Yimou Le, Ben Blanchard, and Jeanny KAO

TAIPEI (Reuters – China’s restrictive policies pose fundamental problems to its application to a major pan-Pacific pact for free trade. And if China joins Taiwan before Taiwan it may block their application.

China and Taiwan both submitted applications last month for membership to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. China, however, claims that it does not support Taiwan’s joining.

In an interview with Reuters late Thursday, Wang Mei-hua, Taiwan’s Economy Minister said that China entering first would be a clear indication of Taiwan’s reluctance to obstruct Taiwan. They oppose Taiwan joining any other country.

China claims it can represent Taiwan’s 23.5million people in international organizations, regardless of Taiwan’s claim to be an independent nation.

Beijing faces many issues, including internet censorship and labour rights. She said Beijing cannot reach the CPTPP high standards. These requirements “challenge China’s fundamental systems”.

If China is able to change them, then I believe changing the system and entering (the trade agreement) are not bad things. However, if the system cannot be altered, then why should they want to enter CPTPP. “This is an issue that I do not really get,” she said.

Look at the information. Nothing can enter. Wang spoke out about Facebook (NASDAQ.) blocking Google (NASDAQ.) from entering. This was in reference to China’s blocking both of the major internet sites. It also blocks a number of other Western companies, such as Twitter (NYSE.), for national security reasons.

Trans-Pacific Partnership, the original 12 member agreement (TPP) was considered an economic counterweight against China’s increasing influence.

The TPP became inextricably bound when the then-U.S. president Donald Trump pulled out of the United States.

This grouping was later renamed CPTPP and links Canada, Australia Brunei Chile, Japan Malaysia, Mexico New Zealand Peru, Singapore, Vietnam, Chile and Brunei.

Taiwan is a large semiconductor producer and has applied for membership under its name in the World Trade Organization. Its WTO title is the Separate Customs Territory (Taiwan, Penghu Kinmen, Matsu). Taiwan is also part of the Asia-Pacific Economic Cooperation.

Wang stated that Taiwan is not aware of any CPTPP members objecting to Taiwan’s application. This contrasts with the concern expressed by Japan, particularly about China’s bid.

“We haven’t heard of any opposition from any member, at least not after China submitted the application.”

Taiwan is seeking free trade agreements with other countries. Wang stated that if Taiwan joined the CPTPP, it wouldn’t need to negotiate a separate deal with Australia or Britain.

Although talks for joining the WTO have been ongoing for over ten years, Wang indicated that she doesn’t believe it will take as long to implement the CPTPP. However, it was difficult to set a date.

“I don’t believe the talks can go on for decades if there aren’t any political barriers that can be eliminated.”