Summary:
Experts want Southeast Asian countries to consider the benefits that peaceful Chinese development brings to the region. Concerns exist from ASEAN countries (Association of Southeast Asian Nations) that China can put many local businesses at a disadvantage. But experts argue that competition will do more to complement the existing business as opposed to putting them out of business. The China-ASEAN Free Trade Area Investment Agreement came into effect on Jan 1, 2010 and as a result many Chinese businesses have built plants in ASEAN countries. That's right, China is outsourcing! But that will create many jobs and in turn more tax revenue for the governments, with which they can use to improve infrastructure. The real concern comes from the fear that "a stronger China could push the United States out of regional affairs." As a sign of good faith, and to quell fears, experts suggest that China could help with things like disaster relief and epidemics that occur in Southeast Asia. A more unlikely suggestion is that China also increases military exchanges with Southeast Asian countries.
Significance:
This new development is a great step in opening up all of East Asia, not just China, with the rest of the world. If all goes according to plan, China and the ASEAN countries will see a new trend of globalization that will make them a lot more powerful economically on the global scale, not to mention the local level. But this will also mean that international factors will have more influence in the region which has equal potential for harm as it does good. In its current state though, China only stands to gain from this free trade agreement and the only way that it could be hurt by it is if the countries China invests in collapse due to China investing in them. The potential for irony is killing me. But again, the intended purpose of the free trade agreement has the ability to decrease regionalism in Southeast Asia, or maybe do away with it altogether in the more distant future.
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