New Economic Partner of ASEAN: The Progress of China into the SEA Region

In the past, especially during the 1960s to 1970s, countries in Southeast Asia considered China as a huge hazard for them. At that time, China was a communist hazard for Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, and Burma. These SEA countries started to worry even more when the entire Indo-China (Cambodia, Laos, and Vietnam) became communists in 1975. Later in 1979, China was again treated as a military danger for ASEAN member states because of her invasion into Vietnam since Vietnam had taken over Khmer Rouge regime and controlled over Cambodia.

Nevertheless, things change overtime, the ten countries of ASEAN are less likely considering China as their danger. They also support “One China Policy” in international stage as well. In this context, China is moving silently even closer into SEA region by reason of her successful political, economic, cultural, and foreign policy. By exerting the “Soft-Power” and “Win=Win-Policy”, China has expanded her influence over the region and cleaned up her bad fame in the past time.

In the last two decade, SEA countries feel more relaxed since China leader seem to emphasize more on economic development rather than ideological influencing. In 1997 Asian financial crisis, China had showed her cooperation and facilitation in assisting ASEAN to get out of the crisis by not lowering too low her currency value. Also, China proposed the creation of a “Commercial Bloc” (ASEAN+3) which is ASEAN pluses China, Japan, and South Korea. China signed an agreement of FTA (Free Trade Area) with the six founders of ASEAN from 2010, and with the other four new members, CLMV, in the next coming year 2015. As we know that China has been a big consumer of ASEAN products; with this huge consumption, ASEAN has experienced remarkable economic growth.

In political context, on the other hand, China also gives priority to regional stability. Even though the dispute over Spratly and Parasel islands remains between China and some ASEAN countries such as Vietnam, Philippines, Indonesia, Brunei, and Malaysia remains, but in 2004, China leader stated that China wished and promised to solve this territorial dispute peacefully. Wen Jiabao, China’s prime minister, in 2004 compared China as “a huge but kind elephant who never want to threaten ASEAN member states.”

China has stepped further into the Southeast Asia region as we can see through the over flow of Chinese movies, Chinese cooking styles, Chinese business firms and households, and many others made-in-China products in the Southeast Asia markets.