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By Yang Jiang

Utilizing first-hand interview information, Yang Jiang unearths the most important tendencies of China's exchange and fiscal politics after its WTO accession. specifically, she highlights the impression of competing household pursuits, executive organizations and various principles on China's overseas financial coverage.

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Chinese scholars held that the political motivation was also demonstrated by Beijing’s signing strategic agreements around that time to allay ASEAN’s worries of a security threat from the north. 7 The CAFTA initiative was also a landmark in China’s diplomacy in taking the leading position in driving the progress of Asian regionalism by forging institutional arrangements, rather than the hitherto ‘Asianstyle’ informal forums, and making economic concessions first. It is widely held by observers that the proposal was Beijing’s diplomatic coup against Tokyo, which had been seeking economic cooperation partnership with ASEAN.

54 Moreover, to secure supply of energy and resources has been a prominent feature of China’s latest FTA policies, such as those with Australia, Chile, the Gulf Cooperation Council, the South African Customs Union and the Shanghai Cooperation Organisation. However, even if those strategic objectives all exist, does the Chinese government have a free hand in pursuing them through regional economic cooperation? 55 Still, their analysis treats China as a unitary actor, without addressing how the government dealt with possible domestic resistance.

However, during the Asian financial crisis, the enthusiasm of Chinese scholars for Asia Pacific cooperation dimmed as East Asian countries became more sceptical about the US and increased their enthusiasm for an East Asian Community. According to a former Chinese diplomat, as long as the US is involved, China cannot entrust APEC with parts of its 22 China’s Policymaking for Regional Economic Cooperation political or economic autonomy or let the mechanism become institutionalised (interview in Beijing, May 2006).

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