According to Deming, Yunding & Huasong “Since its inception in 1978, China’s economic reforms have attracted the world-wide attention. Their successful implementation is not only crucial to the development in China’s domestic economy, but also highly significant in promoting china’s economic ties with foreign countries. The ASEANS countries are China’s close neighbors, with whom China sincerely aspires to promote vigorous economy relations on the base of equality and mutual benefits. This relationship hinges upon numerous factors, the most important of which are: firstly, the economic policies, structures and development of China and the ASEANS states; and secondly, the pattern and development trends in the world economy. China’s economic reforms, are most assiduous, complex, and time and time-consuming undertaking, constitutes a long-term factor that will affect the economic relations between China and the ASEANS nations. What is the nature and trend of China’s economic reform? And what impact will it have on prospects for China-ASEANS economic relations? These are matters of general concern to the ASEAN countries.” This paper will cover China’s changing industrial structure its impact on economic relations with ASEAN countries, Policies, mechanism, and institution affecting ASEANS-China economic relations, and Trade in service between ASEAN and China.
The China’s changing industrial structure its impact on economic relations with ASEAN countries. According to Shaohong, Bifan, Tiesen (200..), they explain the policy for industrial structuring that China started showing interest to expand issued related to industrial structure that will benefits their economics and expanding it industrial structure to it neighboring countries such as ASEAN countries. This China’s situation of their expansion was focus on development strategy showcasing a priority on heavy industry, light industry and agricultures. The China relation with ASEAN countries was because they have high-tech industrial sector that can promote the economy of both parties; ASEANS is considered as an economic entity boating of multi-level industrial structure. Furthermore, with the concept of this multi-level industrial structure gave an advantage to development of mutual economic and trade relations. China has become a bigger market for industrial raw material with the help of ASEAN countries. Also, the economic and trade relationship between ASEAN and China are mainly based on a horizontal division of labor. The reason is because, they both exchange from primary to high-tech products that is beneficial to each nation which expand the economy term relationship. The China economic industrial is a long-term economic program policy that will impact on ASEAN. In conclusion, the China reform and readjustment of their economic policy structure has increased the variety of China’s agriculture and ASEAN countries option of diversification of their agriculture too. This has promoted impact on both economic relations.
The policies, mechanisms, and institutions affecting ASEAN-China economic relations started from 1985, there is a new form called Sino-ASEAN brought into the society of economic relations in the era of “normalization” in 1970. In the earlier year, Political leaders from ASEAN countries such as the Singapore Prime Minister along with a trade delegation from the Indonesian Chamber of marketing and Industry (KADIN) and Prime Minister of Malaysia visited to China. The main object of visiting to China is to focus on business and economic matters and to share the common interest. The new develop of Sino-ASEAN relationship introduce new learning curves for both groups of economies. The objection is how both can participate in one another opportunities which emerge from dynamic changes and growth in each other’s economic path. If the relationship between ASEAN and China is going well, it could lead to sustain beneficial relations of Sino-ASEAN to the creation of wealth in the Asia-Pacific area. On the other hand, if the relations are somehow attack by a group of economic competition in their common strategy, and if the issue is bringing them to doubt on each other’s side then the relationship between China and Southeast Asia countries cannot be succeed. ASEAN is basically a group of six equal and individual member states which have evolved in with different approaches in their China policy. The five ASEAN states have different performance rates in their relation with China, but it is also depending on Beijing’s own individualize policy toward ASEAN and individual member states. The happening of different levels, rates and styles of development between ASEAN and China, it gives the conception that this will affect on the approaches in their business and economic relations. Moreover, some of the individual economies within ASEAN are better be ready to accept and be able to catch up economic relations with Beijing. Similarly, the adaption of Beijing’s market towards ASEAN may not be as effective as it should because of its different preference and national modernization. At the same time, they try to find a possible way to separate economics from politics because of different historical background in the ASEAN-China relationship. However, it is possible to have economic exchange between China and ASEAN countries. Anyway, it is clear that each ASEAN countries has developed their own structure of economic with China and all the ASEAN countries joining together to have closer relations with economic Chia policy of instruments and institutional mechanisms develop and growth. Apart from the positive influence of policy changes and basic improvement of establishment, there are also other significant boundary which determine the possible outcome for China and ASEAN economic relations in the future.
The term “Trade in Services” can be applies to international transactions involving such fields as financial services, transport and shipping, communications, construction, and distribution.
When considering barriers to trade in services, domestic regulations governing their supply and consumption are more important than border measures (such as tariffs), unlike trade goods, where border measures play a significant role. These domestic regulations are put in place for a variety of reasons. Sometimes they have been put in place solely to protect domestic industries, but just as often to meet public objectives such as to protect culture and tradition, or to protect consumers’ interests. Thus, the need for multilateral disciplines in the service area was not considered great until recently. However, trade in services has been steadily increasing. According to WTO statistics, services now account for 19.8 percent of world trade (by shipping value), or about $1,312 billion in 1997. This increase in trade in services has led to a greater call for the need for disciplines in this area. The General Agreement on Trade in Services (GATS), requiring most-favored-nation Treatment, market access commitments and national treatment was agreed upon at the end of the Uruguay Round negotiations with the participation of all Member nations including developing countries. The GATS cover a wide range of service industries such as financial services, transport and shipping, communications, construction, and distribution. Further strengthening co-operation and expanding trade relations, ASEAN and China signed at the sidelines of the ASEAN-China Summit the Protocol to Implement the Second Package of Commitments under the Agreement of Trade in Services of the Comprehensive Economic Co-operation between the Governments of ASEAN Member States and the People’s Republic of China also known as the ASEAN-China Trade in Services Agreement (AC-TIS). The Protocol further liberalizes trade in services among the ten ASEAN Member States and China with substantial improvement in their level of commitments on trade in services. The Secretary-General of ASEAN, Dr Surin Pitsuwan said that the signing of the Protocol will further boost trade and investment between ASEAN and China. Under the new Protocol, the eleven Parties expanded the sectoral coverage of their commitments beyond those that they committed under the General Agreement on Trade in Services (GATS) and the first package of AC-TIS as well as further liberalize the level of restrictions or remove discriminatory measures in those commitments. The Agreement on Trade in Services between ASEAN and China signed in 2007 provided for substantial improvement of the commitments on trade in services. The Agreement also provides for progressive liberalization at successive rounds of negotiations to negotiate further packages of commitments. The market access commitments of the Parties to the TIS Agreement are contained in the first package of specific schedule of commitments that are attached to the Agreement. The TIS Agreement provides for liberalization on substantial coverage of sectors/subsectors especially in more than 60 additional subsectors committed by ASEAN Member Countries which are parties to the GATS/WTO.