The Political Economy of China’s Changing Relations with by John Wong

The Political Economy of China’s Changing Relations with by John Wong

By John Wong

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Extra info for The Political Economy of China’s Changing Relations with Southeast Asia

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E. Asia 27 At present, the markets in advanced countries for manufactured products from the developing world are mainly captured by a few dynamic NICs, which in Asia include South Korea, Taiwan, Hong Kong and Singapore. , 46 per cent for Hong Kong and 32 per cent for South Korea in 1979; and the bulk of the textiles and clothing exports are for the industrial countries. 32 In 1979, textiles and clothing constituted 24 per cent of China's total exports, and 27 per cent of China's manufactured exports went to the industrial countries.

Of course, this is not positive diplomacy, and could well be a shortsighted approach. By normalising relations Indonesia could actually work together with China to harmonise their conflicting interests. This could in turn lead to an overall enhancement of regional peace and stability. Continuing Sino-Indonesian diplomatic impasse has equally serious consequences for China. In fact, China's diplomatic failure in Indonesia has continued to hurt Beijing, and the loss cannot be offset by diplomatic gains resulting from opening up new relations with the other ASEAN states.

The noted Chinese economist Mr Xue Muqiao took the optimistic view that Hu's targets could be achieved. 2 per cent for the two decades. 22 This projected high economic growth, impressive as it might seem for China, is not all that an impressive feat in the context of ASEAN's past growth records. Furthermore, as China fulfils the targets by producing its material GNP to 2800 billion yuan by the end of the century, the amount will work out to around only USS 1200 on a per capita basis, which will still not be sufficient for China to close its expected average income gaps with ASEAN.

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