[No 2006 ‐ 05]

*Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)


TABLE OF CONTENTS
SUMMARY........4
ABSTRACT .........5
INTRODUCTION...........8
1. AIMS AND METHODOLOGY ............9
2. ASIAN TRADE PATTERN AND REGIONAL INTEGRATION..................10
3. ADVANCED ASIAN ECONOMIES: THE SHOCK OF THE INTERNATIONAL REORGANISATION
OF PRODUCTION...............14
4. EMERGING ECONOMIES: THE THREAT OF CHINA’S PRICE COMPETITION............19
CONCLUSION . .......24
REFERENCES..........26
FIGURES.................33

-----ABSTRACT---
The emergence of China has intensified the international segmentation of production
processes within Asia, but has not created an autonomous engine for the region’s trade, as
Asia still depends on outside markets for its final goods exports. The reorganisation of
production has weakened the position of the advanced economies (Japan and the US) in
Asia’s trade, but up to now has not severely affected the position of the emerging Asian
economies (Malaysia, Philippines, Thailand). However, the surge of China’s exports and
the decline of its export prices, suggest the risk of a downward spiral of cost-competition,
while the deterioration of China’s terms of trade raises the question of the sustainability of
its recent growth strategy.