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China won't `squeeze' US out: Carter

Australia, the UK and other allies have aligned themselves with the China-led AIIB, but the US doesn't plan to diminish its influence in the Asia-Pacific.

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Source: AAP


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US Defence Secretary Ash Carter has talked up America's importance to the Asia-Pacific and rejected fears China's economic growth would undermine his nation's influence in the region.

Carter's speech on Monday at Arizona State University came just days after traditional allies Australia, Great Britain, France, Germany and Italy indicated they would, or were contemplating, joining the China-led Asian Infrastructure Investment Bank.

It was viewed as a rebuke to the US and possible shift toward China in the region.

"Some people would have you believe that China will displace America in the Asia-Pacific or that its economic growth will somehow squeeze out opportunities," Carter said.

"But I reject the zero-sum thinking that China's gain is our loss because there is another scenario in which everyone wins - and it is a continuation of the decades of peace and stability anchored by a strong American role, in which all Asia-Pacific countries continue to rise and prosper.

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"This is the scenario we seek in the ongoing rebalance."

In January's State of the Union speech US President Barack Obama was blatant in his desire to blunt China's influence in the Asia-Pacific with the Trans-Pacific Partnership.

The proposed TPP trade deal involves 12 countries - Australia, US, New Zealand, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore and Vietnam.

"In terms of our rebalance in the broadest sense, passing TPP is as important to me as another aircraft carrier," Carter said.

"TPP would deepen our alliances and partnerships abroad and underscore our lasting commitment to the Asia-Pacific and it would help us promote a global order that reflects both our interests and our values."

Carter's speech at the John McCain Institute in Tempe, Arizona, came on the first stop of a trip that will take him to Japan, South Korea and Hawaii.


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