CHINA AND ASIAN REGIONALISM
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1
C H A P T E R O N E
East Asian Cooperation:
Path & Approach1
Introduction
East Asian Cooperation (EAC) has existed for more than
10 years. In 2001, the East Asian Vision Group (EAVG) for
the first time called on “East Asia moving from a region of
nations to a bona fide regional community with shared challenges,
common aspirations, and a parallel destiny.”2 The recommendation
was accepted by leaders of 10+3 countries by confirming
“an East Asian community as a long-term objective that would contribute
to the maintenance of regional and global peace, security,
progress and prosperity.”3 Since then, progress has been made for
East Asian cooperation, but the community-building has still a
long way to go.
Europe has developed a unique model for community-building.
East Asia is different from Europe and has to define its own
model. Current East Asian economic integration has been built up
mostly by market cooperation in following a multi-layered framework.
EAC needs strong political will and a consolidated goal.
1 This paper was written for China–ASEAN Think Tank Dialogue, Nanning,
October 20–21, 2008.
2 East Asian Vision report: Towards East Asian Community — Region of Peace,
Prosperity and Progress, 2001.
3 Chairman’s Statement of the Ninth ASEAN Plus Three Summits, Kuala Lumpur,
12 December 2005.
CHINA AND ASIAN REGIONALISM
© World Scientific Publishing Co. Pte. Ltd.
http://www.worldscibooks.com/eastasianstudies/7417.html
With a multi-layered structure of regional cooperation, it is important
that different efforts converge into an integrated roadmap.
However, with the development of the East Asian Summit (EAS),
the views on EAC seem to be more divided.
I. Emerging Regionalism
The foundation for East Asian regionalism has been built up mainly
by regional economic integration. Currently, economic integration
in East Asia has been deepened by a newly-developed production
network. The network, based on exchange of trade, capital and
technology, has profound impact on East Asian economic development
since it has created a kind of “parallel development” for the
economies in the region.
Economic integration in East Asia has been driven by: (1)
Capital flow from more developed economies to less developed
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
Asia. (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.
Economic integration has created more and more shared
interests, which has helped to develop a regional spirit and
consciousness. The spirit of East Asian regionalism has been nurtured
under an “ASEAN+” framework since the Asian financial
crisis in 1997. The major framework is “ASEAN+3” which is not
2 China and Asian Regionalism
CHINA AND ASIAN REGIONALISM
© World Scientific Publishing Co. Pte. Ltd.
http://www.worldscibooks.com/eastasianstudies/7417.html
just an economic cooperation process. It also has political significance,
i.e. helping to improve relations among the countries in the
region. There are also the other frameworks — “ASEAN+1” and
EAS — that serve as regional platforms for all members to engage
and cooperate through dialogue and joint activities. However,
EAC seems not to have a clear concept and identity yet.
II. East Asian Way
Current East Asian regionalism has shown its new characteristic
feature that is more economic-centered, equally-participated and
consensus-built.4 Different from the EU model, it develops in an
“East Asian way” that has witnessed the following characteristics:
(1) The institution will not develop into a regional organization with
super-regional power. The regional cooperation is characterized
more by a kind of “functional institution-building.”5 Gradualism
and pragmatism are two important principles in the process of
regional cooperation and integration. EAC building is based on
shared interests, rather than a defined goal.6
(2) ASEAN, based on its pioneer experience for regional cooperation,
plays a key role in bringing East Asia together as a region
and shaping its direction. ASEAN provides a unique way
(the ASEAN way) to bring all countries in Southeast Asian
together gradually and to turn the region into a united and integrated
one. The valuable spirit of ASEAN is to realize regional
reconciliation through a gradual process based on functional
cooperation. The ASEAN process is not just economic cooperation
East Asian Cooperation: Path & Approach 3
4 Dr. Prapat Thepchatree called it equality, consensus and comfort level, in Towards
an East Asian Community, a paper presented at NEAT II, Bangkok, 2004, p. 5.
5 Simon Tay suggested that the emerging East Asian sense of community be
founded on a functional interdependence and institutional identity without exceptionalism.
Reader, Singapore Institute of International Affairs, 4(1), p. 32.
6 EAVG report has well identified the aims of peace, prosperity and progress
through a gradual process.
CHINA AND ASIAN REGIONALISM
© World Scientific Publishing Co. Pte. Ltd.
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and integration, but also social and security community-building.
The ASEAN way will be a vital influence on the path and
approach of EAC.
(3) EAC building follows “open regionalism”, i.e. pushing forward
intra-regional cooperation and integration, while encouraging
individual members or the sub-group to develop bilateral or
sub-regional cooperation with outside members. While it
allows the multi-layered frameworks in the region, it also recognizes
the existing bilateral alliance or other agreements.
Thus, the EAC building process is not intended to create an
exclusive or inward-looking regional identity.7
(4) As the political motivation for East Asian cooperation is to
improve regional relations and create peace for the long-term
stability and prosperity of the region, rather than urging for a
super-regional organization, the fundamental role of East
Asian cooperation is to nurture more and more shared principles
and rules for regional relations in a new international and
regional setting.
III. Community Building
East Asian cooperation started from pragmatic need without a
well-designed political goal, and to some extent, even without consensus
building. Economic cooperation and integration provides a
fundamental stake for East Asian regionalism.
Great diversity within the region is a key factor that needs to be
addressed. EAC has to respect the differences while seeking for
harmony, which means that it should not be setting up common
values or principles for adoption by all members.8
4 China and Asian Regionalism
7 Mark Hong argues that East Asian regionalism was driven by market forces and
guided by principles such as open regionalism, flexibility and liberalization.
ASEAN community-building in the context of East Asian regionalism, a paper
presented at NEAT II, p. 11.
8 Some have argued that EAC should be based on common values such as human
rights and representative democracy. See Hitoshi Tanaka, The “10+3” and East
Asian Summit: A two-tiered approach to community-building. East Asia Insights,
JECIE, No. 1, 2006.
CHINA AND ASIAN REGIONALISM
© World Scientific Publishing Co. Pte. Ltd.
http://www.worldscibooks.com/eastasianstudies/7417.html
EAC building is a comprehensive process that includes
institutional-building in the economic, political and social areas.
For the economic area, the most important progress should be
achieved in realizing the East Asian FTA (EAFTA) and a regional
financial architecture (further enhancement of the Chiang Mai
Initiative and towards a regional financial fund). EAFTA should
be rule-based and WTO-consistent, i.e. high level harmonization
of the regional market. But in the political (and also security) area,
the regional institution should be more flexible whose major role
will be to help the members in the region for consolidation, reconciliation
and cooperation, rather than super-intervention. In the
social area, EAC needs to develop mechanisms for people to people
exchanges, which will help to reduce the gaps and grievances
and to develop a shared community spirit and culture. EAC needs
public support.
East Asian institution-building has to overcome the difficulty
of balancing the regional institutions and sub-regional formalities.
For example, ASEAN’s identity and role in East Asian institutionbuilding
must be respected, but ASEAN itself has to adjust to the
new development in East Asia. As for East Asian political cooperation,
it needs collective wisdom on how to define and establish
East Asian political cooperation and security without hurting the
existing relations both within the region and with those outside the
region.9
The political significance of EAC is to realize regional political
reconciliation and peace-making. Considering its great diversity,
East Asia should find its own model for political unity with the
principle of respecting the differences in political systems, social
structures and culture.
The process of East Asian cooperation and integration plays
a dual role in co