China's Rise in Southeast Asia: Implications for Japan and the United States

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[This is a comprehensive contribution to an ongoing discussion of East Asia and the Pacific in an era of transformation. Earlier contributions by Gavan McCormack and Wada Haruki (on Northeast Asia), by David Rosenberg (on China and Southeast Asia), and by Lora Saalman (on the changing Chinese- Indian-U.S. strategic relationship) all raise issues posed by the rise of China as a major economic power in Asia and globally, and the repercussions of changing power relations reverberating throughout Asia. Noting that China remains a distant third to the U.S. and Japan in trade and investment in East and Southeast Asia, Economy highlights China's rapid advance, above all in the realms of economics and finance, but also extending to a broad realms including governance, the resolution of territorial conflicts, the environment and others, with particular reference to Southeast Asia. At a time of rising China-Japan tensions, China appears to be making major multifaceted gains throughout Southeast Asia. This article also examines the possibilities of regional trajectories in which the U.S. role is sharply reduced. Japan Focus]

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Heavy metal contamination in Asian drinking water: a regional assessment of health risks and disability-adjusted life years (DALYs)
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  • 10.1355/cs35-3d
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  • Contemporary Southeast Asia
  • John Lee

The victory of the conservative Liberal Party led by Tony Abbott in the September 2013 general elections means that is now committed to the preparation of a new white paper --the country's third in six years--to be released in early 2015. The timing was pre-determined on the back of public promises by Abbott and then shadow minister David Johnston during the campaign to deliver the new white paper within eighteen months of entering government. Plans are already underway to ensure that the document will be delivered on time. (1) While the top priority for planners over several decades has been to ensure the defence of Australia by acquiring military capabilities to repel any direct enemy advances against the mainland, the 2000, (2) 2009 (3) and 2013 (4) white papers delivered by the John Howard, Kevin Rudd and Julia Gillard governments, respectively, have all upheld the importance of strategic stability in the Asia-Pacific as a critical national security interest. This was reaffirmed in the pre-election policy document released by Senator Johnston who has now been sworn in as Australia's Defence Minister. (5) Although the somewhat meaningless phrase Century (6) is now widely used in Australian strategic, and economic discourse, some of Australia's neighbours suspect that Canberra focuses too heavily on large Northeast Asian powers such as China and Japan, and not enough on major Southeast Asian players, the latter region defined in this article as the subregion of Asia consisting of countries that are geographically south of China, east of India, west of Papua New Guinea and north of Australia. To be fair, Canberra's attention is appropriately directed towards its three largest trading partners in Asia--China, Japan and South Korea --which are all in Northeast Asia, while the structural causes of potential region-wide instability is primarily a Northeast Asian phenomenon as possible instability is primarily driven by China's re-emergence as a Great Power. Even so, previous Australian white papers have tended to take a predominantly approach to Southeast Asia in that they posit that Canberra should ensure that it has adequate military capabilities to manage and contain risks to its national interests should adverse developments occur in that region. While this is a sensible and prudent position to take, little ground has been made in terms of exploring the strategic possibilities of Southeast Asia, and in particular how Australian relationships in Southeast Asia and the capabilities that it brings to the table can contribute to the broader objective of ensuring strategic stability in Asia. In other words, the strategic analysis underpinning the next white paper ought to do several things. Rather than treating Southeast Asia as a standalone strategic region, it needs to link bilateral and multilateral opportunities in Southeast Asia with the future shape of strategic decisions made by powerful players in East Asia, and China in particular. In addition, in conceiving of Australia's future place and role in Southeast Asia, Canberra needs to go beyond its risk management approach. Instead, Canberra should view Southeast Asia as a region filled with strategic opportunity, which directly feeds into the goal of ensuring greater stability throughout Asia. In making this argument, the paper comprises three parts. First, it offers a brief summary of recent Australian strategic and thinking on Southeast Asia. Second, it outlines why China is the key variable when it comes to strategic stability or instability in the region, and how China's strategy in achieving its objectives can be shaped and influenced by events and relationships in Southeast Asia. Finally, the paper offers some suggestions as to the role can seek to play in Southeast Asia that will contribute to strategic stability in Asia more generally. …

  • Research Article
  • Cite Count Icon 10
  • 10.1355/ae19-1a
Introductory Overview: Rethinking the East Asian Development Model
  • Apr 1, 2002
  • Asean Economic Bulletin
  • Nick J Freeman + 1 more

Introductory Overview Most of the economies in East and Southeast Asia have witnessed rapid economic growth over the last three decades. The economic progress witnessed in these economies, and their steep industrial development trajectories, have been both impressive and unparalleled. Indeed, the region has been at the forefront of the transformation of the so-called Third World countries to emerging markets, as evidenced by fairly avid investor appetite for exposure to East Asian business assets. At least, that was the case until the mid-1990s, the Asian financial crisis of 1997, and the regional economic downturn that immediately followed. It is said that pride comes before a fall, and perhaps East Asia had become a little too blase about its seemingly effortless ability to consistently register impressive gross domestic product (GDP) growth rates, almost year after year. In this regard, the Asian financial crisis was a wake-up call for the region. Some of the policy assumptions that the East Asian economies had started to take for granted are now being reevaluated, including the sorts of economic policies and implementation strategies that had apparently served so well in recent decades. Quite understandably, in the years immediately after the regional financial crisis of 1997-98, attention was primarily focused on getting East Asia's economies back on their feet. But as time has passed, and the recovery process shows (mixed) signs of nearing completion, there is an increasing awareness that the region's economies must now see how they can advance. The fallout from the Asian financial crisis has not been the only trigger for such an economic reevaluation process in East Asia. Other related changes in the external environment have also prompted policy-makers, academics, and business people to reconsider some past assumptions. The ongoing rise of China as an economic and industrial behemoth has caused some East Asian countries to reconsider their industrial development policies, as China begins to absorb an increasingly large proportion of East Asia's aggregate foreign direct investment (FDI) inflows. Should China's economic growth continue, the vast scale and broad diversity of China's continental-sized economy will oblige other East Asian countries to wholly rethink their relative positions in the food chain. Or, as one commentator cogently put it: what will the rest of East Asia do for a living now that virtually everything can be made more cheaply in China ?1 Able to competitively produce a range of goods that span the entire value chain, China poses an immense competitive challenge for many East Asian countries, at least in the short to medium term. Morgan Stanley recently posited that: China's rise as the world's factory ... fundamentally threatens Southeast Asia's ability to sustain foreign direct investment and manufacturing activity. In our view, [the Malaysian, Thai, Indonesian and Philippine] economies must either dismantle or reinvent their pro-investment, export, mass manufacturing model, as the East Asian Economic Model (EAEM) platform will no longer be viable for Southeast Asia.2 In another commentary the same author went on to assert that unless a different development strategy to the East Asian Development Model (EADM) is found and executed ... Southeast Asia is destined to face a dramatic economic decline over the next ten years.3 International business activities are also mutating, with the adoption of increasingly more complex and varied international production networks becoming common practice for multinational enterprises. A large proportion of global trade is now conducted between enterprises operating within the same transnational company. Foreign investment patterns are also changing, with merger and acquisition (M&A) activity now the principal driver of global FDI flows. The pace of plain vanilla greenfield foreign investment activity - which Southeast Asia is most familiar with - has become much less vigorous, as global overcapacity in a range of products has meant that companies are extremely reluctant to bring new capacity on-stream in the current economic environment. …

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