The Rise of China
was tremendously active, producing many proposals to forge economic and political ties.
Since the Cold War-era, Japan-Southeast Asia relations had been centered on enhancing economic development by extending ODA and Foreign direct investment.
Japan had enjoyed a privileged position as the main contributor to the economic development of Southeast Asia. However,China's economic growth since the 1990s has change the positions external power had occupied in Southeast Asia. Also, during this period, the deterioration of Sino-Japanese
bilateral relations might have, at least indirectly, influenced the sharpening competition of the two states' ASWAN policy. Against this backdrop, Sino-Japanese competition over a free trade agreement (FTA) with ASEAN occurred.