China’s International Economic Institutional Choice In East Asia Under The Background Of America Rebalancing To ASIA-pacific Strategy

After the 2008 financial crisis, the United States suffered from the rising unemployment and decreased export. At the same time, the development of Asia gained much momentum. The new hope of economic integration of East Asia comes into being. Institutions that promote the regional integration appeared, for example, the China, Japan and South Korea FTA(CJKFTA) and Regional Comprehensive Economic Partnership(RCEP). The America’s influence in East Asia is decreasing. Therefore, the United States put forward the Asia Rebalancing strategy of which the TPP is an important part. The America oriented TPP aims to revitalize its national economy, but it has other intentions, that is, to contain the development of China. As a regional great power, China is developing very fast these years and its comprehensive strength is increasing. The United States was afraid that with the increase of power China may dominate the integration process of East Asia. Faced with the situation in East Asia, In order to reduce the negative effects brought by TPP, China has to reinforce its influence in the process of Asia-Pacific economic integration. In choosing an international institution, countries always consider to maximize the national interest(not just the economic profit). China is actively promoting Regional Comprehensive Economic Partnership(RECP)and the negotiations with CJKFTA, therefore, it is necessary to analyze the transaction cost and profit of joining it, so as to have a clearer direction in choosing and establishing the institution.Under the background of America Rebalancing to Asia-Pacific Strategy, the Economic Rebalancing Strategy TPP(Trans-Pacific Partnership) dominated by America has great influence on China. Under the present situation, the establishing of TPP gives China much pressure to choose and strength its international institutions in East Asia. In order to make a reasonable international institution choice that can maximize the national interest, it is necessary to analyze the transaction cost and profit of the institutions. Based on the existing transaction cost study, this thesis puts forward the transaction cost-profit theory, which analyzes in the three aspects, namely, “uncertainty”, “sensitivity of issue-area” and “free rider problem”. The profits refer to political profit and economic profit in this thesis. this thesis put forwards the transaction cost-profits theory to analyze the China’s institutional choice frame in East Asia, expecting to analyze China’s international institution choosing strategy in a more deep and comprehensive way.