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A distinction may be made between the “full APEC” and “APEC Proper”; the latter should just cover member countries/regions of the Asia-PaciÀc rim, thus excluding the North and South American member countries. Within APEC proper, however, we may distinguish between North APEC and South APEC, using Hong Kong as the geographic dividing line. Implications of WTO accession The key question involved is, therefore, in what way China’s entry into WTO in December 2001 may help to promote economic integration between China as a North APEC member and South APEC, ASEAN countries in particular. We will focus on trade and investment relations, in broad terms, in our discussion . Before we proceed, a few points should be made from the foregoing discussion1 about the economic imperatives for China to yield to Western technological supremacy and the possible pattern of Western intrusion into the Chinese banking industry, following WTO accession. * The Àrst half of this chapter draws from the ending part of a broader monograph “China in the WTO and the prospects for regional economic integration—with special reference to the proposed ASEAN 10+1 FTA”, which was presented to the Asian Development Research Forum (ADRF) Conference co-sponsored by the Thailand Research Fund and Canada’s International Development Research Center (IDRC) and held in Bangkok, 2–3 December 2002. ConsultADRF Secretariat (http://www.adrf.org), Asian Transition: Proceedings and Full Papers, Bangkok, 2004 for details. An epilogue is added (in 2011) to extend the analysis to year 2010, i.e., the year of the formal launch of ASEAN 10+1 FTA. The last part of the chapter, newly written, discusses the regionwide implications of the signing of the Economic Cooperation Framework Agreement (ECFA) between the Chinese mainland and Taiwan on 29 June 2010. 12 China’s WTO Accession, ASEAN 10+1, and ECFA “Open Regionalism” at Work* 352 Pax Sinica First, in light of China’s massive industrialization and modernization drive, it is clear that the country will continue to enhance technological supplies from such advanced countries as Japan, the United States and Western Europe— dubbed the Triad. At the same time, with China’s own industrial system being increasingly maturing and diversiÀed, we may also expect increasing intraindustrial trade between China and these major trading partners. Second, WTO accession has already brought about clear signs of a drastic increase in China’s FDI intake,2 especially from major global conglomerates of Western origin, continuing the upsurge since 1992 when the Chinese strategy of “market-for-technology exchange” for courting foreign investment was promulgated. The Japanese car giants, Toyota and Nissan, hitherto wary of the Chinese investment environment for various reasons, are now all poised to rigorously move into the domestic market to compete with Volkswagen and General Motors.3 Many similar foreign tariff-jumping import-substitution manufacturing investment initiatives are coming into the stream as well. Third, enhanced trade and investment relations with the outside world also imply concomitant expansion in related foreign banking and Ànancial activities in China. A good but nonetheless quite obscure case in point is that Hong Kong-based Japanese banking and Ànancial institutions have helped to Ànance an overwhelming proportion of the SAR’s FDI in China over the years, because the bulk of industrial materials, machine and equipment, as well as transport vehicles needed for their venture on the mainland are imported from Japan.4 It is also for this reason that foreign-invested banks of Japanese and Hong Kong origin presently have the strongest presence in China, being responsible for import/export Ànancing and foreign exchange clearing for their export manufacturing clientele in China.5 Thus, with the accelerated FDI inÁux from Japan and the US following China’s WTO entry, it can only be expected that Ànancial Áows between China and North APEC countries will take on greater momentum than with anywhere else. To add on the weight of the strengthened economic integration between China and North APEC at large (the US included), there is of course the highly visible upsurge of Chinese exports since WTO accession. From January to September 2002, total Chinese exports have increased by nearly 20% year-onyear , and for October 2002 alone, the increase amounted to an even more spectacular 32%.6 The exports are all predominantly destined for such high-income markets as Japan, the US, and the European Union. China’s WTO Accession, ASEAN 10+1, and ECFA 353 Prospects for ASEAN 10+1 Viewed this way, what will the...

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Additional Information

ISBN
9789882208773
Related ISBN
9789888083824
MARC Record
OCLC
818851614
Pages
400
Launched on MUSE
2012-12-20
Language
English
Open Access
No
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