China and Asian regionalism: Challenge and policy choice

Abstract

Regionalism has become an interesting phenomenon in Asian international relations. Driven by fast growing trade and investment, Asian countries have developed variegated patterns of economic co-operation and a complex level of interdependence among themselves. Although the growing Asian regionalism is very much an economics-driven process, it has profound impacts on regional political organization. This analysis examines Beijing's changing attitudes toward Asian regionalism and its policy choice in the regional economic integration. It is argued that the integration of the Chinese economy into the regional structure is promoted by the government as well as driven by market dynamics. Although Beijing has let the Chinese economy develop into the regional 'flying geese' structure, the best policy choice for China, as many Chinese scholars have argued, would be a three-circle strategy of integrating into the world economy and a strategy of 'market for technology' in regional economic co-operation. This analysis also discusses the regional political obstacles impeding co-operation across national borders. It is argued that healthy bilateral relations and more political will toward regional multilateralism on political issues would be instrumental for future regional prosperity and stablity in Asia.