Power Transition and the Economic Order: How Much Change?

Abstract

The chapter focuses on trade, which is a dynamic aspect of economic relations in international society. It puts into question the existence of geopolitical and geo-economic blocks in the Asia–Pacific area and critically examines the thesis that changes in trade relations reflect a geopolitical transition in the Asia–Pacific area. First, it presents the mainstream power transition theories and their critics in the context of the rise of China and Asia–Pacific trade. Second, it develops the argument of power transition in the contexts of international institutions. Third, it presents the role of ASEAN countries in the development of the WTO’s trade rules. Fourth, it examines the use of trade rules in the context of East–West trade disputes in the WTO. Finally, it analyzes the role of minor powers in the possible power transition concerning trade arrangements in the Asia–Pacific area.