Category: Asia Pacific

The AEC’s December 2015 Deadline – Too Soon?

In 2007, the 10-member Association of Southeast Asian Nations (ASEAN) bloc adopted the goal of creating an integrated economic region—termed the ASEAN Economic Community (AEC)—by December 2015. However, concerns have been expressed that the regional integration project’s 2015 deadline will be missed due to an overly ambitious timeline and too many ill-thought-out initiatives. With the AEC deadline looming, this article critically assesses the progress that has been made, charts some of the main challenges, and suggests the next steps for the AEC.

China-Philippine South China Sea Dispute Approaches a Critical Point

The ongoing disputes between the Philippines and China in the South China Sea are about to reach a critical point. In January 2013 the Philippines activated procedures under Article 287 and Annex VII of the 1982 UN Convention on the Law of the Sea (UNCLOS) over a dispute about the validity of China’s ‘nine-dash line’ in the South China Sea. The Philippines contests the validity of this line and any attempts by China to assert sovereignty or sovereign rights over islands and other maritime features found within this area.

Hong Kong, Macao, and Taiwan Should Address Structural Reforms

The old growth engines of Hong Kong, Macao and Taiwan are decelerating. The new ones are predicated on deeper economic ties with China.

Recently, the governing Kuomintang suffered a landslide defeat in local elections in Taiwan, China; the worst electoral setback since KMT’s coming to power in 1949. As a result, President Ma Ying-jeou named a new cabinet head, even as he resigned as KMT chairman.

U.S. Policy Supports Freedom of Navigation in the South China Sea

The South China Sea is not the central strategic element in the overall US–China relationship. It was clearly not a centrepiece of the November 2014 Obama–Xi summit in Beijing. Climate change, North Korea, Iran, Taiwan, trade, intellectual property theft and cyber security are more important bilateral issues. But, since 2012, China has been taking a more assertive stance towards territorial disputes in the South China Sea — raising significant policy questions for the United States.

Strengthening China and Japan’s Relationship

The meeting between Prime Minister Shinzo Abe and President Xi Jinping at the 2014 APEC summit was a temporary relief for both amid rising bilateral tensions over the last two years. This talk was the result of both governments’ efforts to repair the bilateral relationship, temporarily parking both the Senkaku/Diaoyu dispute and the history issue. Both leaders agreed to resume their strategic relationship, starting talks over the creation of a maritime crisis management mechanism and the expansion of economic cooperation.

Modi Breaks a Trend and Visits Australia After the G20 Summit

Australia and India have not always been the best of friends.

FTAAP Revival is China’s Signature Trade Initiative

The 2014 APEC leaders’ summit witnessed a string of successes in Chinese trade diplomacy. Key among these successes was the endorsement of China’s signature trade initiative as APEC host: the realisation sooner rather than later of a Free Trade Area of the Asia Pacific (FTAAP).

China also reached a substantive agreement with South Korea on their bilateral FTA and a breakthrough on negotiations with the Americans to expand the coverage of the Information Technology Agreement that promises to re-energise a US$1 trillion market in technology goods trade.

Thai-Cambodia Relations Holding Back Economic Development for Both

Domestic uncertainties in Thailand and Cambodia have hindered progress along the heavily militarised border and the Preah Vihear temple dispute.

Australia’s Abbott Reaches out to Jinping – Twice

Forget shirt-fronting Russian President Vladimir Putin. Australian Prime Minister Tony Abbott’s most challenging task in the summit season was breaking an uncomfortable silence with Chinese president Xi Jinping. And he had to do it twice: first at the APEC meeting in Beijing and again at the G20 in Brisbane.

After vigorous lobbying by the US and Japan, Australia’s involvement in the China-led Asia Infrastructure Investment Bank was scuttled by the National Security Committee of federal cabinet on strategic grounds.

The Potential for Australia and China’s Free Trade Agreement

The past week has seen big breakthroughs in Asia Pacific economic diplomacy. At the APEC summit, Xi Jinping and Shinzo Abe broke the diplomatic ice in the China–Japan relationship. The United States and China paved the way towards extending the successful International Technology Agreement through the WTO. They also did a game-changing deal that will entrench deep cuts to carbon emissions through to 2025–30. China brought trans-regional (as opposed to Eastern and Western Pacific) integration back to centre stage in APEC’s quest for open regionalism.