama in Asia, there’s been a a lot of ugly talk in the American political process. The Chinese have been talking tough but the Chinese have territorial issues with a number of ASEAN or other Southeast Asia countries. So the president has certainly turned down the idea this week that this is another showdown between the U.S. and China. And there are lots of friction between the U.S. and China but the TPP, the the TPP, the Trans Pacific Partnership negotiation between the U.S. and eight small Asian economies is not part of any military encirclement or alliance against China.

Yul Kwon:
Thanks, Bob, we appreciate your insights.

Bob Kapp:
Well it’s start, but there is still a long way to go. Thanks, Yul.

Yul Kwon:
Bob Kapp is the former president of the U.S.-China Business Council, and an advisor to LinkAsia.