Saturday, November 14, 2009

Is the rise of China's economic might detrimental to Southeast Asia?

No, China's economic might is surely not detrimental to Southeast Asia. Rather, China's rise as an economic power is expected to bring prosperity in the region. This is best exemplified by the recognition by the ASEAN of China as one of its most important trading and economic partners.





A prosperous China means a bigger consumer market for Southeast Asian countries to sell their products to. With its huge population, imagine how much tourism in the region would rise if the Chinese would travel and visit the ASEAN countries! Tourism translates to more jobs and income for these countries.





While in the short run, China competes with the ASEAN countries in attracting foreign investments thereby decreasing the foreign investments going to its smaller neighbors, China is already fast-becoming a huge foreign investor. With the "spill-over" effect of China's development, its southeast asian partners will definitely get a windfall of economic benefits.

Is the rise of China's economic might detrimental to Southeast Asia?
China's economic growth would not be detrimental to southeast Asia, contrary to this, it will generate healthy competition and trade activities in this part of the world.


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