As the United States and Europe struggle with heavy debts and weak growth, China increasingly powers the expansion of nearly every economy in the Asia Pacific region. It raises a critical question, particularly for Southeast Asia and Australia: Which are the ties that bind — those of commerce and rising prosperity, or those of national security?
The U.S., in its current straitened circumstances, with one in nine of its workforce unemployed, finds it difficult to compete with China in negotiating attractive trade and investment deals with Asia Pacific nations, even though it remains the world's biggest economy. Instead, U.S. diplomacy and the presence of its armed forces in the region help provide a counter-balance to China's growing military power, a trend underscored on Aug. 10 when China sent its first aircraft carrier for a sea trial.
In the midst of debate last month over freedom of navigation and other maritime issues in the South China Sea during the ASEAN Regional Forum meeting, China's Foreign Minister Yang Jiechi noted that Asia contributes 50 percent of current global economic growth, and China 26 percent. He added that in the next five years, China's imports are expected to reach around $10 trillion and that most "will be from the countries represented here."