The Economic Rise of China: Its Threats and Opportunities from the Perspective of Southeast Asia

Beoy Kui Ng

Research output: Working paperResearch

4 Downloads (Pure)


The purpose of the paper is to examine the economic impact of China on the Southeast Asian countries, mainly in terms of trade and investment. The paper attempts to examine whether the rise of China poses a threat to Southeast Asia as a region in the area of international trade, especially competition in the third markets. Can they be comrades rather than competitors in international market? Secondly, the paper also questions the concentration of foreign direct investment (FDI) in China implies a diversion of FDI away from the region. Are the FDI in China and Southeast Asian region complement each other in the international division of labour? On the other hand, the increasing role of China as an international trader and global investor provides an opportunity for Southeast Asia countries to integrate with the Chinese economy. The huge domestic market of China also provides vast opportunities for investment, especially through connections of their respective ethnic Chinese businesses in the region. In return, Southeast Asian countries, through their respective ethnic groups can also play a middleman role between China and the West, as well as between China and India together with the Middle East.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherAsia Research Centre. Copenhagen Business School
Number of pages25
Publication statusPublished - Oct 2006
Externally publishedYes
SeriesCopenhagen Discussion Papers

Bibliographical note

Paper presented at the inaugural international workshop ‘ChinaWorld’ on 10-11 March 2006 at Asia Research Centre, Copenhagen Business School


  • International Trade
  • Direct foreign investment
  • Outward investment
  • China
  • Economic integration
  • Regional economic co-operation
  • WTO
  • World Trade Organization

Cite this