ASEAN Gears Up for Trade Pact With China
Southeast Asian nations may be wary of China’s emergence as an economic power, but they hope to make the best of a potentially ominous threat by liberalizing trade.
Leaders of the 10-member Assn. of Southeast Asian Nations are expected to agree on a timetable for negotiating a deal with China this week during their two-day summit in Phnom Penh, Cambodia.
Business executives and government officials in countries such as Thailand, Malaysia and the Philippines figure that whatever they make to sell to the global market, giant China -- with its massive supply of low-cost labor and natural resources -- probably can make it cheaper.
But realizing there’s little they can do as investors shift money into China and away from other Asian economies, many are hoping to find ways to tag along behind China’s anticipated growth. Beijing surprised many in the region about a year ago with an offer of a free-trade deal.
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