continents

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

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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$)