1. Asian Regionalism?
ASEAN
Northeast Asia

2. Outline Economic development Economic interdependence ASEAN
Flying geese, falling geese
Economic interdependence
ASEAN
Northeast Asia

3. Postwar Development I
Flying geese pattern of economic development, by industry

4. Postwar Development II
Flying geese pattern of economic development, by region

5. Trade Interdependence

6. ASEAN: overview Association of Southeast Asian Nations
10 member states
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, & Vietnam
home to 642 million people
collective GDP of US$2.8 trillion

7. ASEAN: founding (1967) 5 founding members:
Thailand, Malaysia, Singapore, Indonesia, Philippines
Bangkok Declaration of 1967:
accelerate economic growth
promote regional peace and stability
contain the spread of communism

8. Arc of Containment

9. End of Cold War ASEAN Free Trade Area
initiated at ASEAN summit in 1992
comprehensive program of regional tariff reduction
program later broadened and accelerated
reaffirmed during Asian Financial Crisis of

10. End of Cold War Expansion of ASEAN 1995: Vietnam 1997: Laos
1997: Myanmar
1999: Cambodia

11. ASEAN: External Links A joint forum with Japan was established in 1977
A cooperation agreement with the European Community was signed in 1980
``ASEAN + 3”: regular series of meetings at the cabinet and head-of-government levels with Japan, China, and South Korea since 1997

12. ASEAN: Trade Partners

13. Net Inflow of FDI to ASEAN

14. Northeast Asia Japan, South Korea, North Korea
Mainland China, Hong Kong, Taiwan
Mongolia, Russia

15. Northeast Asia
Compared with Southeast Asia and West Europe, Northeast Asia has lagged behind
in developing mechanisms or institutions
of coordination, cooperation, or integration
especially considering the immense economic potentials in the region
natural resources
human infrastructure

16. Political Difficulties
Legacies of World War II
Japanese atrocities in Pacific Asia
Legacies of Cold War
partition of Korea

17. Political difficulties
Territorial disputes between
Japan and China
Japan and South Korea
“Sea of Japan” or “East Sea”?
Japan and Russia
mutually reinforcing suspicions

19. Current Status Washington-Tokyo-Beijing triangle
PRC & Japan regard relationship with each other as 2nd in importance to that with US
Japan plays significant role in integrating PRC into world economy
Japan has a vital interest in PRC’s development and stability
Economic interdependence

20. PRC’s Trade Partners
Japan is mainland China’s second largest trade partner and import source
Total trade volume nearly $1bn per day
Total imports from Japan: US$166 billion
9% of mainland China’s total imports
Total exports to Japan: US$137 billion
6% of mainland China’s total exports

22. Japan’s Trade Partners
Mainland China is Japan’s largest trade partner, largest source of imports, and 2nd largest destination of exports
US$297 billion trade in 2017
compared with $207 billion trade with US
PRC (including Hong Kong) became Japan’s largest trade partner in 2004
surpassed the US for the first time

23. Japan’s Direct Investment
Largest investment source outside of greater China before 2013
Over 30,000 Japan-invested enterprises
Directly or indirectly employ over 10 million people