On May 23 during President Biden‘s first Asia tour, he revealed Washington’s long-awaited Asia-Pacific economic strategy: the Indo-Pacific Economic Framework for Prosperity (IPEF).
“The future of the 21st century economy is going to be largely written in the Indo-Pacific — in our region,” the President said.
Along with a dozen initial partners: Australia, Brunei, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam (who together represent 40% of world GDP), the IPEF will engage in crucial economic and trade matters that concern the region.
Taiwan, Cambodia, Laos, Myanmar and China are not part of this group yet, but the door to their future membership remains open.
Thanking President Joe Biden for steering the initiative, Prime Minister Modi said, “The IPEF is a declaration of our collective [effort] to make the region an engine of global economic growth.” He also called on the participating nations to find common and creative solutions to tackle the economic challenges of the region.
Through the IPEF, the U.S. is attempting to challenge China’s attractiveness as a trade and investment partner in this region. It is offering deals on the digital economy, supply chain bottlenecks, and green infrastructure says Quartz.
Last updated: December 26th, 2025
