This document discusses Asian regionalism, focusing on ASEAN and Northeast Asia. It provides an overview of ASEAN, including its founding, expansion, and key economic agreements. ASEAN has 10 member states and over $3 trillion in collective GDP. The document also examines Northeast Asia, covering the political difficulties in the region due to historical tensions. However, it notes the strong economic interdependence between countries like China, Japan, and South Korea today, with China and Japan being each other's top trade partners worth over $1 billion daily.

1. Asian Regionalism?
•ASEAN
•Northeast Asia

2. Outline
• Economic development
– Flying geese, falling geese
• Economic interdependence
• ASEAN
• Northeast Asia

3. Postwar Development I
• Flying geese pattern of economic
development, by industry

4. Postwar Development II
• Flying geese pattern of economic
development, by region

5. Trade Interdependence

6. ASEAN: overview
• Association of Southeast Asian Nations
• 10 member states
– Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Philippines, Singapore, Thailand, &
Vietnam
• home to 667 million people
• collective GDP of more than US$3 trillion

7. ASEAN: founding (1967)
• 5 founding members:
– Thailand, Malaysia, Singapore, Indonesia,
Philippines
• Bangkok Declaration of 1967:
– accelerate economic growth
– promote regional peace and stability
– contain the spread of communism

8. Arc of Containment

9. End of Cold War
• ASEAN Free Trade Area agreement was
signed at ASEAN summit in 1992
• comprehensive program of regional tariff
reduction
• program later broadened and accelerated
• reaffirmed during Asian Financial Crisis of
1997-98

10. Expansion of ASEAN
• later members all agreed to join the
ASEAN Free Trade Area as well
• 1995: Vietnam
• 1997: Laos
• 1997: Myanmar
• 1999: Cambodia

11. ASEAN: External Links
• A joint forum with Japan was established
in 1977
• A cooperation agreement with the
European Community was signed in 1980
• ``ASEAN + 3”: regular series of meetings
at the cabinet and head-of-government
levels with Japan, China, and South Korea
since 1997

12. ASEAN Trade in Goods 2019

14. Northeast Asia
• Japan, South Korea, North Korea
• Mainland China, Hong Kong, Taiwan
• Mongolia, Russia

15. Northeast Asia
• Compared with Southeast Asia and West
Europe, Northeast Asia has lagged behind
– in developing mechanisms or institutions
– of coordination, cooperation, or integration
• especially considering the immense
economic potentials in the region
– natural resources
– human infrastructure

16. Political Difficulties
• Legacies of World War II
– Japanese atrocities in Pacific Asia
• Legacies of Cold War
– partition of Korea

17. Political difficulties
• Territorial disputes between
– Japan and China
– Japan and South Korea
• “Sea of Japan” or “East Sea”?
– Japan and Russia
• mutually reinforcing suspicions

19. Current Status
• Washington-Tokyo-Beijing triangle
– PRC & Japan regard relationship with each
other as 2nd in importance to that with US
• Japan plays significant role in integrating
PRC into world economy
• Japan has a vital interest in PRC’s
development and stability
• Economic interdependence

20. PRC’s Trade Partners 2018
• Japan is mainland China’s second largest
trade partner and import source
• Total trade volume nearly $1bn per day
• Total imports from Japan: US$166 billion
– 9% of mainland China’s total imports
• Total exports to Japan: US$137 billion
– 6% of mainland China’s total exports

22. Japan’s Trade Partners
• Mainland China is Japan’s largest trade
partner, largest source of imports, and 2nd
largest destination of exports
– US$297 billion trade in 2017
– compared with $207 billion trade with US
• PRC (including Hong Kong) became
Japan’s largest trade partner in 2004
– surpassed the US for the first time

23. Japan’s Direct Investment
• Largest investment source outside of
greater China before 2013
• Over 30,000 Japan-invested
enterprises
• Directly or indirectly employ over 10
million people

24. 0
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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Japan
US
Foreign Direct Investment in
Mainland China (Billion US$)