Abstract
In the seventeenth and eighteenth centuries, prior to the Western impact, China was a major commercial power in Southeast Asia. In recent decades, China has begun to play a role in business networks in the context of growing Asian economic integration. The emergence of a sizeable middle class in the region, including China, provides cross-border commercial opportunities. There has been a division of labour in production in the region, that is, vertical specialization. China also possesses a quantity of rare earth metals, offering potential bargaining power. In addition, however, Chinese territorial claims in the country's quest for natural resources have incited apprehension among neighbours. The Chinese leaders have sought to mitigate conflict, at the same time protecting their core interests in Asian regional arenas like APEC and ASEAN related bodies. Simultaneously, China's naval outreach is designed to prevent interdiction of the shipping lanes through which the country's trade passes. As China's economic influence in the region grows, it could impact on Asian management systems.