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The Economic Rise of China: Challenges and Opportunities for ASEAN

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  • Siow Yue CHIA
  • Chalongphob SUSSANGKARN

Abstract

This paper looks at the economic rise of China and its impacts and implications for the Association of South‐East Asian Nations (ASEAN) region. The issues of complementarities and competitiveness of ASEAN and China in trade and investment and the opportunities and challenges arising from China's emergence and the ASEAN‐China Free Trade Area are discussed. The message from China's emergence is clear and strong; it is that size does matter. To increase ASEAN competitiveness, the paper highlights the need for a deeper and more rapid economic integration of ASEAN in order to exploit scale economies. The important role of Japan in this process is highlighted. Finally the issue of ASEAN economic diversity is discussed. It is suggested that while ASEAN is fairly diverse, this should not be a critical stumbling block to a more rapid economic integration of ASEAN.

Suggested Citation

  • Siow Yue CHIA & Chalongphob SUSSANGKARN, 2006. "The Economic Rise of China: Challenges and Opportunities for ASEAN," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(1), pages 102-128, June.
    • Handle: RePEc:bla:asiapr:v:1:y:2006:i:1:p:102-128
    DOI: 10.1111/j.1748-3131.2006.00011.x
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    Cited by:

    1. Julia Kubny & Florian Mölders & Peter Nunnenkamp, 2011. "Regional Integration and FDI in Emerging Markets," Chapters, in: Ulrich Volz (ed.), Regional Integration, Economic Development and Global Governance, chapter 8, Edward Elgar Publishing.
    2. Yonghong Tu & Xiao Tan, 2012. "Technology spillovers of FDI in ASEAN sourcing from local and abroad," China Finance Review International, Emerald Group Publishing Limited, vol. 2(1), pages 78-94, January.
    3. Chalongphob Sussangkarn, 2016. "Comment on “Connectivity in East Asia”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(2), pages 195-196, July.
    4. Hooi Hooi Lean & B. N. Ghosh, 2010. "Economic Integration in Asia: Quo Vadis Malaysia?," International Economic Journal, Taylor & Francis Journals, vol. 24(2), pages 237-248.
    5. Peter E Robertson & Jessica Y Xu, 2010. "In China's Wake: Has Asia Gained From China's Growth?," Economics Discussion / Working Papers 10-15, The University of Western Australia, Department of Economics.

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