The Association of Southeast Asian Nations (ASEAN) and China are playing pivotal roles in the evolving dynamics of East Asian regionalism. This paper argues that these new bilateral regional initiatives of ASEAN members and, in particular, the ASEAN-China free trade agreement (ACFTA), are driven by ASEAN’s desire to maintain its export growth based on the regional production networks promoted by multinational corporations. The paper undertakes an empirical analysis of ASEAN-China bilateral trade and the ACFTA to understand the actual prospects for Southeast Asian countries to expand their market access. It also puts forth some implications of the observed changes in the market access scenario of ASEAN for their industrial development process.

August 29, 2008.