The Rise of China and its Impact on ASEAN Economies: Challenges and Opportunities

Abstract

The ASEAN-5 economies experienced rapid growth in the decade before the emergence of the Asian financial crisis in 1997. Correspondingly merchandise exports from these economies also increased significantly during the same period. With economic recovery post-crisis, Singapore, Malaysia, Thailand and Indonesia were ranked, respectively, 15th, 18th, 23rd and 26th in terms of world exports in 2000. Concurrently, imports from Singapore, Malaysia and Thailand were ranked, respectively as 16th, 18th and 22nd in the world for the same year. Exports of the ASEAN-5, including Brunei, to the United States of America (USA), European Union(EU) and Japan, respectively, were US$70 billion, US$55.7 billion and US$ 37.6 billion in 1999. A surplus was attained for the same year in the merchandise account of these economies with USA and EU as the ASEAN-5 together with Brunei imported respectively, US$45.9 billion and US$34.5 billion from USA and EU. However, with Japan, a deficit was obtained, as imports from Japan were US$51.2 billion.