Reference News Network, June 30 report: On June 25, the website of Australia's East Asia Forum published an article titled "East Asia Must Deepen Economic Integration to Cope with an Unstable World," authored by Nguyen Minh Quang, former chief economist for the Asian Development Bank's regional economic integration program. The following is a translation of the article:

The tariff shocks from Trump have severely disrupted the East Asian economic landscape, posing increasing challenges for export-oriented economies in the region. Unreasonable tariffs imposed on ASEAN, China, Japan, and South Korea have greatly increased costs and reduced competitiveness. The uncertainty caused by these measures will hinder long-term business investment and threaten employment and economic growth across the entire region.

Trump's protectionism reflects a historical trend in which the United States shifts the costs of its internal adjustments onto trade partners. The U.S. trade deficit is caused by structural imbalances such as low savings and high consumption, which cannot be resolved through short-term interventions. Solving this issue requires major, politically challenging reforms, something Washington has traditionally avoided.

East Asia must deepen economic integration to cope with the rising tide of protectionism globally. However, merely strengthening regional connections is not enough - establishing an East Asian Economic Community (EAEC) is crucial, not only to alleviate current trade chaos but also to actively shape the changing global trade landscape.

The main objective of the East Asian Economic Community is to accelerate economic integration by eliminating trade barriers within the region. Existing frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community have promoted regional trade by reducing tariffs and harmonizing standards, although non-tariff barriers remain a challenge.

The three complementary regional initiatives - the RCEP, the ASEAN Economic Community, and the China-Japan-South Korea Free Trade Agreement - will drive the process of market integration. The China-Japan-South Korea Free Trade Agreement will deepen cooperation among the three countries and serve as an important catalyst for accelerating the market integration process of the East Asian Economic Community. As the world's largest trading bloc, the RCEP strengthens ties between ASEAN, China, Japan, and South Korea, reinforcing regional supply chains. The ASEAN Economic Community not only benefits the economic cohesion within ASEAN but also helps narrow the development gap within ASEAN. These frameworks will generate synergistic effects, enhancing and advancing the economic integration of the East Asian Economic Community.

However, East Asia still faces ongoing geopolitical and economic challenges. Although existing trade frameworks provide valuable platforms for cooperation, East Asian countries must now take decisive next steps toward the next stage of regional cooperation and integration.

The establishment of the East Asian Economic Community represents a key phase in deepening economic integration and strengthening regional stability. East Asian countries should transcend historical differences and reaffirm their commitment to regional solidarity. Taking bold and decisive actions, the risks have never been so high, and the opportunities have never been so great. (Translation/ Wang Qun)

Original: https://www.toutiao.com/article/7521654446611268142/

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