Economic integration in the Pan-PRD region and ASEAN - role of Yunnan

Abstract

In view of their potential in long-term economic development, Southeast Asian countries will become the area with the most dynamic and attractive economic development in the world. Yunnan, as China's province that directly participates in the economic cooperation of Lancang River-Mekong River Subregion, has obtained remarkable success through the cooperation. ASEAN has become Yunnan's largest partner in economic and trade cooperation. However, the process of economic and trade cooperation between Yunnan and Southeast Asian countries has been impeded, to a large extent, by such matters as the weak base of land routes and transport, inefficient exchange of information, inadequate extroversion and openness of Yunnan's economy, and unsatisfactory comprehensive economic power. Yunnan's participation in the cooperation in the Pan-Pearl River Delta Region has provided favourable conditions for strengthening Yunnan's competitiveness and its cooperation with Southeast Asia. With its unique political, economic and cultural attributes, Hong Kong has become a strategic foothold for ASEAN countries to develop economic and trade or other types of relations with the Mainland. In the cooperation between Yunnan and Southeast Asia, Hong Kong can exert its distinct advantages to function as a crucial medium and partner in the process of Yunnan's "going abroad" and upgrading its international competitiveness. At the same time, Hong Kong's role as China's most important entrepot, medium for bi-lateral economic and trade services, and its share in the Mainland market will encounter challenges.