ABSTRACT
The normalization of China’s economic relations with the rest of the world
and its participation in the globalization process rank among the most important developments of the past decades. The resulting change in the
global balance of economic activities has had (and continues to have) far-
reaching implications for the world as a whole and for Asia in particular,
with Korea as a case in point. The fiercer competition from China in the
trade, as well as in the FDI area, has fuelled concerns in neighbouring
emerging economies, which tend to perceive China more as a threat than as
an opportunity. Although these fears may be partly ill founded, it is worth
noting that the necessary adjustments imposed by the integration of China in regional and global production networks constitute a major challenge,
which further compounds the difficulties already encountered in the wake of
the 1997-98 financial crisis. Moreover, China’s rising economic clout is
deeply affecting the conditions for institutional economic cooperation in
East Asia.
