Economies of East Asia China called as “China Rules”

This study provides an overview of the economies of East Asia, focusing on China's development, Asean's challenges and Japan's ageing population. The first part highlights China's success in making its own framework and freeing its people for spending money. The second part discusses Asean's need for higher economic integration and increased unity to navigate the perilous times. The third part explains Japan's economic slowdown due to its ageing population.

Running head: ECONOMIES OF EAST ASIA
Economies of East Asia
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................2
Part 1................................................................................................................................................2
Part 2................................................................................................................................................5
Part 3................................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

2ECONOMIES OF EAST ASIA
Introduction
The present study provides an overview on the economies of East Asia. The first part of
this paper focuses on the important factors that contribute to development of China. This section
highlights on the recent series on China called as “China Rules”. The second part of this paper
discusses about the things that Asean must do for navigating the perilous times. This segment
reflects on how deeper economic integration and greater unity can aid to overcome challenges.
The third part of this study explains about the image that focuses on slowdown of Japan
economy and it’s drastically ageing population. This section also explains about the impact of a
policy based on the assumption that China is highly aggressive in asserting it claims to the island
in the South China Sea.
Part 1
At present, China is the second- biggest economy across the globe. The poverty rate of
this country declined over the last few years. This country succeeded by making its own
framework and freed their people for spending money. Over the years, the leaders have led
China out of chaos of Cultural revolution under the idea that people might make more money
(nytimes). The entrepreneurs of China flocked to SEZ (Special Economic Zones) especially
where they paid less taxes and create their own decisions. Even Beijing pushed the state- owned
enterprises to become leaner and smarter, which in turn led to layoffs of several workers. Since
China needed huge growth, it joined WTO (World Trade Organization). However, it boosted the
foreign enterprises to invest huge amount in the nation. After this nation’s entry in WTO, the
total exports have doubled in last three years. The foreign direct investment increased at high rate
and global manufacturers moved their whole operations to this country. Cheap products of this
country ushered in lower prices, which in turn increased the total number of industries. It led to

3ECONOMIES OF EAST ASIA
liberation of Chinese and motivates the desire of people and stimulates strength masses as well
as provides opportunities for common people to enhance their standard of living.
After US opened its door to China’s entry in WTO, economic integration has brought
about freedom in the nation. Liberalization of China economy has led to liberate the people’s
potential. Chain also began exporting the products to other countries, which in turn lowered the
cost of products in other countries (nytimes). As China opened its markets, it created several
barriers which hobbled international competitors as well as favored its companies. On the
contrary, China’s economic aggression has threatened technologies as well as intellectual
property of the companies across the globe. However, doing business in this nation has become
harder after this economic aggression. Overall, the competition between China and other
countries increased over the years.
China’s reach for its commercial expansion guides array of the Chinese undertakings
from the rail networks to the power stations in Eastern Europe. China has invested huge amount
of money in the infrastructure projects in several other countries. In offering huge financing for
the infrastructure projects, this country has positioned itself as alternative to development funds
of European Union. At present, China has also made investment for future that led the innovative
sectors with brainpower as well as money. Beyond money, China also projects its power through
military build up. The maritime build up in China have provided Beijing effectual control over
heavily trafficked waterways. This in turn led to increase in opportunities and employment rate
of China. The rulers of China have controlled the society through nationalism, fear and
opportunity. The Chinese government has provided education as the way to social mobility and
thus unleashed private enterprises by reducing Confucian against merchant class. The China

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government has also hanged the rules of education system which in turn provided more
employment to the Chinese.
Over the past few years, China has realized huge economic development within short
period of time through enhanced access to its growth policies. This country has become one of
the highest performing economies where different factors of development are given more
significance in its domestic policies. The transformation of Chinese economy from planned
economy to the market has led to structural shifts as well as changes in this nation. China
basically focused on economic forces that have become the tools of this nation’s economic
development. Some of the vital forces include- technology, special economic zones,
infrastructure and generation of other economies (Pan and Denton). This nation has initially
pursued export- oriented path to its industrialization. All the sectors of this economy have begun
to diversify in the past ten years. The private industry now manufactures more than 60% of the
China’s economic output. This sector employs near around 80% of the workers in urban and
rural areas and also generates around 90% of new jobs. This nation’s embracing of internet
within limits has facilitated to make it a leader in technology. Moreover, foreign advice has also
helped this nation to restructure its banks, build legal system and also create modernized
corporations. This country has also benefitted from the Taiwan’s money, its technologies,
managerial experience and relationship with the customers across the globe. In effect, Taiwan
has also introduced capitalism in China and thus plugged into the world economy (Chow).
Furthermore, China is one of the nations that has squared several demands of the authoritarian
rule along with the requirements of free markets. Over the last few years, economic growth in
this country has become10 times faster as compared to that of US.

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Part 2
Ji et al. opines that backdrop of repercussion globally against multinational institutions
and free trade, Asean has been a proponent of endangered ideals. The open and free based
multilateral order has underpinned the growth of Asean while huge power competition has been
pulling the Asean member states in varied directions. At this time, Asean has also been facing
transnational problems including climate change and digital technologies. In face of these
challenges, Asean must achieve higher economic integration, increased unity in the next few
years so as to effectively engage its main partners as well as populations with proper skills that
are required for new jobs in digital economy. For achieving these targets, Asean must require to
reduce trade barriers and considerably enhance trade with other nations. Furthermore, huge
infrastructure investments as well as productive capacity in the next few years within several
Asean nations will help to navigate such perilous times. Asean must make progress on
integrating technology for retaining competitiveness within globalized economies and attain
regional security (straitstimes). The member nations of Asean must capitalize on the
participation in Regional Economic Partnership free trade pact. Doing this, Asean should remind
US that pact had been never the Chinese led initiative. However, Asean should engage with
China as that of US. For being able to play assertive role in the regional matters and to aid foster
cooperation between China and US, Asean must require more centralized leadership as well as
institutional theft. Asean must also take advantage of digital revolution for assuring
interoperability of the digital systems in the regions. If Asean member states hope in managing
its engagement with the world powers effectively, then only the group can achieve its target to
strengthen as economic community as well as political- security society. Centralized political
union should underpin Asean’s step towards the single market. The understaffed secretariat

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should be granted larger power (YAHYA). The member states of Asean should integrate more
sovereignty as well as commit themselves for stronger bureaucracy to enforce certain policies
and solving problems. At this time, the member states of Asean must also require to address
festering and vulnerabilities. Therefore, making investment in labor force skills and human
capital of Asean would facilitate to assure that the outcome of developing nations are usually
shared by low skilled laborers (Ji et al.). For coping out in uncertain times, Asean might operate
as coherent regional actor. However, this will aid the member states to enhance their capability
in managing relationship among them and increase engagement with other regional powers that
include- Australia, Japan, Russia and India. This in turn can dissuade the Asean member states
off its dependence on support of two large powers and can afford them higher strategic freedom
in political as well as economic matters. Besides this, if Asean negotiate complicated path, it
might boost chances of regional growth as well as security.
Part 3
1. The cartoon reflects on the Japanese flag that is bleeding out to the struggles that Japan is
going through over the last few years. This image mainly highlights on the ageing population of
Japan and how it is slowing down its economy. According to the latest data published, the Japan
economy has contracted at annualized rate of around 0.6%. The capital spending and private
consumption slowed down during the last few years. Few economists have found out that
ongoing trade war between China and US has also affected the businesses in Japan, thereby
leading the Japanese enterprises to pare back its capital spending. Annear has found out that
ageing population is one of the acute problems in Japan. The reasons for Japan’s ageing
population include- Japanese have longest life expectancy rate and lowest fertility rates, highest
suicide rates especially among men causing death for people aged between 15-39. Two common

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problems that comes along with ageing population are- reduced laborforce in the industries and
barriers to enhanced immigration. The economists are of the view that ageing population of
Japan is shrinking this nation’s GDP. Reduction in laborforce and rapidly ageing population are
hampering economic growth of Japan (Izuhara). It has been predicted by few economists that
financial wealth of the Japanese households might stop growing as well as start to decline over
the next few years. Moreover, liabilities of the Japanese households would also enhance over the
next few years, thereby putting damper on wealth accumulation (ft). This trend erodes living
standards of Japanese owing to their low income earnings. Overall, the national income of this
country declines and thus slowing down its economy.
2. China efforts in controlling South China Sea as threat, freedom of navigation and endangering
security and liberal global order. China has huge interest in assuring that trade routes in South
China Sea remain open and Beijing has less interest in regional power and military conflict
(Dolven et al.). Even though South China Sea policy has been inconsistent with few norms as
well as institutions of rule based liberal order, Beijing does not attempt to weaken this order and
stays supportive of vital elements of international system. The tightening control of China over
South China Sea policy can led to adverse impact on few regional nations (Ji et al. ). For most of
the nations, shipping routes which run through South China Sea are main line of their economies.
This shifting balance might enable this nation to settle disputes within the regions. South China
policy might permit Beijing for better project the military power across the South- East Asia.
This in turn might increase cost for US or other nations. In addition, this policy might lead to
long- term consequences for nations involving China when they flaunt foreign norms and seek in
settling disagreements with force.

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Conclusion
From the above discussion, it can be seen that Chinese government has adopted several
measures and policies for enhancing its economic growth. The policymakers of China has also
made huge investment in different sectors, which in turn also contributed to rapid economic
development of China. Additionally, China’s efforts in making South China Sea policy also
helped to mitigate regional disputes. This paper also reflects that Asean member states must
integrate several policies for navigating these perilous times. This paper also highlights that
Japan economy has been slowing down due to ageing population and decline in national income.

9ECONOMIES OF EAST ASIA
References
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14 Dec. 2018.

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