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fracturing

China’s divisive role in the East Asia Forum

The recently concluded East Asia Forum (EAF) has highlighted the contentious role of a growing China in regional affairs. For an event that was intended primarily to lay the foundation for a huge Free Trade Agreement (FTA), the EAF has been at least as notable for a profound, perhaps fatal, rift in the Association of Southeast Asian Nations (ASEAN).

The proposed East Asia Free Trade Area (FTA), including around a third of the world’s global economy, is intended to capitalise on this region’s current and projected economic strength. While there are many thorny details to be resolved, not least trade advantages flowing from China’s artificially low currency, there is a general sense that the FTA process will continue to be developed.

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