An Analysis of the Evolving ASEAN-China Trade Linkages

34 Pages Posted: 27 Apr 2015  

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Kevin C. Chua

Shandong University

Monica M. Melchor

Asian Institute of Management - Policy Center

Date Written: May 1, 2015

Abstract

Whether China is a strategic trade partner or competitor to the ASEAN economies has remained unclear five years since the implementation of the ASEAN-China Free Trade Area in January 2010. The ASEAN economies and China are in an interesting position as both are experiencing growing bilateral trade while simultaneously competing in the production and export of major goods to similar trade destinations. This paper reviews Chinese-ASEAN trade statistics in order to provide an assessment of the economic importance of China to ASEAN and vice versa. It seeks to understand whether the trade relations between the two regions are evolving to be competitive or complementary. It discusses the restructuring regional production chain, citing anecdotal evidences, to illustrate opportunities for ASEAN economies to promote reciprocity and mutual growth with China. This paper argues that managing the competition and enhancing the complementarities could be an effective response in dealing with the realities of an advancing ASEAN-China economic integration and promoting mutual and broadbased gains.

Keywords: ASEAN, China, economic integration, comparative advantage, international production chain

JEL Classification: F13, F14, F15

Suggested Citation

Mendoza, Ronald U. and Chua, Kevin C. and Melchor, Monica M., An Analysis of the Evolving ASEAN-China Trade Linkages (May 1, 2015). Available at SSRN: https://ssrn.com/abstract=2599111 or http://dx.doi.org/10.2139/ssrn.2599111

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108
Philippines

Kevin C. Chua

Shandong University ( email )

27 Shanda Nanlu
South Rd.
Jinan, Shandong 250100
China

Monica M. Melchor

Asian Institute of Management - Policy Center ( email )

Eugenio Lopez Foundation Bldg
Joseph McMicking Campus, 123 Paseo de Roxas
Makati City
Philippines

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