The Rise Of China: Its Effect On East Asia

Author: Yoshikara Kunio
Publisher: UKM Press
ISBN: 9789679425956
Weight:
Pages: 49
Year: 2002
Price: RM20

In the long run, globalization may be beneficial to the countries involved, but for this to be realized, the problems it creates have to be overcome. To do so is, however, difficult when a large but poor country like China is integrated into the global economy. In the first 15 years, it is East Asian neighbors were able to manage the problems, but in the past several years, because Chinese exports diversified into more sophisticated products and because they have not been doing as well as before the economic crisis, Chinese competition has become a serious problem. In Southeast Asia, it is threatening the leading industrial sectors such as household appliances and electronic products, whereas in Northeast Asia it is increasing the rate of unemployment by wiping out mature industries and mature processes. Chinese competition will certainly make it more difficult for Southeast Asian countries such as Malaysia to rely on industrialization for economic growth and cause serious problems to the localities that have relied for their development on the industries that are now in trouble. But the region is in a better position than Northeast Asian countries in adjusting to Chinese competition because it can develop resource-based industries.