Skip to main content Accessibility help
×
Hostname: page-component-7479d7b7d-k7p5g Total loading time: 0 Render date: 2024-07-14T15:19:41.175Z Has data issue: false hasContentIssue false

8 - Evolution of Institutions and Policies for Economic Integration in East Asia: The Rise of China and Changes in the Regional Order

Published online by Cambridge University Press:  21 October 2015

Yoshihiro Otsuji
Affiliation:
GRIPS
Kunihiko Shinoda
Affiliation:
Japan Oil, Gas and Metals National Corporation
Get access

Summary

The signing of the Plaza Accord on currency alignment in the mid-1980s marked the beginning of substantial progress toward genuine economic integration in East Asia in the decade that followed. Multinational companies became established in the region and new business clusters were formed. Progress was also made in terms of systems and policy: efforts were made to liberalize trade and put in place a set of rules that would encourage regional economic integration. A number of Free Trade Agreements (FTA) and Economic Partnership Agreements (EPA) have been signed, and we can be optimistic that economic integration on the systems front will continue in the years to come.

This chapter discusses the game-changing effects of China's increased involvement in the East Asian economic integration process since it joined the World Trade Organization (WTO). We look at how the Association of Southeast Asian Nations (ASEAN) and Japan have responded to date, and consider how they ought to respond in the future.

WTO MEMBERSHIP PROMPTS GREATER CHINESE INVOLVEMENT

How and when did China become fully integrated into the East Asian regional economy, involved diplomatically not just in bilateral but also multilateral efforts? For many years, Japan and ASEAN were the main drivers of de facto economic integration in East Asia. This began to change after China joined the WTO in 2001. China opened FTA negotiations with ASEAN soon after, and became much more directly involved in the regional economic integration process, calling for preliminary studies on an FTA involving ASEAN+3 (Japan, China, and South Korea).

Until the Asian currency crisis of the late 1990s, the main hubs for regionalization in East Asia were Japan and ASEAN. After World War II, the countries that would later form ASEAN passed tough laws regulating foreign investment and attempted to achieve import substitution through steep tariffs. When this approach reached a dead end, the ASEAN countries shifted to an export-driven model of industrialization. It was around this time, with the value of the yen soaring following the Plaza Accord in 1985, that Japanese companies, particularly in the electronics sector, began to make serious investments in ASEAN in order to maintain their international competitiveness.

Type
Chapter
Information
ASEAN-Japan Relations , pp. 135 - 159
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×