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and promoted regional economic co-operation. China. and never giving in to pressure from major powers nor entering into alliance with any major power or power block. tensions still exist between Tibet and China. China has emerged as a regional power with robust anti-access/area denial (A2/AD) capabilities designed to disrupt U. Anti-access (A2) strategies aim to prevent US forces entry into operations.S. stands ready to make unremitting efforts to ensure world peace and development. China’s policies claim mutual cooperation China claims that it has unswervingly pursued an independent foreign policy of peace. including the offshore territory. The policy is based on the following main elements: Maintaining independence: Abiding by principles in international affairs. opening and modernization efforts. worked diligently for regional peace and stability. With the help of its trade and foreign policies China aims to create an economic barrier which other Global powers of the world cannot penetrate. Opening policy: China is open to both developed and developing countries and has engaged in extensive international cooperation on the basis of equality and mutual benefit to promote common development. adversaries have regularly attempted to deny one another freedom of movement on the battlefield. . Past forms of anti-access served to both protect friendly forces. on land. the world's largest developing country and a permanent member of the UN Security Council. Area Denial operations thus include actions by an adversary in the air. determining their position and policies in accordance with the merits of each case. The basic objectives of the policy center on safeguarding national independence and state sovereignty. and creating an international environment favourable to its reform. and on and under the sea to contest and prevent US joint operations within their defended battle-space. and the establishment of a new fair and equitable international political and economic order based on peace and stability. China has adopted a different strategy towards achieving its goals. The nation stands for fair and reasonable settlements of border and territorial disputes through negotiations and consultations. power projection in the western Pacific. Despite having a good neighbourly and friendly relations policy. as well as maintaining world peace and promoting common development.Anti Access Area Denial Throughout the history of warfare. and area-denial (AD) operations aim to prevent their freedom of action in the more narrow confines of the area under an enemy’s direct control. Good-neighbourly and friendly relations: China has vigorously advanced friendly relations with neighbouring countries. and prevent enemies from gaining positions of advantage.
especially of the Spratlys. Commercial Importance of Spratly Islands • The Geology and Mineral Resources Ministry of the People's Republic of China (PRC) has estimated that the Spratly area holds oil and natural gas reserves of 17. the control. Malaysia. the Philippines. natural gas. and these oil fields now account for fifteen percent of all petroleum consumed in the Philippines. Because of the economic. Brunei. and oil deposits on the islands and their nearby seafloor. Vietnam claims all Spratly Islands belong to a district. placing it as the fourth largest reserve bed in the world. Brunei claims a relatively small area including islands on Louisa Reef. the Republic of China. but only occupies one island and one shelf including Itu Aba (Taiping).The Disputed Islands in question • • • • • The Spratly Islands. North Vietnam's prime minister. then. of the Khanh Hoa Province. the Republic of China (Taiwan). Brunei. Taiwan claims all the Spratly Islands. disputed between the People's Republic of China. and they form a distinct municipality in the province of Palawan. and the Republic of China The Scarborough Shoal. In addition to the People's Republic of China and Vietnam. and Vietnam. and the Republic of China There are minerals. The Republic of China (ROC) named 132 of the South China Sea Islands in 1932 and 1935. of the Phuoc Tuy Province. The PRC has predicted that the South China Sea holds combined fishing and oil and gas resources worth one trillion dollars. Indonesia's claims are not on any island. military. disputed between the People's Republic of China. the Philippines. In 1958. The Philippines. sent a diplomatic note to Zhou Enlai. first in 1973. only occupies eight islands. however. disputed between the People's Republic of China. disputed between the People's Republic of China. within the Spratly Islands territory. the People's Republic of China(PRC) issued a declaration defining its territorial waters which encompassed the Spratly Islands. disputed between the People's Republic of China and the Republic of China The Macclesfield Bank. has been in dispute by China and several Southeast Asian countries such as Vietnam from the mid-20th century onwards. the Republic of China. Malaysia occupies three islands on its continental shelf. and the Philippines claiming part of the archipelago The Paracel Islands. and the Philippines also claim and occupy some islands. On the other hand. with Malaysia. The Philippines claims most of the Spratlys and calls it the Kalayaan Group of Islands. and Vietnam The Pratas Islands. The first major Philippine oil discovery occurred off the coast of Palawan. stating that The Government of the Democratic Republic of Vietnam respects this decision. Phạm Văn Đồng. but on maritime rights. as compared to the 13 billion tons held by Kuwait. • • • .7 billion tons. China has indisputable sovereignty of the South Sea and China has sufficient historical and legal backing. An additional motive is the region's role as one of the world's most productive areas for commercial fishing. and transportational importance.
Taiwanese businesses have invested an estimated $150 billion in the mainland since 1988. which has contributed to China being the 3rd largest trading partner with ASEAN. The market access commitments made by China leading to its accession to the WTO will increase the entry of foreign goods. rejected the very existence of the consensus. China was Taiwan's largest trading partner. Increased exports from China to the region will also lower the import prices of its trading partners and improve their competitiveness. behind Japan and the EU. challenges would be countries that produce similar products will face increased competition for market share in third markets. Negotiations between the two for an Economic Cooperation Framework Agreement that ease trade restrictions even further was passed earlier this year.• The region is also one of the busiest shipping lanes in the world. China entered the World Trade Organization (WTO) in 2001 and. The most important impact will be felt by the Chinese economy itself as it is opened up to foreign competition and as its exports are given greater protection by WTO rules which will benefit both China and its trading partners. Taiwan's former president Chen Shui-bian. also overtaking U. Chinas Accession of WTO: China’s WTO accession will have major implications for China and present both opportunities and challenges for East Asia. . insurers. and other financial service providers to invest and work in both markets. in 2007. within a month." Bilateral trade between China and Taiwan in 2007 reached $102 billion. Referred to as the 1992 Consensus. twenty five percent of the world's crude oil passes through the South China Sea. Taiwan ranks in the top ten of China's trading partners. Continuing the conciliatory trend. Beijing says Taiwan is bound by the consensus reached in 1992 between the representatives of both governments in Hong Kong. Taiwan entered as "Chinese Taipei. China will continue the process of opening its markets to other countries’ exports. The People's Republic of China asserts that there is only "One China" and Taiwan is an inalienable part of it. Likewise. China and Taiwan have also agreed to allow banks. At the same time.S. China’s policy and regulations will become more transparent and accountable. Tanker traffic through the South China Sea is over three times greater than through the Suez Canal and five times more than through the Panama Canal. In 2009. To briefly study China’s Trade relations with its neighboring ASEAN Countries China and Taiwan: The two sides sharply disagree on a number of points but at the same time are making consolidated efforts to improve their trade relations as this would in turn have an impact on every other aspect. China will gain access to foreign technology and management know-how. The China-ASEAN Free Trade Agreement (CAFTA) is a series of economic agreements with ASEAN countries. He also continues to vow that Taiwan will not move toward political . however. firms and investments into the country heightening the level of competition. it states that there is only one China. Taiwan opened up one hundred of its industries to mainland investments. up from $8 billion in 1991. 30 percent of Taiwan's exports were sold to China. However. Despite intermittent diplomatic friction. With WTO accession. but it has a clear impact on the economic integration of China and ASEAN and East Asia. President Ma has called for increased cultural and educational exchanges with China. the cross-strait economic relationship has blossomed. CAFTA may not be comprehensive. but China and Taiwan can interpret that principle however they wish.
competing with the United States and Japan for pride of place. In every country. characterized by considerable ambivalence. arms. The economic effect of UN Resolution 1874. and regional leadership. North Korea's second nuclear test in May 2009 further complicated its relationship with China. and mushrooms. After Pyongyang tested a nuclear weapon in October 2006. textiles. The 1961 Sino-North Korean Treaty of Friendship. Kim Jong-Il.unification with China. have launched a number of antidumping cases. Bilateral trade between China and North Korea reached $2. passed after the . although not entirely. fruits. and the two nations have engaged in heated disputes over territorial boundaries. like its larger sense of national purpose. Japanese leaders are now more willing to cite China explicitly as a potential military threat. much of the political backlash from increased Chinese exports has been from companies that compete against imports from China. which has played a central role in the Six-Party Talks.79 billion in 2008. and main source of food. The major losers from Chinese exports are the companies and the workers who compete with the Chinese domestically or on foreign markets. ultimately. China has lent political and economic backing to North Korea's leaders: Kim Il Sung and his son and successor. however. Japan’s economic relations with China have deepened dramatically in recent years and continue to provide incentives for both governments to manage their problems. and other industries in which China has been successful and in industries in which Chinese competition is less well known. Japanese farmers have been especially effective at maintaining barriers to Chinese imports. China and Japan: The rise of China has clearly stirred Japan’s competitive impulses. Some of the most vociferous complaints have come from farmers who face competition from imports of much cheaper Chinese vegetables. The relationship largely. Japan has edged closer to the United States and strengthened ties with other regional partners. biggest trading partner. such as machinery components and plastics. and these moves are increasingly justified in reference to China. China has too much at stake in North Korea to halt or withdraw its support entirely. Since the Korean War divided the peninsula between the North and South. while at the same time insisting that Taiwan will not declare independence. At the same time. In Japan. China’s rise in importance both in Asia and globally since the 1970s has been driven by the rapid growth in its economy and trade Over the last decade China has become one of the top three export markets for most of the Asian countries. is defined by Japan’s use of China as a production base for its export industries—with many of its exports to China destined. The Chinese are "doing just what they have to do and no more" in terms of punishing North Korea. up 41. clothing manufacturers have lost out or shifted operations to China. experts say that China has reconsidered the nature of its alliance to include both pressure and inducements.3 percent compared to 2007. from India to Australia to Taiwan. the multilateral framework aimed at denuclearizing North Korea. Japan’s economic planners remain convinced that the nation’s economic well-being remains tied to continued trade and investment with China. but its posture toward China remains. and fuel. Firms dealing in electronics. China is now Japan’s largest trade partner. for markets in the United States and elsewhere China and North Korea: China is North Korea's most important ally. Cooperation and Mutual Assistance says China is obliged to defend North Korea against unprovoked aggression China has supported North Korea ever since Chinese fighters flooded onto the Korean peninsula to fight for their comrades in the Democratic People's Republic of Korea (DPRK) in 1950. historical issues. At the same time.
as indicated by a significant trade imbalance. the economy being highly dependant on exports. relations between Philippines and China were tense due to territorial disputes over the Spratly islands.second nuclear test in 2009. however in 1997 PLA navy vessels were sighted near the Mischief Reef. Investments by Japanese and Western Multinationals shape trade between Thailand and China as Japan holds large investments in Thailand China and Indonesia: Indonesia and China have a troubled history. importers retailers and consumers are benefiting from low cost Chinese goods. This entails that tariff barriers for certain product categories. Chinese and Thai firms collaborate in the motorcycle. China provides 80 percent of North Korea's consumer goods and 45 percent of its food. Recently leaders of Indonesia and China signed agreements on to establish a "strategic partnership" and open the way for more trade.25 billion trade deficit as an indirect Chinese subsidy given that North Korea cannot finance its trade deficit through borrowing. In 1995 the conflict was resolved.03 billion. which seemed like a drift from US. Until recently Philipines import of consumer goods from China was limited. Some experts see the $1. Since the early 90’s China has served as North Korea's chief food supplier and has accounted for nearly 90 percent of its energy imports. A bilateral FTA was signed and arms were purchased from China. such as several textiles and garment products will be fully dismantled. China views US as a major competitor with regards to trade with Phillipines Thailand and China: In 2001 Thai’s politicians displayed growing partnership China due to China’s growing importance as a trade partner. During 1990’s. Chinese imports amounted to $2. In about 10 years Thailand has gone from being the 8th larges trade partner to the 3rd with China shifting focus away from US and Japan. Thai’s exports include office machines and electronics. Chinese companies have shown particular interest in Indonesia's oil and gas sector. However currently China – Philippine relationship has moved towards co operation Phillipines has successfully exported electronics and also agricultural products to China. petroleum and organic chemicals and imports iron and steel from China. investment and maritime cooperation. Phillipines was the last ASEAN country to sign ASEAN China FTA. China has also helped Indonesia by providing relief at the time of Tsunami. China also gains economically from its association with North Korea. However cheaper Chines products have made its way through in the Phillipine markets. North Korea's economic dependence on China is rapidly increasing. which provides most of its food and energy supplies. telecommunication and automotive sectors. plastic. With the onset of a new free trade agreement. Trade with China is rapidly expanding. Thailands economy has grown since the dip in 1997 – 99. . is also not likely to be great unless China cooperates extensively and goes beyond the requirements of the resolution. China however has wiped out Phillipines textile and foot wear industries and also Christmas ornaments industry. Pyongyang is economically dependent on China. Phillipines and China : Phillipines has been closely allied with US due to security received while it views China as a threat viewing it as an expansionist power trying to claim sovereignty over South China Sea by building its Millitary force. growing numbers of Chinese firms are investing in North Korea and gaining concessions like preferable trading terms and port operations. and also primary goods like crude rubber. where in Indonesia displayed a little hesitation attached to the concern that cheaper goods from China will threaten the future of their manufacturing industries. while exports to China including coal and iron ore totaled $750 million. By some estimates.
so that China does not and cannot dominate. and plays an important role in facilitating trade between the two cities.. Brunei’s economy is highly dependent on oil production major exports to China include mineral fuel consisting of mainly petroleum crude. press. FTA will also make cooperation among Vietnam. telecommunications equipment. and health of the two countries. tourism and agriculture.5 per cent growth. The planned Dongxing-Mong Cai economic zone. In 1996. Furthermore China also provided aid to Cambodia Singapore and China: Singapore is a major commercial and financial Center. agriculture products and machinery from China Vietnam and China : Vietnam was expecting both opportunities and challenges brought about by the FTA. Toward these ends. polyethylene. it’s the biggest leap so far between both countries. vegetables. and the areas for cooperation kept expanding. China and other ASEAN members in production of a particular product easier. household refrigerators. and there were exchanges of visits between the parliaments. China and Cambodia have seen continuous expansion of contacts and cooperation in various areas. investment promotion and protection. electric device. Seventy-eight percent of Singapore’s population is ethnically Chinese. seafood. The Chinese market. Over the recent years. perceive China as risky because of its murky regulatory and legal environment. refined oil. They have signed agreements on cooperation in culture. Brunei imported garments. its exports to China mainly include rubber. plywood. In 2008 Vietnam cut exports of Coal to China by half to meet its own demands. armies. and in 2000 set up an economic and trade cooperation committee. like others. steels. As China becomes more powerful. growth. and room for maneuver. and office machines. . so ethnic affinities have to be factored into Singapore’s relations with China. particularly in the cultural and educational spheres. and minerals Cambodia and China: China and Cambodia enjoy time-honored traditional friendship Recent years have seen fast development of economic and trade relations between China and Cambodia. is difficult to penetrate. expressways and inland cargo deport to facilitate trade and investment among five localities of China and Vietnam. especially in the fields of fisheries. and lacks a reliable legal regime. they will do everything they can to ensure a continued balance of power in the region. China's exports to Cambodia are textiles. cashew nuts. allows more free movement of capital.Brunei and China: Trade between Brunei Darussalam and China stood at 93. petrochemicals. Singapore was one of the last countries in Southeast Asia to establish diplomatic relations with the People’s Republic of China. However there is still room for further cooperation. This would call for speeding up the construction of infrastructure at border gates including bridges. lacks transparency. people and cargo. Singaporean leaders will make further adjustments to maintain the country’s independence. The three largest categories among Singapore’s imports from China are electrical and electronic machinery and appliances. fruits. the Singaporeans have learned. the two countries signed the agreement on trade. halal (products) and agriculture. mostly information and communication technology products. and pharmaceuticals to China. freezers. metals machinery and building materials and its imports from Cambodia are rubber. Singaporean leaders see the United States as both the principal stabilizer in the event of internal Chinese unrest. panels and furniture. new pattern of cooperation for both sides. Singapore exports a large proportion of electronic components and parts. Singaporeans. However FTA brings tougher competition for Vietnamese companies as there are similarities in manufacturing products between Vietnam and the other countries within the FTA. Despite the rapid growth in their investments in China.
Bilateral cooperation plays a crucial role in deepening economic ties among countries by eliminating obstacles and formulating enabling rules within a broad institutional framework. Bilateral trade will remain robust. transportation. energy. science and technology. steel and textile products. Co-operation between the two countries in tourism. recreation. and the areas of investment have expanded to include such industries as manufacturing. while Myanmar imports range from natural rubber to raw wood. China-Malaysia relations will enter a new phase of development characterized by an unprecedented level of economic interdependence. and finance has increased steadily. furniture. agricultural products and handicrafts. Laos’ major exports to China are mineral resources. services and finance. They have signed several agreements.Malaysia and China: Malaysia is now China’s largest trading partner among the ASEAN. processing. given the long established links and competitively priced quality products from Malaysia. real estate. and selected agricultural goods that may satisfy Malaysian demand. China produces large quantities of clothing and textiles products. Total bilateral investments were close to $4 billion. Economically. education. Myanmar is important for China as a trading outlet to the Indian Ocean for its landlocked inland provinces of Yunnan and Sichuan. economic complementarities and market expansion. China and Laos: The two countries have similar trade and investment policies. China and Myanmar: Chinese imports to Myanmar typically focus around oil. The basic reason for the rapid expansion of economic and trade relations between China and Malaysia since the establishment of diplomatic relations lies in mutual political trust. including integrated circuits and semiconductors and palm oil. Light industrial goods. while the main goods imported from China to Laos are electrical equipment . Twoway ties will be further enhanced by the trend towards regional co-operation in East Asia especially under the constructive framework of CAFTA. communication. granting Chinese companies’ contracts in the construction of one of the country's biggest dams. China imports electrical and electronic components. As CAFTA reaches full maturity. an aluminum smelting plant and a bridge.
Chinese companies are playing a vital role in shaping the economies of the ASEAN countries. thus raising the importance and dependence of other countries on China. South Korea and Taiwan have reasons to be alarmed at the pace of Chinas growth but there is very little they can do to stop the sleeping dragon from reaching its full potential. Countries within the FTA can produce different parts of a product based on their strength so that consumers could enjoy a higher-quality but lower-cost finished product. Countries like Japan.Conclusion China uses imported goods such as machinery. The trade surplus would increase year after year which would ensure that China develops its capabilities and the cycle thus continues. The repercussions of disagreeing with China would have detrimental effects on the economies of these countries. The lack of per capita resources in China is being leveraged by the import of raw materials from the ASEAN countries. The domestic and export demand is being fulfilled by such imports which cost much lesser than the export of finished goods to the same countries. The cooperation in the manufacturing process would not only help businessmen tap the markets of China and ASEAN countries. fats and oils. The fate of the ASEAN countries is slipping slowly from their own hands to those of China. The domestic companies would not only find it difficult to compete with the power houses of china but also lose the protection they enjoyed when the imports where not as high. Over the next coming years China would not only be a superpower but also have the power to influence these countries. rubber and organic chemicals to produce low-cost products and sell them mainly to the United States and the European Union. plastics. China emerged as a global economic force leading the growing interdependence between ASEAN and China The expanding role of china with respect to trade with other neighbouring countries has long term implications. This would result in the unattractiveness of other countries as a viable foreign investment option. China believes that once it has control over and co-operation with its neighbours it can then block USA and other major global players from dictating terms to them and the locus of power would shift from the West to the East . but also pave the way for them to enter other markets such as the European Union and Africa. This in turn gives China an upper hand when negotiating the disputes that have plagued the region since time eternity. minerals and fuels.
20 Issue 4.com China Daily People. Center for Strategic and Assessments China's maritime aggression should be wake-up call to Japan http://shadow..cn Ministry of Foreign Affairs of People Republic of China Asia Times Centre of Malaysian Chinese studies http://www. Dec2008.foreignpolicy. Korean Journal of Defense Analysis.html Other Articles • • • • • • • The New York Times E to China. 06/06/2007 (Ebsco) Non War Section: WORLD NEWS & ANALYSIS Source: Aviation Week & Space Technology.html Battle of the South China Sea http://online. The (DC). 168 Issue 10. 10p 25. Vol.wsj.rand.S.Bibliography: Articles from EBSCO: • • • ‘China warns U. Articles from Think Tanks • • • • CSB – Center for Strategic and Budgetary Assessments ASEAN-China Expert Group on Economic http://www.S.html .wsj.html Japan caves in on China. Japan against missile defense’ Source: Washington Times.cfr. Vol.com/posts/2010/09/20/chinas_m be_wake Cooperation Budgetary Articles From Wall Street Journal • • • Battle of the South China Sea http://online. p295-304.com.com/article/SB10001424052748703977004575392631691738648. p242p. looks to U.com/article_email/SB10001424052748703384204575511033698480628 -lMyQjAxMTAwMDIwNjEyNDYyWj.wsj. 3/10/2008.com/article/SB10001424052748703977004575392631691738648. Krepinevich.org/paf/ Why Air Sea Battle? By Andrew F.org/publication/11097/chinanorth_korea_relationship. http://online. 1 Color Photograph (Ebsco) China's role in Asia: implications for the United States.