ABSTRACT
The economies of China, especially in the special economic zones, Hong Kong, and Taiwan, are becoming increasingly interlinked and involve Southeast Asian Chinese big business as well. The Japanese invasion and three-and-a-half-year occupation of Southeast Asia was a turning point in our history. National Security Council paper 48/1 proposed “a strategic offense in the ‘West’ and a strategic defense in the ‘East’ in which Japan would have a pivotal role.” The Association of Southeast Asian Nations states find Japan a discomforting and difficult trading and economic partner and an unacceptable political and security leader. The Asia Pacific Economic Cooperation forum takes off and provides the institutional framework for continuing United States (US) economic commitment and investments. Domestic US economic pressures increase, leading to a reduction of the US military presence in the Asia Pacific region, a tougher approach toward redressing the trade deficit with Japan, and decreasing US economic involvement in Southeast Asia.
