• For Southeast Asian states, the rise of China is unstoppable. While
they know there are definitely opportunities for them to benefit from
the booming Chinese economy, they are also aware that there are
challenges
• One major challenge is economic : competition in overseas markets,
diversion of FDI from ASEAN to China, etc. • A second challenge could be China’s military modernization and its
expansion into SEA, notably in the South China Sea
• No doubt there are Sino-ASEAN military and defense dialogues and
exchanges