ASEAN-China Economic Relations into the 21st Century

Abstract

In recent years, the Chinese economy has grown dramatically largely as a result of China commitment to open up its economy to the rest of the world and adopt more market-oriented policies. How ASEAN-China economic relations develop depends on many factors including the ability of either or both to attract FDI which will induce the correct path of industrial restructing. There is reason to believe that as both ASEAN and China move on to higher tiers of manufacturing, there will be enough room for complementarily in their economic relationship via greater intra-industry trade, greater FDI to each other, and spillover effects arising from the actions of third parties.