On Legal Mechanisms Of Financial Cooperation In East Asia

The 1997 Asian financial crisis exposed the drawback of lacking cooperation in financial field of East Asian economies, and at the end of 2007 the outbreak of U.S. sub-loan crisis has made East Asian countries realize the importance of strengthening financial cooperation to enhance the capacity of preventing and coping with financial risks and improving regional financial markets. At present, economic cooperation in East Asian countries has made remarkable achievements, their development will towards the direction of free trade area in the future. However, financial cooperation in East Asia has just started, the legal mechanisms framework which formed in cooperation has yet to be perfect. Therefore, studying the financial cooperation in East Asia has a certain theoretical and practical significance. On the basis of studying the existing legal mechanisms of financial cooperation, this paper analyzed its shortcomings, and then put forward my own immature frame conception and suggestion about perfect law.This paper is divided into five parts of a total of about 30,000 characters. The specific content of the each part are as follows:The first part is an overview of the East Asian financial cooperation. Firstly the author reviews the background of financial cooperation in East Asian and briefly introduces the destructive impact to the economy and finance of East Asian during the Asian financial crisis. Since the IMF's response is so disappointing, East Asian countries decides to launch a multi-level and multi-field regional financial cooperation in East Asia to achieve relief funds integration, cooperation multiplication and cooperation mechanisms regionalizing, thus truly improve regional ability to guard against and defuse financial risks. Secondly, after analyzing based on the existing environment, the author summarized the disadvantage and advantage conditions for East Asian financial cooperation.The second part discusses the need for financial cooperation in East Asia . Firstly it expounds the financial crisis is the direct cause which led to the East Asian financial cooperation. In addition, it puts great significance to the creation of more stable and sound financial markets in regional countries. It can enhance the ability of resisting the impact of international hot money, maintain regional macroeconomic stability and ensure sustainable development of regional trade and investment. The third part is the introduction of the elements which should be taken into account in the East Asian financial cooperation, the study on global and regional financial cooperation framework can help to make the legal mechanism of financial cooperation in East Asia perfect. The condition of East Asian plays a decisive role on the principles and goals of the cooperation.The fourth part is the focus and the difficult part of this paper, the author discusses the construction of the legal mechanisms of financial cooperation in East Asian in detail, including the goal pattern choice of legal mechanisms and the legal basis and elements of cooperation mechanisms. Financial cooperation in East Asia can be carried out from the dialogue mechanism, the financial crisis relief, the financial inspection and monitoring and coordination of exchange rate aspects, forming a complete set of framework of legal mechanisms. The "Chiang Mai Initiative"(CMI) is the basic legal document of East Asian financial cooperation, the signing of other agreements are aimed at better implementation of CMI and to achieve its set objectives. In order to multilateralize the CIM , the "Joint Media Statement Action Plan to Restore Economic and Financial Stability of the Asian Region" further requires to reach a consensus on how to strengthen cooperation and safeguard regional financial stability, establish and improve the supervision mechanism, response mechanism on crisis, financial support system, taking necessary measures to promoting the bond market , improving regulatory framework and strengthen the bond market infrastructure.The fifth Part analyses China's positioning and strategic choice from the perspective of China's participation in the East Asian financial cooperation. China should take East Asian financial cooperation as an opportunity to speed up reform on domestic financial system and exchange rate system, to promote the international influence of RMB and build China's international financial center status.