New Asia-Pacific Trade Deal Shows China’s Clout

China and 14 other nations from Japan to New Zealand signed one of the world’s largest regional free trade agreements on Sunday. The pact, which took eight years to negotiate, could help further cement China as the dominant economic power in its neighborhood.

The Regional Comprehensive Economic Partnership covers 2.2 billion people — more than any previous regional free trade agreement. It comes after a retreat by the U.S. from sweeping trade pacts, like the Trans-Pacific Partnership rejected by President Trump.

The pact does not include India, a conspicuous omission. The New Delhi government pulled out of talks in July after China rejected its demands for a more ambitious arrangement.

Context: To some trade experts, the agreement shows that the rest of the world will not wait around for the U.S. As other countries sign new deals, American exporters may gradually lose ground.

Details: The pact will most likely formalize, rather than remake, business among the signatory countries. Its so-called rules of origin will set common standards to determine whether a final product qualifies for duty-free treatment, potentially making it simpler for companies to set up supply chains in several different countries.