The China ASEAN Pact was formally launched on January 1. It follows years of relationship building in the region by the Chinese, but it is just the beginning of a new era of future cooperation. However, China is such a huge economy compared to other countries in the pact, it will be interesting to see how the “win-win” approach China has taken will play out.
For companies doing business in China or Southeast Asia, this pact could provide both new opportunities or new challenges depending on how the business model and regional relationships are structured. Companies just now considering expansion into China or Southeast Asia may want to reassess their entrance strategy into the region to take advantage of potential, new benefits or mitigate risks. Taking the longer view might be the best strategy.