ABSTRACT

China's interest in regional organizations is not a natural consequence of its economic reforms or open-door policy, but rather a calculated response to unexpected and changing circumstances. As China and ASEAN became more economically important to one another, especially in light of Japan's prolonged recession, they developed a growing basis for increased cooperation and structured interaction. Both China and the ASEAN states believe that their relationship can enhance domestic regime stability for all, not only by promoting economic performance through freer trade, but also by buttressing the coercive capacity of governments in dealing with non-military threats. China has been cooperating ever more closely with Shanghai Cooperation Organization (SCO) states in combating internal and external threats emanating from terrorism, Islamic fundamentalism, and separatism. China has since successfully tied its political, economic and security interests and international standing to its promotion and institutionalization of all kinds of regional and sub-regional cooperation in Asia.