APEC and the Rise of China

Foreword......Page 8
List of Contributors......Page 10
THE APEC PROCESS......Page 16
THE RISE OF CHINA......Page 18
NOTES......Page 26
Part I. Overview of Issues......Page 28
ABSTRACT......Page 30
INTRODUCTION......Page 31
ONE “WESTERN/AMERICAN/STRUCTURAL” DESIGN (1989–1993)......Page 34
TWO COMPETING DESIGNS: “WESTERN/AMERICAN/STRUCTURED” VS. “ASIAN/CHINESE/PROCESS-ORIENTED” (1994–1995)......Page 37
ONE “ASIAN/CHINESE/PROCESS-ORIENTED” DESIGN (1996–2000)......Page 42
ONE (“ECONOMIC”) AND A HALF (“SECURITY”) DESIGN (SINCE 2001)......Page 45
WHAT FUTURE FOR APEC?......Page 48
NOTES......Page 52
ABSTRACT......Page 60
INTRODUCTION......Page 61
APEC IS NOT AN ASIA-PACIFIC ECONOMIC COMMUNITY......Page 63
MULTILATERAL INSTITUTIONS......Page 65
CHINA’S ATTITUDE......Page 68
ASEAN’S CENTRE STATUS IS GUARANTEED BY US’S NEW ASIA-PACIFIC STRATEGY......Page 72
THE TRAJECTORY OF THE REGIONAL POLICY OF CHINA AND JAPAN AND THEIR INTERACTIONS IS A KEY......Page 73
CONCLUDING REMARKS......Page 75
NOTES......Page 76
Part II. Role of China......Page 80
ABSTRACT......Page 82
INTRODUCTION......Page 83
CHINA’S CURRENT REGIONAL ECONOMIC ROLES......Page 84
FACTOR MARKET DISTORTIONS AND STRONG ECONOMIC GROWTH......Page 89
Factor market distortions......Page 90
Crude estimation of factor cost distortions......Page 94
MACROECONOMIC CONSEQUENCES OF FACTOR MARKET DISTORTIONS......Page 96
CONCLUDING REMARKS......Page 101
REFERENCES......Page 104
NOTES......Page 106
ABSTRACT......Page 108
INTRODUCTION......Page 110
A NEW GLOBAL ECONOMIC SUPERPOWER ON THE BLOCK......Page 111
CHINA’S ATTITUDE TOWARD MULTILATERAL TRADE......Page 114
China’s preference for regionalism......Page 116
Towards the creation of an East Asian free trade area: China’s commitment to good-neighbour diplomacy......Page 117
China’s position at the WTO......Page 119
CONCLUSION......Page 122
NOTES......Page 123
ABSTRACT......Page 136
INTRODUCTION......Page 137
REGIONAL ECONOMIC INTEGRATION......Page 140
APEC AND WHAT HAS IT ACHIEVED SO FAR?......Page 142
GROWING ECONOMIC INTEGRATION AND COOPERATION OF CHINA IN THE ASIAN REGION......Page 148
ROLE OF CHINA IN THE ASIA-PACIFIC REGION......Page 150
SINO-MALAYSIAN EXPERIENCE......Page 153
Investment profile......Page 155
FTA and FDI......Page 158
Trade relations and market access opportunities......Page 161
Reduction in over-dependence on developed countries......Page 167
THE FUTURE: WHAT ROLE CAN CHINA PLAY?......Page 170
REFERENCES......Page 175
NOTES......Page 179
Part III. Monetary Integration and the Reform of the Renminbi......Page 184
ABSTRACT......Page 186
INTRODUCTION......Page 187
A TRUE MONETARY UNION IS DESIRABLE BUT INFEASIBLE......Page 189
A BENCHMARK CURRENCY BASKET AS A COMMON ANCHOR......Page 192
TRANSITION AND PEGGING AT THE RIGHT LEVEL......Page 196
CONCLUSIONS......Page 197
REFERENCES......Page 198
NOTES......Page 199
ABSTRACT......Page 200
INTRODUCTION......Page 201
The evaluation from the macroeconomic stability perspective......Page 202
Evaluation from the perspective of sustainable economic growth......Page 208
Policy option one: A gradual appreciation of RMB within a narrow fluctuation band......Page 211
Policy option two: Pegging to a basket of currencies......Page 212
Policy option three: Substitute factor price reforms and a moderate inflation for exchange rate reform......Page 213
Policy option four: A coordinated basket peg system in East Asia or other regional exchange rate cooperation plans......Page 216
The content of the middle ground solution......Page 217
An evaluation of the middle ground solution to RMB exchange rate reform......Page 220
The timing of the compromise plan......Page 221
SUMMARY AND CONCLUSIONS......Page 222
REFERENCES......Page 223
NOTES......Page 224
Part IV. The Future of APEC......Page 226
ABSTRACT......Page 228
INTRODUCTION......Page 229
Recent global economic recovery, the shift of economic dominance from East to West and developed economies’ rising protectionism......Page 230
Implications of massive fiscal stimulus, mounting sovereign debts and national budget deficits in the West......Page 233
Is the export-oriented external demand-driven East Asian growth model obsolete?......Page 235
Trans-Pacific imbalances and the role of the greenback as a major reserves currency in the wake of weakening euro......Page 236
The symbiotic relationship between environment and globalisation: How Do They Interact?......Page 239
Potential reform measures for a non-welfare base comprehensive social safety net and capacity building in knowledge-based economies for Asia......Page 241
Evolving regional institutional architecture: PECC, APEC, East Asian Community & Asia Pacific Community......Page 243
ASEAN 10+3, ASEAN 10+6, or ASEAN 10+8 or the G-2 process?......Page 244
PECC/APEC, G-20 and G-2 Nexus and the newly proposed 3G Group......Page 245
NOTES......Page 246
Index......Page 248