David Brunnstrom, Michael Martina

WASHINGTON, (Reuters) – America must “step up” its economic engagement in Asia. Kurt Campbell, White House Indo-Pacific coordinator, said this on Thursday. He called such outreach the defining component of U.S. foreign policy for the coming year.

Campbell said that President Joe Biden has made it clear that America must play a role in shaping economic and commercial relations and trade practices for the Indo-Pacific.

Campbell added, “This is an area where the United States must step up its game.” He also said that U.S. participation should go beyond traditional commerce and incorporate digital engagement and technology standard setting.

“We’ve got to make clear that not only are we deeply engaged diplomatically, militarily, comprehensively, strategically – that we have an open, engaged, optimistic approach to commercial interactions, investment in the Indo Pacific,” Campbell said.

He said that he believed the Biden administration understood the importance of 2022 engagements across the entire region, but did not give specifics.

The U.S.-China relationship has fallen to its lowest point for decades, as Biden sought to strengthen ties with partners and allies to combat what Washington considers to be increasing military and economic coercion from Beijing.

As evidence of U.S.-China partnerships, his administration has highlighted the “AUKUS” pact (under which Britain and United States agreed to assist Australia in acquiring nuclear submarines) and leader-level summits among the United States, Australia and India as examples.

Some countries in the Indo-Pacific, which include China as their biggest trading partner, lament what they perceive as a lack of U.S. engagement. This is especially true after Trump’s withdrawal from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement (CPTPP).

Biden said that Washington would start talks with Asian leaders on October to create an Indo-Pacific economy framework. But, very few details have been revealed. The administration also has avoided any moves toward joining trade deals which critics believe threaten U.S. job security.

Meanwhile, China has sought to join CPTPP, and a separate 15-nation regional trade pact backed by Beijing that excludes Washington – the Regional Comprehensive Economic Partnership (RCEP) – took effect on Jan. 1 for most of the countries.

Campbell explained that although U.S.-China relationships are more clearly defined by competition than ever before, America isn’t seeking “domination”.

“I think the United States ultimately seeks a type of coexistence and understanding with China.”

However, he stated that the United States would remain the dominant player on the international stage and that Beijing would make a mistake “trying to take us out”.