China will commit itself to building a cross-Pacific regional cooperation framework that benefits all parties. The vast Pacific is free of natural barriers, and we should not erect any man-made ones. We should let APEC lead and coordinate our actions, and uphold the approach of openness, inclusiveness and mutual benefit. We should enhance coordination on macroeconomic policies and regional free trade arrangements, promote regional integration, and avoid the Spaghetti Bowl effect, so as to build closer partnerships across the Pacific and jointly pursue long-term development of Asia Pacific.
-- Speech given by Xi Jinping at the APEC CEO Summit, October 7, 2013
Guarding Against the Spaghetti Bowl Effect
-- Bolstering cooperative relations in the Asia-Pacific region
The American economist Jagdish Bhagwati first coined the phrase "spaghetti bowl effect" in his 1995 article "US Trade Policy." It refers to bilateral free trade agreements and regional trade agreements ("preferential trade agreements" or PTAs) leading to different preferential treatments and country-of-origin provisions under various agreements that intertwine like a bowl of spaghetti and cannot be untangled or sorted out.
Xi Jinping used the economic term "spaghetti bowl effect" to show how the Asia-Pacific region needs to bolster cooperation to prevent unnecessary economic, political, and security conflicts from arising and impeding regional cooperation and development. This phrase also shows another feature of Xi Jinping's speaking style: His adeptness at using language understood in the international community; his concise, insightful descriptions of complex global situations; and his bold, clear expression of China's viewpoints and stances.
The Asia-Pacific region is now one of the most active and promising regions of the world- this was especially evident after the 2008 financial crisis. But the politics of the Asia-Pacific region are very complicated. Even though peace and development is on everyone's mind at the moment, there is no lack of conflicts and clashes between countries in this region. Occasionally some countries experience internal political turmoil. This leads to a strong spaghetti bowl effect in the field of politics, and especially security, of the countries in the region. If the countries of the Asia-Pacific do not pay close attention to this, it will significantly affect peace and development in the region and even the world. This is why Xi Jinping emphasized guarding against the spaghetti bowl effect.
In terms of economic and trade relations, in the Asia-Pacific region there are many trade agreements that exist simultaneously outside of APEC, and there surely are some conflicts among them. The political and security faction-forming of some countries has led to instability in the region. Furthermore, problems left over from history, geopolitics, and conflict of strategic interest such as territorial disputes have greatly complicated relations between Asia-Pacific countries, and the situation can change as quickly and mysteriously as the weather. This is why integrating the Asia-Pacific is such a challenging task.
To help stop the spaghetti bowl effect from arising, there needs to be more mutual trust and unity among the countries of the Asia-Pacific. Mutual trust is as valuable as sunshine is to life, and there is no future if Asia-Pacific countries are suspicious of and constantly on guard against each other. Peace and development in the Asia-Pacific must be built on the foundation of mutual trust among all countries. Just as xi Jinping calls for, countries of the Asia-Pacific "cannot step on each other's feet, let along offset each other." They must support each other, let everyone be winners, cooperate with each other, combine forces, and face challenges together. This is the only way to fully unlock the energy and potential of the Asia-Pacific region.
China has an ancient saying that "without rules, nothing can be accomplished." To prevent the spaghetti bowl effect from arising and avoid possible conflicts, we must create rules for action that all countries must abide by. The rules under the APEC system are excellent examples of this. The regional rules created to protect the common interests of all countries in the Asia-Pacific region should be respected and upheld by all countries. This is the only way to combine the forces of the Asia-Pacific countries, resolve differences, and resist the risks and challenges of regional development.
Under the backdrop of economic globalization, the Asia-Pacific region has formed a community of common interests and fates, and in some sense all prosper when one prospers and all fail when one fails. In all major issues of regional peace, development, stability, and security, the countries of the Asia-Pacific must support, bolster, and supplement one another with constructive words and actions. China is willing to do this, and is in fact tirelessly working toward this end. If every country of the Asia-Pacific is able to do this, we will prevent the spaghetti bowl effect from arising. This is certain to unlock the full energy and potential of the Asia-Pacific region and the regional prosperity and development is bound to be realized.
(An excerpt from XI JINPING: WIT AND VISION -- SELECTED QUOTATIONS AND COMMENTARY, published by FOREIGN LANGUAGES PRESS in 2015)
