Economic Integration In East Asia: What Is The Role Of China?

Economic integration in East Asia has gradually been taking place in the past few decades, and nations in the region recognize the need for further cooperation. In this paper I deal with some fundamental issues in the process of economic integration. I analyze what the role of China should be and argue how Beijing should determine its strategy. The countries in East Asia are very diverse and the economies are in very different development stages, and I deal with the disputes in the creation of policy criteria in the preparation towards monetary union. I use comparative methods in analyzing the different economies, political systems, and diverse cultures in determining China's role. Furthermore, I use the criteria presented in the Maastricht Treaty to identify the policy variables in the process of monetary integration to find the consensus among the East Asian countries.China is the economic powerhouse in the region and in this paper I argue that China will benefit economically and increase trade with its neighboring countries, leading to central position in East Asia for China. More importantly the economic criteria I use imply that there is a wide gap between countries suggesting that the integration in East Asia is far more a difficult task than in Europe. Besides economic barriers, cultural issues, and the political presence of USA in the region are major concerns.The future of East Asia depends much on China's sustainable economic development, and China has accepted its role as a regional leader. However, the competitive advantage of East Asia is based on economic integration and cooperation, and the need has already been identified.