International Business Case Study China 2022

Economics 1
International Business
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Course
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Economics 2
First Claim: Opportunities are illusion, China dominates the Asian Region
According to the National Bureau of Statistics of China (2017), China had a population
of approximating to 1.386 billion people by the year end 2017which is twice that of the ASEAN
economies. It therefore shows that the human resource and opportunities enlisted in Chinese
economy is larger than that of the ASEAN economies. The GDP for the whole China is
approximated at $12.24 trillion which is excess in comparison to the ASEAN economy. It
therefore shows that ASEAN economy is just but 20 percent equivalent to the Chinese GDP
which therefore makes China a dominant economy in the Asian region (Wenlong and Xinyi,
2018). China still dominates the Asian market where it is able to buy and monopolize the free
trade market in order to access the rival economies. In addition, according to (Grimsditch, 2017),
the Cambodia-China trade relationship has increased in terms of volume of imports from the
Cambodian economy which grew from $6 billion in 2017 to $7.5billion in 2018 with a forecast
of growth by more than $10 billion in 2022.
The depreciation of the Malaysian durian, Cambodian rice prices and Philippine fruits
with the help of Chinese subsidies and open market are just but a glimpse of the opportunities
that the robust Chinese market has provided to the ASEAN member countries when the world
trade is predicted to weaken further (Hashmi, 2019). According to Porter’s international trade
theory, countries competitiveness in an industrial growth depends on their abilities and
capabilities to industrialize, innovate, and upgrade with a minimal dependency on other nations
(Alexandros and Metaxas, 2016). This is true to what the Chinese economy has incorporated in
its economy compared to ASEAN economy which depends on its member states to remain
relevant to the global economy.