Asia should be now considering its life after China's WTO entry. Some are concerned that China would become a major deflationary force in Asia. Others are worried that China would inflict significant damages in Asia's growth by pulling foreign investment away from the rest of Asia and by intensifying Asia's production hollow-out process to the Mainland.
While the first concern is valid, as entry into the WTO will help consolidate China's competitive power, the second fear is flawed. Asia has not lost and will not lose foreign investment to China. Rather, China's improving economic well being will benefit Asia's exports in the long-term and act as an external force to push Asia's economic restructuring. There...
