The economical globalization has led the region economic cooperation development. In 2002 Euro was released, the European integration is being made an epoch . US and Canada, Mexico have set up the North America free trade area in 1994, and it will start the Free Trade Area of the Americas negotiations. Under this background, this thesis set out the cooperation between China and ASEAN with the approach New-functionalism. This thesis divides into six chapters to study the cooperation between China and ASEAN cooperate of economic cooperation with the China, the first chapter is an introduction, in the second chapter Neo-functionalism will be explored . In the third chapter, the modernization of China, the evolution of ASEAN and subsquentlly the motive of cooperation from both of them are the major point to be analyzed. Last but certainly not least, whether the Neo-functionalism can be applied to explore the case of the PRC-ASEAN free trade area, will be comprehensively analyzed.

U.S. led Western Democracies have imposed comprehensive sanctions on the PRC government by ceasing high-level exchanges politically and canceling bilateral cooperative agreements economically in response to the PRC¡¦s 1989 crackdown on Tiananmen Square demonstrators. At that time, former paramount leader Deng Xiaoping brought up a ¡§24 character¡¨ strategy for China¡¦s foreign and security policy: ¡§observe calmly; secure our position; cope with affairs calmly; hide our capacities and bide our time; be good at maintaining a low profile; and never claim leadership.¡¨ PRC did not gradually disengage from the U.S. led isolation until the U.S. government resumed high-level exchanges in 1993. The end of the Cold War meant that China was the major beneficiary of greatly reduced superpower penetration, and this strengthened the interregional dynamics of the Northeast and Southeast Asia. After PRC disengaged from diplomatic isolation made by U.S. - led Western Democracies and began to have the power to influence regional security affairs, a China-centered East Asian regional security complex was born. From lack of confidence in constructing in East Asian regional security complex in the mid 1990s, China became active and could rule the RSC after late 1990s. The goal of PRC¡¦s security strategy is to form an anti-U.S.-led East Asia military alliance to protect its national security interest. In the existing regional security complexes, the framework of ASEAN Regional Forum was separated into ¡§ASEAN-China Strategic Partnership¡¨ and ¡§non ASEAN-China Strategic Partnership¡¨ camps in 2003. China established the Shanghai Cooperation Organization in 2001 and allowed one of the axis of evil states- Iran to participate in the Organization in 2005. The Shanghai Cooperation Organization will develop into an anti-U.S.-led military alliance under China¡¦s manipulation. In 2003, the U.S. government urged China to play a responsible stakeholder role in the Six-Party Talks instead of being a draft- making secretary. The PRC¡¦s participation in constructing East Asia regional security complexes is analogous to a state that clothed neo-realism but harangued regional security interdependence. On the one hand it reprehends the U.S. East Asia military alliance as an out-of-date cold war thinking. On the other hand, PRC¡¦s military expenditure from 1996 to 2006 shows an annual growth of more than 10 percent. The mutual security in East Asian regional security complexes are still being constructed. China participates in The Six-Party Talks and ASEAN Regional Forum while sometimes it will depend on particular circumstances to make certain contributions, but rules the Shanghai Cooperation Organization with its full strength to keep it operate as China¡¦s political will. The aim of this thesis is to examine the changing characteristics of the regional security complexes in East Asia. The thesis focuses on the foreign policies and strategies of PRC¡¦s participation in those security complexes from mid 1990s. Finally, this thesis will to explore what will impact on the East Asian regional security complex when China participates in and try to construct it, and who will construct whom.

Thesis (M.A. in Security Studies)--Naval Postgraduate School, December 2003. / Thesis advisor(s): Robert M. McNab, Gaye Christoffersen. Includes bibliographical references (p. 83-78). Also available online.

In the contemporary East Asian security context, free trade is a double-edged sword that simultaneously secures and threatens the primary security referents and interests of periphery and semi-periphery states. This thesis aims to provide a much deeper and comprehensive understanding of the linkages between security and trade by examining the experiences of smaller and weaker countries in East Asia, in particular, Taiwan, Singapore, the Philippines and Malaysia. I argue that in their quest to enhance, promote and secure their state-centric (“statist”) and/or people-centric (“humanist”) security referents, these countries have learned to re-imagine and re-invent the utility of free trade at the start of the twenty-first century. Accordingly, trade has become an integral function of national security, particularly for East Asian states that have a marginal geo-economic size and geo-political position. However, to this point very little has been done in explaining the impetus and dynamics behind these linkages based on the overarching assumption of “cohabitative security” or the view that security encompasses both statist and humanist dimensions. Furthermore, there is a dearth of comprehensive theoretical and empirical analyses concerning linking efforts and strategies by the non-major powers in East Asia. This thesis attempts to address those gaps. Using a qualitative comparative method, I analyse both statist and humanist forms of security-trade linkages. On the one hand, I examine how small East Asian countries utilise free trade to promote, enhance and secure the primary referents of their national security policies and strategies. And on the other, I investigate the roles of security issues and threats (traditional and non-traditional) in the continuing relevance and proliferation of free trade in the region. To fulfill these objectives, the thesis performs three main tasks. First, I theoretically reconfigure the security concept by amalgamating the statist and humanist dimensions of security to establish a “cohabitative security” framework that will serve as the operative definition of security for this research. Second, I empirically analyse the linkages between cohabitative security referents (statist and humanist) and various types of free trade (multilateral, minilateral and bilateral). Third, and lastly, I outline three main themes based on the findings generated from the case analyses: (i) high levels of internal and external insecurity; (ii) multidimensional and multidirectional nature of security concepts, contexts, and threats; and (iii) marginal geo-economic size and geopolitical position. The thesis concludes by arguing that free trade is irrefutably being utilised by periphery and semi-periphery countries to promote, enhance and secure their statist and/or humanist security referents and interests. The rationales and motives behind these linkages vary significantly from one country to another. For example, in Taiwan, free trade might be viewed as a sovereignty-upgrading mechanism; in Singapore, a defence-upgrading tool; in the Philippines, a development-upgrading instrument; and in Malaysia, a diversity-upgrading apparatus. However, it is important to note that while the constructed rationales for these linkage efforts usually sound altruistic (that is, to advance national security interests) the real motives behind them are often less than benevolent (that is, to advance a regime, a party or a privileged group’s vested interests). Furthermore, the steady proliferation of preferential bilateral and minilateral trade amid all the difficulties impeding multilateral trade at the WTO has provided small countries in East Asia a strategic platform for pursuing a broad range of security interests – altruistically or otherwise. However, considering that free trade works like a double-edged sword, I make the corollary argument that states attempting to co-habit their security interests and trade agendas are essentially “trading security”. The reason is that for every additional security that a linkage provides, a corresponding insecurity is reflected in other referents. This is clearly illustrated by the four cases examined in the study. With respect to “statist linkages”, Taiwan’s linkage efforts can lead to the island’s complete assimilation with China; while Singapore’s linkage attempts may result in the city-state’s failure to strategically balance conflicting American and Chinese interests in the region. With respect to “humanist linkages”, the Philippines’ linkage attempts have preserved uneven economic development and reinforced the oligarchic system and patronage culture; while Malaysia’s linkage efforts have perpetuated racial inequalities and further legitimised the UMNO-led Barisan Nasional. Finally, in attempts to address both traditional and non-traditional security threats, East Asian countries (via their membership in APEC and ASEAN) have made some noteworthy progress in broadening and widening the respective agendas of these two regional organisations. Despite the limitations of their compliance mechanisms (or lack of them in some issue areas), the fact that both state and human security issues are now being openly discussed vis-à-vis free trade policies underlines the ongoing progress toward East Asian linkages.

Purpose - The purpose of this thesis work is to explore how the fully implemented AEC affects cross-border trade in the ASEAN, and based on the findings determine how multinational companies should adapt their logistics strategy to the change. To achieve this purpose the following research questions will be answered: How will the AEC affect the distribution of goods in the ASEAN? How should a multinational company adapt their logistics strategy to the new conditions? Methodology - To explore the opportunities and threats regarding the fully implementation of AEC, the authors had to complete 4 phases including a pre-study, literature study, case study, and data analysis. The pre-study was about the basics of ASEAN. The Literature study was mainly about Logistics Management, Strategic Management, Contingency Theory, and AEC, and its aim was to find out the key factors affecting logistics strategy and how the AEC affects them. In order to locate what opportunities and threats that arise along the affected factors, a case study was conducted by studying a real-life example on a case company, through interviews and tariff tables. Additionally, data analysis was done throughout the thesis work by structured methods and a PEST analysis. Findings - Literature study showed that the affected factors where tariffs, NTBs, ROO, trade facilitation, customs integration, standards, and TBTs. After analysing how the affected factors will change the business environment by a PEST analysis, the authors found that the most crucial threat is increased competition and the greatest opportunity is in the ease of moving goods and the size of the market. Hence, for a multinational company, the best strategy in this case is a Strategic choice strategy, which is both proactive to the change and somewhat able to influence the business environment. The case study showed that in the current situation, the best economic logistics strategy is through Malaysia, no matter end destination. After the fully implemented AEC, the Free Trade Agreements for each country will be the deciding factor. Implications - This thesis is made in ASEAN for multinational companies who is considering in which ASEAN member country to use as an assembly point for the ASEAN market after the implementation of AEC. For these companies, this study can be a fundamental part of their decision. Research limitations - In this thesis, the affected factors known by literature has been considered when evaluating the consequences of a fully implemented AEC. The case study is including half of the ASEAN members and in a given order. In addition only the external business environment, and more specific the general environment, was taken into consideration. In further studies, a benchmark could be performed in order to find literature unknown factors, all ASEAN members should be included in various combinations of orders, and considering the whole business environment.

There is evidence that globalization, economic assimilation and integration among countries and their financial markets have increased correlation among stock markets and the correlation may in turn impact investors’ allocation of their assets and economic policies. We have conducted a quantitative study with daily stock index quotes for the period January 2000 and December 2009 in order to measure the eventual correlation between the markets of ASEAN+3. This economic integration consists of; Indonesia, Malaysia, Philippines, Singapore, Thailand, China, Japan and South Korea. Our problem formulation is:Are the stock markets of ASEAN+3 correlated?Does the eventual correlation change under turbulent market conditions?In terms of the eventual correlation, discuss: is it possible to diversify an investment portfolio within this area?The purpose of the study is to conduct a research that will provide investors with information about stock market correlation within the chosen market. We have conducted the study with a positivistic view and a deductive approach with some theories as our starting point. The main theories discussed are; market efficiency, risk and return, Modern Portfolio Theory, correlation and international investments. By using the financial datatbase, DataStream, we have been able to collect the necessary data for our study. The data has been processed in the statistical program SPSS by using Pearson correlation.From the empirical findings and our analysis we were able to draw some main conclusions about our study. We found that most of the ASEAN+3 countries were strongly correlated with each other. Japan showed lower correlation with all of the other countries. Based on this we concluded that economic integration seems to increase correlation between stock markets. When looking at the economic downturn in 2007-2009, we found that the correlation between ASEAN+3 became stronger and positive for all of the countries. The results also showed that the correlation varies over time. We concluded that it is, to a small extent, possible to diversify an investment portfolio across these markets.

At the core of this study there lays a paradigm that existing explanation of regionalism and inter-regionalism process neglect the essential, and arguably the most advanced level of it – the cognitive level of regionalism. The theoretical contribution of this study is the concept of “cognitive”/ conscious regionalism”. This dissertation argues that without that element, regional and inter-regional cooperation cannot be advanced and they remain shallow processes. This study argues that the gap between Asia and Europe is a cognitive one, rather than physical. The Asia-Europe Meeting (ASEM) has been facing severe criticism because of the low effectiveness of its governance. This dissertation explains the reason behind the limits of ASEM in looking into the deeper levels that determine the inter-regional cooperation: level of cognition of the actors involved. The research not only explains the limits but also identifies the contributions of the ASEM as a bridge between the regions and their peoples’. Creating the venue for interaction contributes to the realization and awakening of the perception of what is “Asia” and what is “Europe” in Asia-Europe Meeting. Incorporating cultural and intellectual agenda of cooperation and including the civil society into the process not only creates the mutual understanding and acquisition of exchanged knowledge but also to pluralization of actors involved in the inter-regional process. Both in terms of actors and of cultural factors of cooperation, the Association of Southeast Asian Nations (ASEAN) plays the pivotal role in the ASEM process. The process of sustainable interaction shows institutional learning happening between ASEAN and ASEM that proves the idea of acquisition cognition through interaction also between institutions. This dissertation’s theoretical contribution is offering the concept of ‘cognitive regionalism’. Cognitive regionalism is explained and analyzed through ideas of awakening, acquisition and affiliation. The analysis is done on four levels of inter-regional, sub-regional, member government and civil society. The aspects included in these levels are: regional identity formation, institutional representation, member government’s commitment to ASEM process and civil society inclusiveness in “bottom-up” inter-regionalism. The empirical contribution of this research is in the richness of extensive interviews with various stakeholders including Track 1, 1½, 2 and 3 representatives from both across Asia and Europe. Methodology is a combination of interpretative, policy-tracing of official documents, official press releases and an essential participatory observation and field work. The originality of this study is twofold: (1) the comprehensive explanation of the role of culture, and norms in the inter-regional cooperation focusing on the third pillar of ASEM particularly and (2) taking the ASEAN’s perspective in analysis.

To compete effectively in the global economy, the Association of Southeast Asian Nations [hereinafter ASEAN] needs supranational legal infrastructure that facilitates international business transactions. As such, this thesis examines choice of law issues in contract and tort in Canada, Louisiana, the Second Restatement on Conflict of Laws 1969, the United Kingdom, the Rome Convention on the Law Applicable to Contractual Obligations 1980, and Singapore. Using a proposed Model Law on contract and tort choice of law in ASEAN, this thesis will demonstrate that despite differences in the existing choice of law rules, a uniform regime may nevertheless be formulated without significant compromises. On the broader level, this thesis proposes a uniform conflict of laws regime in ASEAN. Using the analogy of contract and tort choice of law, this thesis argues that divergences may be reconciled and a uniform regime forged. It is desired that this thesis will contribute towards the uniformizing of conflict of laws in ASEAN.

In recent years, the Association of Southeast Asian Nations (ASEAN) has become the main driving force of the economic dynamism of Southeast Asia. Japan, being the economic leader of the Southeast Asian countries during the 1980s and the early 1990s, is in a declining position in terms of leadership. Japan has also been experiencing economic recession since the mid-1990s and displaying only subtle signs of recovery recently. China, however, has taken the advantage of being the most demanding market of the region and already established the functional mechanisms of economic integration with ASEAN. This economic configuration of the region is the main inquiry of this study. Although the growing economic integration of China with ASEAN is fairly recent, it is generally discussed in the academic circles, that China has been taking the lead as an economic player in Southeast Asia. However, it is argued in this study that China is not yet ready to replace Japan as an economic leader of Southeast Asian in the long-term. Given the recent economic interaction between ASEAN and China, it is early to predict that China would replace Japan&#039 / s leading economic position. In addition to that, China&#039 / s blooming economy with its domestic crisis potential and China&#039 / s long-erm geo-strategic interests in the South China Sea should also be taken into account while analysing economic potentials of Japan and China in the ASEAN market. The study examines the related literature with a comparative methodology including the analysis of the recent statistical data and survey of the news.

Indonesia, Malaysia and Singapore are of key strategic importance for Australia. These three nations form the geographic and arguably the political core of the Association of Southeast Asian Nations (ASEAN). The growing resilience of ASEAN over the last quarter of a century has been a major factor in Australia's secure strategic outlook. In addition, the Indonesia - Malaysia - Singapore triangle lies across the most feasible military approaches to Australia. Hence strategic cohesion in this triangle greatly reduces the prospect of any kind of military threat to Australia.