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Impact of A Rising Chinese Economy and ASEAN’s Responses


  • Yunhua Liu

    (Division of Economics,School of Humanities and Social Sciences, Nanyang Technological University, Singapore)

  • Beoy Kui Ng

    (Division of Economics,School of Humanities and Social Sciences, Nanyang Technological University, Singapore)


The emergence of China as one of the largest trading nation provides challenges and opportunities to its neighboring ASEAN countries. In the face of the rise of China, there were concerns that ASEAN economies may be adversely affected. One of the concerns is that the world export markets of labor intensive goods will be threatened if China turns into the world low cost manufacturing workshop. Meanwhile, trade between China and ASEAN countries increased dramatically during the past decade. Not surprisingly, China’s accession to WTO and the future establishment of a Free Trade Area (FTA) between ASEAN and China will further change the trade relations between the two areas. The paper analyses the past trade patterns between China and ASEAN countries and find out the impact of the FTA on ASEAN countries, in particular, the impacts to specific industries in each individual country. Secondly, the paper also examines the ever increasing role of foreign direct investment between the two regions and finally, it analyzes the possible policy responses of the ASEAN countries and consequences of these policies.

Suggested Citation

  • Yunhua Liu & Beoy Kui Ng, 2007. "Impact of A Rising Chinese Economy and ASEAN’s Responses," Economic Growth Centre Working Paper Series 0703, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
  • Handle: RePEc:nan:wpaper:0703

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    References listed on IDEAS

    1. Tain-Jy Chen & Ying-Hua Ku, 2003. "The Effects of Overseas Investment on Domestic Employment," NBER Working Papers 10156, National Bureau of Economic Research, Inc.
    2. Yongzheng Yang, 2003. "China'S Integration Into the World Economy; Implications for Developing Countries," IMF Working Papers 03/245, International Monetary Fund.
    3. Zainal Aznam Yusof, 2003. "Malaysia's Response to the China Challenge," Asian Economic Papers, MIT Press, vol. 2(2), pages 46-73.
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    More about this item


    ASEAN trade policy; rising Chinese economy;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations


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