國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
2-19
2.2.2 The Geographical Value of Southeast Asia (1) Geographical location and natural resources
Southeast Asia is located amid the mainland China, India, the Indian Ocean, Australia and the West Pacific, composed of the peninsula, the islands and inner sea. Peninsula contains the Indochina Peninsula and the Malay Peninsula. The islands are mainly composed of large and small islands amid Indonesia, Malaysia and the Philippines. The larger islands are Sumatra, Borneo, Java, Sulawesi, West New Guinea, Mindanao andLusong Island.
The South China Sea is the most important inner sea. With the exploration of rich fisheries and oil resources, the South China Sea was in a dispute in recent years. Malacca Strait and the Sunda Strait are also important straits, which control the maritime lines from the Indian Ocean to the Pacific Ocean.
Southeast Asia is located in the crossroad amid Eurasian continent, the Pacific Ocean, the Indian Ocean and Oceania. It is the world’s major air and sea transport hub, connecting Australia, New Zealand in the southeast, China, Japan and South Korea in the north, and India, Arabia, Africa in the west. In recent years, oil as the main energy was transported by ship. The strait which can control the entrance of vessels plays an important role, and the strategic importance of Southeast Asia is rising subsequently.
(2) Regional economy and trade
In August 1967, Indonesia, Malaysia, the Philippines, Singapore and Thailand issued a joint declaration in Bangkok to establish the Association of Southeast Asian Nations (ASEAN) based on the pursuit of a common vision, and a cooperative community. Since 1984, Brunei, Vietnam, Myanmar, Laos and Cambodia have joined, forming the current government organization with 10 official members.
‧
Southeast Asian countries recognize the importance of mutual cooperation after the financial turmoil, so pay more attention to the regional economic integration. In addition to integrating the internal development through ASEAN, Southeast Asian Nations actively signed free trade agreements (FTA) with the external partners. For example, in 2004, the ASEAN signed “China- ASEAN Agreement on Comprehensive Economic Cooperation Framework on Trade and Goods” with China, in the direction of promoting the establishment of free trade agreement area (ASEAN plus one).
In 2010 “China-ASEAN Free Trade Zone” was launched, which is the world’s most populous free trade zone and the world’s third largest, following the European Union and North American free trade zone. The free trade zone is beneficial to the participant countries, providing a mutually beneficial opportunity and achieving an amount of win-win progress. In 2002 when agreement was first discussed, bilateral trade volume was about US 54.8 billion.
By 2014, bilateral trade volume increased to 480 billion, an increase of 9 times within 12 years and an average annual 20% growth rate. Two-way investment increased from 3.3 billion dollars in 2003 to 12.2 billion in 2014, which is about 4-time increase. At present, China is the largest trade partner of ASEAN, and ASEAN is China’s third largest trading partner. The two-way investment between China and ASEAN has accumulated to more than 150 billion US dollars.17
The geographical proximity between China and Southeast Asia provides the potential and tacit understanding of economic and trade cooperation.
Generally speaking, the farther distance is between countries, the lower possibility of trade interchange is. This is why countries spent most of time on adjacent countries.18 China still maintain close relations with neighboring countries even if it has become the world’s second largest economy and
17 China FTA Network (2015, Dec 2). Gao Hucheng Is Interviewed by the Xinhua News Agency on the Successful Signing of the China-ASEAN FTA Upgrading Protocol. Retrieved from:
http://fta.mofcom.gov.cn/enarticle/chinadmen/endmnews/201512/29597_1.html
18 Lola Caballero Laporta (2015, May 26). The Maritime Silk Road; China and The ASEAN. THE FINAL REPORT OF DEGREE IN INTERNATIONAL BUSINESS AND MARKETING. Retrieved from:
http://repositori.upf.edu/bitstream/handle/10230/24987/Caballero_2015.pdf?sequence=1
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
2-21
established business relations with many countries in the world.
ASEAN countries have formed a market and the need of infrastructure, such as the extension of roads, railways and other transportation, will increase subsequently. China sped up the pace of supportive infrastructure to draw the ASEAN countries under the assessment that ASEAN is to be a manufacturing base and a huge market. Chinese government is strengthening the link to Ho Chi Minh City, Phnom Penh, Bangkok, Vientiane and other cities by using Kunming as the start point. China has invested funds and technology to participate in the construction, in order to strengthen cooperation with Southeast Asian countries and focus on the profitability of regional economic integration.
2.2.3 The Geographical Value of Southeast Asian Countries in GMS (1) At the hub
The range of Southeast Asia in the GMS is the Indochina Peninsula, which is the peninsula of southeastern Asia, facing the South China Sea in the east of, the Indian Ocean in the west, Siam Bay in the south, extending southward to Malay Peninsula. There are five countries in the Indochina Peninsula, which are the main subjects of our study.
In the historical process, the Indochina Peninsula countries can hardly be called the political or economic powers in the international arena, but were often subjected to the aggression. Except Thailand, almost all have suffered colonial rule. Japan and other countries took turns to attack the area, and the region suffered war owing to the conflict between the communist forces and the democratic camp.
By the attack of the powers, it can be inferred that the Indochina Peninsula must have very important geographical value. Indochina Peninsula is at the junction of the Pacific Ocean and the Indian Ocean, going eastward can
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
2-22
approach the South China Sea and the maritime Southeast Asian countries, going westward can approach the Indian Ocean and South Asian countries. No matter where the starting point is, the Indochina Peninsula is an important springboard, and can be used as an alternative shortcut of “Malacca Strait”, a traditional energy and product transport route. In addition, the Indochina Peninsula, which is adjacent to China, can be called China’s south gate. For Chinese side, it is the channel to go southward and southwestward; for other countries, it’s the important link to China. From a strategic point of view, to strengthen control of this area could contain China’s outward development. The Indochina Peninsula is located in the important junction between sea and land areas, which is in line with the theory of Rimland proposed by Spykman, meaning the rimland was struggled for by land and sea countries owing to important strategic position.