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Map: Danielle Alberti/Axios

The largest free trade area in the world came into existence over the weekend — and the U.S. was not even invited.

Why it matters: For the first time in living memory, the hegemon at the center of a major global free trade agreement is not the U.S.

  • China has stepped into Uncle Sam's shoes, and now anchors the Regional Comprehensive Economic Partnership, or RCEP, an area covering 2.2 billion people and 1/3 of all the economic activity on the planet.

The big picture: President-elect Joe Biden is expected to seek a broad multilateral alliance to pressure China on everything from trade to human rights once he becomes president. But China is making broad multilateral alliances of its own.

  • RCEP includes rich democracies such as South Korea, Japan, and Australia. Their position in this major free trade area will make it that much harder for Biden to unite them against China.

Flashback: The Obama administration was explicit that the U.S. should be the anchor of a Pacific Rim trade agreement, the TPP, that pointedly excluded China.

  • "China is negotiating a trade deal that would carve up some of the fastest-growing markets in the world at our expense," wrote then-President Obama in 2016.
  • That trade deal is now reality, while America has pulled out of the TPP. There is very little chance that the U.S. will rejoin it under Biden's presidency.

The bottom line: Big new trade pacts are extremely difficult to negotiate. China showed real determination in getting this one done, even as the U.S. demonstrated almost no interest in improving or even maintaining economic relations with the region. China's partners in RCEP are likely to remember for many years which of the two giants was more reliable.

Go deeper

Erica Pandey, author of @Work
Nov 24, 2020 - World

Remote work shakes up geopolitics

Illustration: Eniola Odetunde/Axios

The global adoption of remote work may leave the rising powers in the East behind.

The big picture: Despite India's and China's economic might, these countries have far fewer remote jobs than the U.S. or Europe. That's affecting the emerging economies' resilience amid the pandemic.

Court rejects Trump campaign's appeal in Pennsylvania case

Photo: Sarah Silbiger for The Washington Post via Getty Images

A federal appeals court on Friday unanimously rejected the Trump campaign's emergency appeal seeking to file a new lawsuit against Pennsylvania's election results, writing in a blistering ruling that the campaign's "claims have no merit."

Why it matters: It's another devastating blow to President Trump's sinking efforts to overturn the results of the election. Pennsylvania, which President-elect Joe Biden won by more than 80,000 votes, certified its results last week and is expected to award 20 electoral votes to Biden on Dec. 12.

Dave Lawler, author of World
47 mins ago - World

Belarus dictator Lukashenko says he'll leave post after new constitution

Photo: Valery Sharifulin\TASS via Getty

Longtime Belarusian President Aleksandr Lukashenko has said he will step down after a new constitution comes into force, according to Belarusian state media.

Why it matters: Lukashenko has faced three months of protests following a rigged election in August. He has promised to reform the constitution to reduce the near-absolute powers of the president, but has insisted that his strong hand is needed to see that process through.