Shaping factors of EU–East Asia relations

Six shaping factors will determine the short-to-medium term outlook for East Asia. Two of these are geo-political flashpoints, with implications beyond the region—North Korea and China–Taiwan cross-strait relations. For both of these at least some logic of a’ solution’ will need to be worked out. Intra-regional tensions between China, the fastest growing economy in the world, and Japan, the second largest economy in the world, will need accommodation and compromise. Fourthly, the relationship between the US and China remains ambivalent, veering between strategic partnership and strategic competition. Long term stability in the region will require that the US–China relationship becomes more predictable, which will only be possible if both players define their long-term interests innovatively and in different ways. Probably the most important shaping factor for the region is the domestic political economy of China. The nexus between Chinese economic growth and its domestic political stability needs to remain in tact—without economic growth no political stability, while stability is a precondition for continued growth. These five shaping factors together will determine the scope of multi-lateral problem-solving frameworks for the region. The Kuala Lumpur first East Asia Summit has shown the determination of leaders in the region to co-ordinate, share information and exchange views. However, the decision not to go beyond the current institutional set-up and to retain ASEAN’s centrality points to a continuation of the present ‘shallow’ integration for some time to come.