BIZCHINA> Review & Analysis
|
BIZCHINA> Review & Analysis
|
|
Regional design in Asia-Pacific
By Pang Zhongying (China Daily)
Updated: 2009-11-10 09:05 As a result of the global financial crisis, conditions for cooperation in the Asia-Pacific region have increased rather than diminished. First, China will soon surpass Japan in nominal GDP, becoming the second-largest economy in the world. The combined GDP of China and Japan accounts for about one-sixth of the world economy and the economic aggregate of East Asia will reach one-fifth of the world's total, if the Republic of Korea (ROK) and the Association of Southeast Asian Nations (ASEAN) are included. Considering the relatively high growth in China and other Asian economies and the shrinking or slow growth of the US economy in the future, the importance of East Asia in the global economy will keep rising. Second, intra-regional trade in East Asia continues to grow and has exceeded the trade volume with the US and other regions respectively. China, Japan, the ROK and ASEAN have become each other's largest trade and investment partners. East Asia has seen de facto integration fueled by markets and private players. Third, the importance of the US market to East Asian countries is decreasing. After the financial crisis, the US has to increase savings and reduce spending. China and Japan, which have huge holdings of US Treasury bonds, have to consider whether they should continue to support the current economic system which is centered on the US, given the US dollar's devaluation as a result of increased money being printed. Fourth, the positive role of ASEAN in promoting East Asian regional cooperation has been recognized and supported by regional powers, including China. The ratification of the ASEAN Charter in December 2008 offers the legal basis for establishing an "ASEAN Community". ASEAN has reiterated that an "ASEAN Community" with political, security, economic and cultural aspects as the main pillars would be set up as scheduled by 2015. If the "ASEAN Community", with great potential, takes shape, it will further promote East Asian regional integration. Fifth, no single country can address various global issues, as Hillary Clinton, the US secretary of state, has acknowledged: "America cannot solve the most pressing problems on our own." Regional frameworks and regional mechanisms are very necessary to resolve these issues. Currently, the various regional forums and mechanisms in Asia are basically oriented at resolving issues. The "ASEAN 10 Plus 3" meeting emerged to cope with "the Asian Financial Crisis"; "the Shanghai Cooperation Organization (SCO)" is the outcome of responding to new regional safety challenges after the collapse of the Soviet Union; "the Six-Party Talks" are designed to realize a nuclear-free Korean Peninsula; the Chiang Mai Initiative aims at preventing financial crises. Multiple issues, such as the energy and food crises, climate change and security threats, will further impel East Asian countries to resort to more multilateral solutions. Sixth, regional integration processes in Europe, South America and Africa have made progress, exerting pressure on East Asia, which is less integrated. If Asia doesn't engage in genuine cooperation, it will be left at a disadvantage in the new world economic system. Seventh, when the new ruling party of Japan declared that it would pursue a more "independent" economic and foreign policy, the Obama administration had had to change its approach, claiming that the US also wants to participate in an "East Asian Community". If consensus on regional cooperation can be reached, it will not only present a fundamental solution for coping with regional peace and security challenges, but also provide a fresh approach to exploring new growth models and new regional division of labor in East Asia. For a long time, confined by historical factors and ground realities, the Asia-Pacific region lacked an inclusive multilateral regional architecture, which is necessary and important. The Australian and Japanese authorities are advocating their regional visions of an "Asia-Pacific Community" and an "East Asian Community" respectively. In my view, it is better to let all the existing regional cooperation mechanisms coexist and exploit each other's advantages.
While deepening Sino-Asian and Sino-US ties at the same time, China, like Japan, also confronts the problem of how to balance the two relationships. But, unlike Japan, China doesn't have the problem of an "Asian identity". China has been an Asian country all along and an inalienable part of Asia. China is not only an East Asian country but is also contiguous to Central Asia, South Asia and North Asia and has close interaction with these regions. Therefore, Asia (not just East Asia), as a region surrounding China, is always the "prime" agenda of China's foreign policy. It is expected that China will continue to maintain and expand positive and comprehensive cooperation with the US and at the same time, deepen bilateral and multilateral relations with neighboring Asian countries. China will continue to participate in various forums and mechanisms, with the aim of further deepening and developing them. China could encourage and support closer and effective interaction of existing regional cooperation and integration initiatives to establish a web or network of regional cooperation and integration in Asia and beyond. China should coordinate with other powers to play a collaborative role and avoid exclusive regional cooperation targeting a third party. The author is a professor at the School of International Studies, Renmin University of China.
(For more biz stories, please visit Industries)
|
|||||||
