Economic relations between China and ASEAN: 1970‐2010

Abstract

PurposeThis purpose of this paper is to review the progressive development in bilateral trade and investments between China and the Association of the Southeast Asian Nations (ASEAN) since 1970. China's economic reform has served as a great incentive for ASEAN countries to engage in continuous political and economic dialogue with the economic giant as it is considered as one of the largest, growing markets in the world. The political and economic efforts initiated by ASEAN have sought to affirm an outward‐looking ASEAN in playing a pivotal role in the international community and advancing ASEAN's common interests, which include economic trade with China as regional partner.Design/methodology/approachA review of the literature based on secondary data provides the analysis of the stages of the Chinese political and economic reforms that had brought about improvement in the economic relationship between China and ASEAN.FindingsThe findings comprise reports that highlight the promising trend in investment relations between China and ASEAN.Research limitations/implicationsThe paper highlights the need for further in‐depth analysis of Chinese political and economic reforms that will have a significant impact on regional trade and investment in the Asia‐Pacific region.Practical implicationsThe paper will allow international managers of multinational enterprises to have a better appreciation of the political and economic developments in China and to consider options to enhance greater business partnerships with Chinese corporations.Originality/valueThe literature gap in this particular area of study presents an opportunity to explore new developments in the Chinese Government's economic reforms.