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China has a myriad and diverse range of neighbors who are significant in their own right but are also of global importance. Asia accounts for 25% of global GDP.

This book evaluates the potential for both cooperation and conflict within the Asian region. Border problems and historical problems are still plaguing countries in the region and are affecting the relations between them. China and India have not yet resolved their land frontier issues. Furthermore, China has maritime disputes with Japan, South Korea, Vietnam, and the Philippines. The historical issues among China, Japan, and South Korea make the cooperation between them lack a basis of political mutual trust. Therefore, although there are close trade contacts among these countries, China, Japan, and South Korea have not reached any FTA. In South Asia, because of long-term India-Pakistan conflicts, South Asia's Association for Regional Cooperation (SAARC) has been useless and is unable to effectively promote regional economic cooperation, which is a factor in pushing India to develop towards the East. These unstable factors have not only hindered the formation of long-term institutional arrangements on economic and trade cooperation within the region, but have also caused various unexpected events to disrupt existing cooperation.

Throughout this book, economic data and analysis is provided which gives an insight into the trade and financial links that bind this region together. Written by experts in China it gives a fascinating view of China's approach to its neighbors. China is assuming a more important role on the world stage but it is important to not forget the key role it plays in its own neighborhood.

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