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By Long Guoqiang，Development Research Center of the State Council

The Trans-Pacific Partnership Agreement (TPP) was initiated by New Zealand and other three countries in 2005, with the US getting involved in relevant talks in 2008. Both China and the international community have shown great concern about TPP, possibly for two reasons. First, TPP is a big organization with 12 participant countries in its talks. Its aggregate GDP account for one third of the world's total, including the world's largest and third largest economies and its territorial scope strides across the Pacific Ocean. Second, more importantly, TPP is considered as the mode of future economic and trade rules. The US involvement is based on two considerations: viewing from the offensive perspective, it could further remove access barriers to other countries' markets for direct economic benefits; and observing from the defensive side, it could weaken or even eliminate competitors' advantages and fully display its own advantages. China's response to TPP is not without any preparations. Our fundamental policy to deal with TPP is as follows: first, China should accelerate strengthening its industrial international competitiveness; second, the government should take a more open position towards its management; third, as a large country, China needs to adopt more proactive regional cooperative strategies; fourth, China should enhance domestic reform; and fifth, China should be better able to participate in making global rules. Generally speaking, in responding to TPP, what we feel most is a sense of urgency. The above-mentioned issues should all be promptly handled.