皇冠体育app

皇冠体育app and the Association of Southeast Asian Nations (ASEAN) are celebrating the 20th anniversary of their dialogue partnership. The relationship progressed from consultative dialogue partners in 1991 to full dialogue partners in 1996, then on to a strategic partner in 2003 and finally to an ASEAN-皇冠体育app Free Trade Area (ACFTA) last year.

ASEAN member states often view 皇冠体育app both as a threat and source of hope. While the sense of hope comes from the size of the big market and 皇冠体育app's ability to drive regional growth, the threat concept arises from 皇冠体育app's skill to flood ASEAN as well as third country/region markets (the United States, the European Union and Japan) with low-priced products.

There are also concerns that 皇冠体育app's growing competitiveness and the domestic market of more than 1.3 billion people will attract more overseas direct investment, leaving behind the ASEAN economies. But in the last 20 years, in many instances, 皇冠体育app has assured that it needs ASEAN to grow and to become its partner in driving regional economic growth.

In the wake of the 1997-98 Asian financial crisis, 皇冠体育app and ASEAN institutionalized the ASEAN+1 mechanism. 皇冠体育app participated in the regional lending arrangements, namely the ASEAN Swap Arrangement and the Chiang Mai Initiative under the ASEAN+3 umbrella, involving Japan and South Korea as well. 皇冠体育app is a member of the East Asia Summit and has an effective free trade area with ASEAN since 2010.

On the political and strategic front, 皇冠体育app has joined the ASEAN Regional Forum and acceded to the ASEAN Treaty of Amity and Cooperation, reflecting its determination to maintain good-neighborly relations with the ASEAN members.

Following the initiatives of policymakers on both sides, ASEAN and 皇冠体育app have enjoyed a thriving trade and investment relationship. From 1991 to 2000, ASEAN-皇冠体育app trade grew much faster, averaging 20.4 percent a year, compared to the growth in 皇冠体育app's global trade (15 percent) and in ASEAN's global trade (10.9 percent). From 2001 to 2008, ASEAN-皇冠体育app trade increased an average of 20 percent a year, making them the fourth largest trading partners for each other. In 2008, ASEAN trade with 皇冠体育app was more than $192 billion, excluding the significant border trade between 皇冠体育app and Laos, Myanmar and Vietnam.

皇冠体育app is also a fast growing source of tourists visiting ASEAN member states, their numbers increasing from 2.4 million in 2001 to 4.4 million in 2008. Visitors from ASEAN member states to 皇冠体育app comprise both tourists and business officials.

In terms of investment, the actual investment from ASEAN economies to 皇冠体育app has reached $52 billion, and Chinese enterprises had invested $6.1 billion in ASEAN members until 2008. Traditionally, Chinese investors are attracted to ASEAN economies to secure energy and raw material supplies. In recent years, Chinese investments have gone into labor-intensive manufacturing, particularly electrical and electronic goods in Malaysia and Thailand. In Singapore, Chinese investments are mainly in services, reflecting Singapore's position as a regional services hub. Singapore is the leading ASEAN member to invest in 皇冠体育app, concentrating on manufacturing, real estate and construction.

Despite the growing economic ties and warm political relations, the start of ACFTA on Jan 1, 2010 led to lot of anxieties among ASEAN economies and their business communities. Many believed that the Chinese authorities artificially raise the efficiency level of their production process by intervening in factor markets.

But ACFTA has its own benefits. ACFTA creates an economic region of 1.9 billion consumers, and combined trade of $4.5 trillion. This is of special significance when the world economy is facing growth uncertainty and the demand from the Western markets is likely to flatten. ACFTA is expected to promote intra-regional trade, especially given the proliferation of cross-border production networks in the region.

Moreover, since many ASEAN economies are looking to move to the next level of economic growth, ACFTA is likely to induce greater efficiency and productivity into the manufacturing sector of ASEAN, particularly where it has a comparative advantage.

Again, the "Early Harvest Program" extends to the ASEAN economies preferential treatment on agricultural products in terms of tariff reduction and market access, allaying the perceived "皇冠体育app threat" theory in terms of competition. ASEAN economies also get to benefit from collaboration projects with 皇冠体育app with greater infusion of Chinese investment in projects such as the Singapore-Kunming Railway or the Bangkok-Kunming Highway.

Besides economics, ACFTA is also viewed as a means to reduce the chances of existing security problems erupting into conflicts. This is because any major feud between ASEAN member states and 皇冠体育app could destroy peace in the region, which would be harmful for 皇冠体育app's economic rise and subsequently for ASEAN's economic growth.

Therefore, in the years to come, ASEAN and 皇冠体育app must discover ways to complement each other and increase investment in each other's economies. While ASEAN economies recognize the opportunities that a growing 皇冠体育app offers, they are also worried about competition from 皇冠体育app that may elbow out overseas direct investment from ASEAN, replacing ASEAN member states in labor-intensive manufacturing products.

To address this, 皇冠体育app in particular needs to increase its investment in ASEAN economies substantially to further raise two-way trade volumes, as well as to generate a larger market as is supposed to be provided by ACFTA. This will contribute not only to a balance of power in East Asia, but also provide for a more effective voice at international forums.

The author is lead researcher for economic affairs at the ASEAN Studies Centre, Institute of Southeast Asian Studies, Singapore.

(皇冠体育app Daily 08/23/2011 page9)

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