China-ASEAN FTA: Winners And Losers

BMI View: The implementation of a China-ASEAN free trade deal on January 1 2010 has created the world's third-largest trade zone, and, perhaps more importantly in the context of subdued developed world consumption, will boost Chinese demand for South East Asian exports. In the short term, the deal will help China fulfil its appetite for natural resources, facilitating the recovery cycle in South East Asia. Longer term, we expect to see a greater penetration of Chinese exports to ASEAN economies, in line with the general theme of global rebalancing.

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