Geopolitical Paper Essay Example | Topics and Well Written Essays - 1500 words

Geopolitical Paper - Essay Example China has been the third largest trading partner of ASEAN and it accounted for 11.3% of the total trade of ASEAN in the year 2008 (ASEAN Secretariat, 2010). As observed by Dr. Surin, â€Å"China’s economic growth and strong investment expansion is energizing the region and is providing ASEAN with an expanding diversified market in an environment of slowing growth in its traditional partners† (ASEAN Secretariat, 2010). There were many rationales behind ASEAN - China FTA (Free Trade Area). ASEAN countries wanted free trade with China for many reasons and the motivation involved both political as well as economical factors. The first reason has been that China is huge economy and the increasing demand for goods and services from ASEAN would lead to growth of all the ASEAN countries. Closer integration with China would facilitate ASEAN to reduce the reliance on other countries like United States, Japan and European Union. Moreover it was found that China has been quite supple with the new ASEAN countries and has been providing developmental assistance. By extending WTO nations’ benefit to the non WTO member would make it viable for the new ASEAN countries to gain from trade liberalization with China. Besides this, the other reason for choosing China was the temperate agriculture of China and tropical agriculture of ASEAN which was complementary and thus they could have liberalized the agricult ural trade. Again according to ASEAN, the ASEAN-China FTA (ACFTA) is the way through which the post crisis can be recovered. China’s enthusiasm for forming the ASEAN-China FTA was also politico-economic. When viewed politically China wanted to maintain friendly relations with its neighboring countries in the south. It has also been noted that ASEAN-China FTA was a confidence building process in order to put to rest the ASEAN distress over China’s economic condition that was a threat. Therefore close