Capital flow from more developed economies to less developed
l economies — firstly from Japan, then from the "four dragon"
| economies. Now, capital flows are more intersected among
the economies, including those from developing economies to developed
economies, which have facilitated^ capital and technology
transfer and developed a vertical economic growth chain in East
Asiay'(2) Trade and FDI-friendly policy and open market strategy,
i.e. liberalization of the markets by East Asian economies that have
reduced transaction costs significantly and made the market-based
economic integration easier (3) China's economic rise, due to its
great size and huge market potential, has become a new factor for
regional economic growth and restructured the pattern of regional
economic integration. China has become an important hub, both as
a market for capital inflow, and a market for imports of goods and
services Based on the restructuring, a new regional production
and service network has gradually been established