China’s Rise and its Impact on the East Asian Economy

This paper examines China's future prospects for economic development and the related impacts on the East Asian economy and the economic integration of the region. The main issue to China's economic growth is the contradiction between the socialist nature of its political system and its market-based economy. The overall assessment is that China will be able to manage the transformation of the country into a steadily growing market economy. China's rapid export growth and increased market share in the world economy presents a new opportunity for East Asian countries. The rise of China will also be accompanied by an expansion of a consumer market, which will broaden business opportunities for East Asia. Despite interdependence between East Asian countries, a regional trading bloc embracing East Asia has not yet been created. Future prospects for realizing a regional free trade agreement in East Asia in the foreseeable future are not encouraging.