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China's Changing Economic Structure and Implications for Regional Patterns of Trade, Production and Integration

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  • Kim Song Tan
  • Hoe Ee Khor

Abstract

Without intending to do so, China has in recent years played a major role in East Asia's economic integration. It has done so mainly through the production and supply chain networks it has spun across the region. This paper argues that given the developmental trends in the Chinese economy, the Chinese government should pursue a more active strategy towards a broader and more balanced economic integration with the region. The emergence of a multi‐track production structure, increased importance of domestic consumption and the services sector, together with faster integration of the domestic economy, will fundamentally change China's trade and investment relationships with the rest of East Asia and necessitate a review of China's economic integration strategy. The paper also argues that ASEAN can play a useful role in facilitating the region‐wide integration process. (Edited by Xiaoming Feng)

Suggested Citation

  • Kim Song Tan & Hoe Ee Khor, 2006. "China's Changing Economic Structure and Implications for Regional Patterns of Trade, Production and Integration," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(6), pages 1-19, November.
    • Handle: RePEc:bla:chinae:v:14:y:2006:i:6:p:1-19
    DOI: 10.1111/j.1749-124X.2006.00042.x
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    References listed on IDEAS

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    1. Kojima, Kiyoshi, 2000. "The "flying geese" model of Asian economic development: origin, theoretical extensions, and regional policy implications," Journal of Asian Economics, Elsevier, vol. 11(4), pages 375-401.
    2. Barry Eichengreen, 2006. "China, Asia, and the World Economy: The Implications of an Emerging Asian Core and Periphery," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(3), pages 1-18, May.
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    Cited by:

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    2. Yan Liang, 2008. "Why Are China's Exports Special?: The Role of FDI, Regional Trade, and Government Policies," Chinese Economy, Taylor & Francis Journals, vol. 41(6), pages 99-118, November.
    3. Rupa Chanda & Sasidaran Gopalan, 2009. "Understanding India's Regional Initiatives with East and Southeast Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 66-78, May.
    4. Straub, Roland & Thimann, Christian, 2010. "The external and domestic side of macroeconomic adjustment in China," Journal of Asian Economics, Elsevier, vol. 21(5), pages 425-444, October.
    5. Sarah Y. Tong & Yi Zheng, 2008. "China's Trade Acceleration and the Deepening of an East Asian Regional Production Network," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(1), pages 66-81, January.
    6. Francis Tuan & Agapi Somwaru & Sun Ling Wang & Efthimia Tsakiridou, 2016. "The Dynamics of China's Export Growth: An Intertemporal Analysis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 37-57.
    7. Urraca-Ruiz, Ana, 2013. "The ‘technological’ dimension of structural change under market integration," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 1-18.
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