Thursday, September 23, 2010

Compete for South-East Asia

July 1, China, Japan, Korea and the ASEAN foreign ministers agreed at the Jakarta meeting, held in Kuala Lumpur for the first time next year, most of East Asia summit, held in China in 2007 the second meeting the objective of creating an East Asian Community. Economic growth in the world's most active areas the prospect of establishing an East Asian common market, has started coming into view. With the continued strength of national economies, and improve the quality of the economy, many people believe that Asia has been the capital to play this great game. The recent high oil prices in Asia to pay the high premium oil, let people see the future of the world's largest importer of energy on economic integration to form the necessary collective bargaining power.

However, in the "free trade" under the banner of regional integration in East Asia together, not be easy. The proposed East Asian common market to the United States and Russia excluded, has raised awareness of the U.S. Secretary of State Colin Powell, and publicly identified by his "Asia for Asians" and "Yellow integration" expressed dissatisfaction with the trend. In addition, East Asia should come together, it must cross the border disputes, historical understanding, ideological differences and economic development all kinds of roadblocks.

Therefore, a phased strategy to go into the multiple constraints on the best choice, and Southeast Asia are the most prominent of a breakthrough.

May 24, when the Thai Agriculture Committee Chairman Wu Wen sand to a basket of fresh tropical fruits from Thailand presented to the visiting Deputy Secretary of Nanning City, home Xiang Feng, both sides can feel a kind of "harvest" of joy. The first quarter of this year is the "Early Harvest" program to implement the first quarter, China's imports from Thailand worth 240 million yuan of the fruit, the same period, the value of 42.68 billion yuan of the Association of Southeast Asian Nations have goods to enter China after the tax reduction. "Early Harvest" program is the "China-ASEAN Framework Agreement on Comprehensive Economic Cooperation" to start the first cooperation project, and this was the ultimate point of China-ASEAN Free Trade Area, were experts have beyond Mexico and Central and Eastern Europe the vitality of a free trade zone .

For as the world factory in China, ASEAN has unusual significance. Traditionally played by the ASEAN countries is China's "raw state" role around the "Malacca dilemma" in the latest discussion to let people realize that for China, ASEAN countries also play an important "channel state" role. Select either "Kra Isthmus program" also or "China-Burma oil pipeline idea," All this shows that ASEAN is indeed a special geographical position of solving the urgent problems of supply chain security.

Another prospect is a world-class consumer market of China as a potential investment and output to the attractiveness of ASEAN will eventually become the center of gravity to promote the China-East Asia, re-distribution and supply chain industry, a key factor in restructuring. This is an economic process across two generations, birth is the basic force for East Asian common market. In 2003, the mechanical and electrical products accounted for merchandise trade between China and ASEAN about 50%, and a large number of import and export of each other. This phenomenon shows that the two sides in the industry chain in different positions, and highly complementary. China and ASEAN regional economic integration, has a bright future.

Southeast Asia has not only become the future plight of a pivot lever themselves are consciously become a major force in the country game. Japan and South Korea competing channels of strategic resources, the ASEAN Free Trade Area of the United States to request intervention from the distribution of benefits and health division within ASEAN, and ASEAN countries in the "2 + X" mode for the new choice ... ... more and more of the factors that are affecting the future of a free trade zone. Southeast Asian countries in general, "the north-bound", it is also constantly looking around to squeeze into the other board, to prove he was not the so-called "China's vassal."

This is a complicated game. Though too much, cross the free trade agreement will only make rules of origin, production standards or terms of trade standards is more complex, weakening as the existence of production networks without borders based - economies of scale, but before entering the orbit, which may be All parties have to go through a phase. This may be necessary to co-market the price, but it was worth.

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