Analysts see this as an emerging new trend of trade regionalisation in the eastern and western hemispheres - each dominated by one of the superpower - that could pose risks to global growth. This "will likely contribute to increased regionalisation of international trade, which would raise inflation and hamper growth for other countries caught in the crossfire." China has also applied to join the Comprehensive Progressive Trans-Pacific Partnership, one of the world's largest free trade agreements. To join this Pacific trade axis, though, China needs the approval from all member countries, including U.S. allies. "And both of those countries value trade with the U.S. under their North American framework more than they value trade with China."

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Persons: Gina Raimondo, Elizabeth Frantz, Neil Thomas, Donald Trump, Joe Biden, Raimondo, Trump, William Hurst, Joe Cash, Kripa Jayaram, Marius Zaharia, William Mallard Organizations: . Commerce, Capitol, REUTERS, Southeast Asia, Analysts, Asia Society Policy Institute, Higher, Census, Reuters, Canada Agreement, Comprehensive, Pacific, U.S, University of Cambridge, Thomson Locations: Washington , U.S, China, Washington, Canada, Mexico, Beijing, Southeast, decouple, U.S, Japan, South Korea, Australia, New Zealand, Pacific