The Economic Integration Of Greater China

The tremendous success of China's program of economic reform and the rapid integration of China into the global economy have prompted this study on the economic and financial integration between mainland China, Hong Kong, and Taiwan – a grouping sometimes referred to as Greater China. While there has been a plethora of analyses of China's economic interactions with other economies, this book fills the need for a thorough investigation of regional financial and real interactions – corresponding to the many exhaustive studies of such interactions between developed countries and between East Asian countries. Since real and financial integration has substantial implications for the efficiency of resource allocation and the efficacy of macroeconomics policy, Cheung, Chinn and Fujii offer clear analysis of the current state of economic integration of Greater China, thereby helping to gauge the potential role of China in the global economy. Prospects of a currency union in Greater China, an extreme form of integration, are also evaluated with respect to benefits and costs to the three parties. In addition, the authors provide complementary discussions regarding the degree of integration between China and several Pacific Rim economies, including those of Japan, Korea, Singapore, and the United States. Cheung, Chinn and Fujii provide an up-to-date assessment of mainland China's economic development and its integration with its neighboring economies, especially Hong Kong and Taiwan. This grouping is also known as Greater China. There are a number of approaches to assessing economic integration, and the authors present some standard measures – including trade flows, output movements, saving and investment correlations, and consumption comovements. They emphasize the measures based on some key parity conditions in international finance – real interest parity, uncovered interest parity, and relative purchasing power parity. While there is no perfect empirical measure of economic integration, the theoretical relationships between integration and these three parity conditions are well founded in economics. Moreover, the three parity conditions constitute a unified framework that can be used to assess the degree of real and financial integration, and thus offer a convenient way to investigate the interaction between these two types of integration. In addition, the authors evaluate the prospect of a currency union in Greater China, the most extreme form of integration. Prospects of China's continued integration with the world economy, and the implications of policies in Beijing and other Pacific Rim capitals are also discussed.

The fusion of know-how and capital from Hong Kong and Taiwan with the substantial labour resources on China has led to the emergence of a dynamic economy of 'Greater China' rivalling the USA, the European Union and Japan. What is the nature and trend of trade and investment within Greater China? What are the impacts on the world economy? With China's entry into the WTO, what are the problems and prospects of Greater China? These are some of the issues raised within Yun-Wing Sung's book.

Although China's economy has grown rapidly in recent decades, there are still very large differences between the economies of mainland China and those of Hong Kong, Macau and Taiwan. This book considers how far economic convergence between these four territories has occurred, and the prospects for increased convergence in the future.

Focusing on the impact of WTO disciplines, this book explores the WTO’s contribution to domestic reform, economic integration and dispute settlement of China, Taiwan, Hong Kong and Macau: the four WTO Members in Greater China.

In the post-Cold War world, the United States and China together forms one of the most significant relationships in the Asian Pacific region. However, this relationship cannot be considered in isolation from the dynamic economic integration of China with Hong Kong and Taiwan into what is now called 'Greater China'. This volume draws on a wide range of international expertise to examine the nature of the US economic interaction with Greater China. Set against the historical and political background of Sino-American relations, the contributors discuss in detail trade and investment flows between Greater China and the United States as well as China's entry into the World Trade Organization. The impact on regional trading partners and global trading organizations is also evaluated.

A balanced analysis of a sensitive subject: Hong Kong's future prospects.

This study assesses the current state of economic integration in Asia - in particular in East and South East Asia- and analyzes the prerequisites for a sustainable path of economic integration, using the background of the EU experience as a benchmark.

Contemporary relations between Greater China and Japan have been conditioned both by differing responses to the impact of Western colonialism during the mid-nineteenth century and the legacy of the Cold War. There are mutual suspicions: the Chinese fear of a Japanese military revival and the Japanese concern over increasing Chinese economic competition and territorial ambitions. Robert Taylor recognises the mistrust in Sino-Japanese relations, but also sees shared advantages in this traditionally adversarial relationship. The Chinese are currently modelling their economic strategy on Japan's developmental experience, even though China's policies and institutions have distinctive features and differing agendas. The study also examines the growing momentum towards sub-regional integration; rivalry between Greater China and Japan is giving way to competition between regional economic blocks and corporate entities. Greater China and Japan explores the ambiguous relationship between the two countries and states that its development is crucial to the future of the region in the twenty-first century.