The Politics of China-ASEAN Economic Relations: Assessing the Move Toward a Free Trade Area

This article examines the strategic and diplomatic aspects of China’s decision to form a Free Trade Area (FTA) with the Association of Southeast Asian Nations (ASEAN) in November 2001. An FTA represents one significant step forward in China’s economic diplomacy toward ASEAN, considering China’s involvement in other venues of regional economic affairs. An in-depth reading of the policy rationale contained in the Joint ASEAN-China Expert Study Group’s report shows that the FTA decision resulted from a largely diplomatic-political imperative on the part of China. Nonetheless, movement toward an FTA came about after studious Chinese efforts over a decade to win over ASEAN’s trust. In proposing the FTA, China pursues two strategic goals: development of its southwestern provinces, and competition with Japan in terms of demonstrating leadership in regional economic affairs.