In Asia, politics stands in the way of economic integration

Asians are now awake to the fear of armed conflict. A recent survey of 11 Asian countries by the Pew Research Centre found that more than half of those polled expressed concerns that tensions over rocks and islets claimed by China could spill over. In countries with conflicting claims against China - Japan, the Philippines and Vietnam - 80 or even 90 per cent share such fears.

Steps must be taken to de-escalate tensions or else the stability and growth of the region will be affected. The high-level strategic discussion between the US and China, hosted in Beijing, was one notable effort. Another recent and positive step was taken by China, to move the oil rig that it had earlier controversially placed in disputed seas.

Other measures could come from emphasising the economic interdependence between the Association of Southeast Asian Nations, Japan and China. One key area would be in the creation of an Asean Economic Community by 2015. It is estimated that about 80 per cent of the planned steps have been achieved as of last August, but the remaining tasks are probably the most difficult to accomplish.

Economic integration is neither going to be complete nor on time. Privately, Asean officials are now talking about 2015 being a milestone, and not a deadline, and have begun to identify an agenda beyond that date. What is even clearer is that integration efforts depend not only on the 10 member states and the relatively small Asean secretariat, but also on China and Japan.