ASEAN-China Economic Competition and Free Trade Area

Abstract

The economic rise of China is having wide-ranging repercussions in ASEAN and the rest of the world. ASEAN perceives both threat and opportunity from China's economic success: the threat arises from the size and rapid growth of China's economy and the competition for export markets and foreign direct investment; the opportunity arises from possible increases in both exports to China's rapidly growing market and Chinese investment in ASEAN enterprises. ASEAN has embarked on deeper and faster integration toward an ASEAN Economic Community to meet these challenges and is simultaneously engaged in several ASEAN+1 initiatives to further improve its economic efficiency and market access. This paper explores the increasing competition and cooperation between ASEAN and China.

ASEAN and China as Mutual Economic and Geo-political Counter-Balance in the Region

“…China is a key export market for some ASEAN countries, led by Laos and Myanmar. In 2013, Vietnam's trade deficit with China was more than $ 23 billion; in 2014 it is nearly $ 29 billion; in 2015 it is more than $ 33 billion; in 2016 it is over $ 28 billion and in 2017 it has dropped to over $ 22.7 billion [10]. Based on this, it can be said that the commercial dependence of ASEAN countries on China is high compared to other trading partners, which is likely to put China in a stronger position to push up their political agenda in the region, for example, the maritime claims, or the pressure on small states to maintain a distance from the US security presence in East Asia.…”

Participación en las redes globales de producción en el sureste de Asia: prospectos para mejoramiento tecnológico y lecciones para América Latina

“…In the context of regional rivalries and the palpable rise of China, asean members decided to strengthen their economic institutional framework through a regional trade and services agreement in 1992. Later, especially after the 1997 economic crisis, asean developed separate linkages with China, Japan, and South Korea (asean+3), which has provided some economic cooperation and financial stability, but also a standardized criterion in terms of economic exchanges and ways to counterbalance regional economic powers (Mahbubani & Severino, 2014;Wong & Chan, 2002;Yue, 2005). already ripe to receive productive capital, at least as assembling centers and export platforms.…”

Encadenamientos productivos en el sureste de Asia: integración a las redes globales con empresas locales

“…ASEAN y sus miembros han reconocido una vez más su importancia estratégica en la competencia geopolítica y económica y pueden establecer algunas reglas para su beneficio. Sin embargo, como señalan Mahbubani y Severino (2014) la competencia por atraer inversión extranjera también aplica a China, por lo que es importante considerar que ese país no sólo es su socio, sino también su competidor (Wong & Chan, 2002;Yue, 2005).…”