| China has experienced unparalleled economic growth | | | | investments that are entering other Southeast Asian |
| within the last two decades. This growth has | | | | nations. China has a decidedly larger share of foreign |
| undoubtedly earned China the position of a major | | | | investment funds than its neighbors. Especially in |
| economic power in Asia. China ranks slightly behind | | | | Southeast Asia, the competition for foreign investors |
| Japan in economic power and marginally behind the | | | | is intense with almost half of these funds now going |
| United States in purchasing power. In world rankings, | | | | to China and the rest of the nations of the area |
| China is the sixth largest merchandising nation in the | | | | realizing an almost 50% reduction in foreign |
| world, the twelfth largest exporter of commercial | | | | investment funds. Many experts note that the |
| services, and the largest beneficiary of foreign direct | | | | majority of China's growth has been a result of the |
| investments. China's ascendancy has been furthered | | | | opening of China's markets to foreign investors. |
| by its entry into the World Trade Organization in late | | | | Although doing business in China remains difficult in |
| 2001. Although there is some argument that the | | | | some sense, the opening of the economy has been |
| actual growth of China's economic status is not as | | | | a boon not only to investors, but, obviously to China |
| high as the Chinese government presents, however | | | | as well. Before China's economic rise, Japan was the |
| there is little doubt that China has officially entered | | | | only nation in Southeast Asia to be recognized as a |
| the global stage as a major economic player. | | | | major world economic player and they were also the |
| Many experts are so impressed by the exponential | | | | recipient of the majority of foreign investment funds. |
| growth of China's economy in recent years that they | | | | However, as can be imagined, Japan has suffered |
| have referred to the nation as "the worlds | | | | financially as a result of China's growth in that as |
| manufacturing center". Surely, as China has become a | | | | foreign investors recognize China's economic |
| major exporter of world goods, this description, | | | | potential, the bulk of foreign investments funds have |
| although exaggerated, is largely descriptive of China's | | | | shifted away from Japan and into China. Additionally, |
| position in the world economy. However, this growth | | | | Japan has had to decide whether to invest some of |
| has been questioned by some experts and has | | | | their own funds into China's economic market and |
| worried other Asian nations. China's growth within the | | | | growth. Although they have been reluctant to invest |
| Asian market itself has increased steadily in the last | | | | in China's growth in the past, there may now be a |
| two decades; a phenomenon largely unequaled by | | | | growing trend toward Japanese investments in China |
| any other nation in the world. | | | | with the planned relocation of several Japanese |
| With other nations within Asia, as well as with nations | | | | businesses. Some experts predict that China's growth |
| outside of the geographic area, China's exports have | | | | will benefit its neighbors as China begins to invest in |
| far exceeded their imports. This growth has excited | | | | other Southeast Asian nations. In fact, China herself |
| the investment sector and resulted in the inflow of | | | | has asserted that her economic growth should not |
| global capital into the nation's economy. Although | | | | make the surrounding nations nervous but should |
| China's exports are still a relatively small portion of | | | | instead be a welcomed part of the entire area's |
| the Southeast Asian totals, most experts insist that | | | | growth as China promises to share the wealth. |
| China will be the areas largest exporter of goods | | | | Although some individuals see China's explosive |
| within the decade. Experts have also noted a steady | | | | growth as a recent event, it has actually been a long |
| trade surplus with western nations such as the United | | | | time coming. Since China opened its economic and |
| States and the European Union that are likely to | | | | physical borders to investors in the early 1990's, the |
| sustain and encourage China's economic growth. | | | | nation has been the beneficiary of much of the |
| Part of this economic growth has been fueled by | | | | world's investors who were searching for new |
| China's attraction as a tourist destination. The past | | | | markets in which to invest. However, some experts |
| two decades has seen a rise in the influx of tourists | | | | predict that the general political instability of the |
| as well as the increase in both inbound and outbound | | | | region may well be the downfall of China's economic |
| business travel. Just like the rise in China's economic | | | | growth as these experts wonder how long such |
| growth, its tourism market has also experienced | | | | growth can be sustained especially to the |
| significant increases. Currently, China has the world's | | | | disadvantage of the rest of the area. These same |
| fastest growing tourism market with over two million | | | | experts predict that the only way for other |
| visitors each year in recent years. And as the nation | | | | Southeast Asian nations to compete will be to |
| continues to grow in a business sense, more and | | | | develop similarly effective trade policies as has China. |
| more individuals will be traveling into and out of the | | | | However, these nations, bogged down by internal |
| nation. There has been some concern that China's | | | | political problems and poor leadership may not be able |
| growth as an exporter of consumer goods may | | | | to keep up. China's rise in recent decades from a |
| render other exporters somewhat impotent in the | | | | poor country with a stagnant economy has been |
| global consumer goods market. | | | | noted as a huge success story. |
| However, some experts argue that this will not occur | | | | China has been one of the few nations to realize |
| because the increasing globalization of the world | | | | steady economic growth even during periods of |
| consumer goods market is likely to render other | | | | economic depression. Some analysts insist that this |
| nations equally competitive in the production and | | | | growth has put China behind only the United States |
| exportation of such goods as communication | | | | as a total world power and some even assert that |
| technologies and electronics and that the production | | | | the next few years may indeed see China overtake |
| chain that exists throughout nations, especially in the | | | | the United States as a major world power in every |
| case of Southeast Asia, will only be enhanced by the | | | | respect, not just economically. Certainly, China's rise |
| growth of such nations as China and their | | | | as a world player in economics as well as politics has |
| ascendancy as a world economic player. However, | | | | opened communications between China and the U.S. |
| experts also predict that, especially in the areas of | | | | as well as with the rest of the world. China is now |
| clothing and textiles, China's growth may result in | | | | the United States' second largest trading source and |
| increased competition in the Southeast Asian market | | | | many U.S. investors have flooded China with U.S. |
| that may render competing markets unable to keep | | | | investment funds. However, as some analysts predict |
| up. Although this will surely keep market prices low, it | | | | that China will overtake the U.S. as the world's largest |
| will also give China a distinct advantage over its | | | | economy within the next decade, other analysts |
| Southeast Asian neighbors and have an undesired | | | | argue that, even if China continues to realize |
| effect on the wages and profit margins of industries | | | | sustained economic growth, it does not have the |
| in those other nations. | | | | political structure to overtake the U.S. as a world |
| There is also some concern over the amount of | | | | superpower. |
| funds that are flowing into China as opposed to the | | | | |