Free trade agreements (FTAs) have been proliferating in Asia since the late '90s and show no sign of abating. The ASEAN +3 model should ideally serve as the starting point because of existing linkages in the real and monetary sectors. Nevertheless, what have emerged are six ASEAN +1 initiatives....

China’s intra-industry trade (IIT) with East Asia was minimal during the early years of opening up from 1978 to 1993 but increased relative to inter-industry trade in the post-1993 years. Bilateral intra-industry trade (BIIT) with Japan and Korea was sustained in capital-intensive heavy...