- Bilateral Free Trade Agreement,
- Counter-hedging Strategy,
- Sovereign Disputes in South China Sea,
After the leadership transition in CCP's 16th Congress, the policy toward Southeast Asia of PRC will exhibit more continuity than disruption. Beijing desires to broaden and intensify existing modes of diplomatic, economic, security or socio-cultural interaction between China and the countries of Southeast Asia. China perceives that Southeast Asian countries has adopted a from of "hedging" or "fencestraddling" behavior of combining economic engagement with strategic hesitation when it comes to dealing with China. Southeast Asian countries hope to optimize economic opportunities and benefits with China, but also help the United States retain a military presence in the region and engage Japan in non-traditional security roles. China would want to turn Southeast Asia's desire to hedge on China into a longing for comprehensive cooperation instead. Beijing is prepared to adopt a strategy of "counter-hedging", including weakening the US-Japan alliance and bilateral alliances between the US and Southeast Asian countries, in reaching out to Southeast Asiancountries, to make them come to terms with China's leadership in Asia.
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