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  • 7/10/2025
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China's widespread inequality means that observers can see it as a both a wealthy and a poor country. So in this video, we'll explain this dichotomy, how China's economic structure exacerbates the issue and why the Chinese population loses out.

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0:00 Intro
1:10 China's Enormity
2:10 China's Economic Inequality
4:40 China's Aggregate Imbalances
7:15 China's Capital Controls
Transcript
00:00While the European Union debates the accession of Ukraine and other countries,
00:04on the other side of the world, the Association of Southeastern Asian Nations, or ASEAN,
00:08is quietly expanding, with its 11th member, Timor-Leste, set to join later this year,
00:14and other nearby countries being floated for membership too.
00:18So in this video, we're going to explain what ASEAN is, the role it plays on the world stage,
00:23why it's expanding, and the challenges that it faces going forwards.
00:30If you're interested in the political alliances and groupings which shape our world,
00:44then you might enjoy our poster, Every Alliance Explained.
00:48It shows, in slightly confusing detail, all of the world's major alliances,
00:53and how different countries link together.
00:55Check out the poster by clicking the link in the description.
00:58So, what is ASEAN?
01:00ASEAN is a 10, soon to be 11, member regional bloc,
01:04comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
01:12It aims to accelerate economic growth, drive cooperation, and promote peace and security in Southeast Asia.
01:19ASEAN is big.
01:20It covers nearly 4.5 million kilometers squared, has a total population of nearly 680 million people,
01:27and a combined GDP of 3.8 trillion dollars.
01:32ASEAN was founded in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand,
01:37which were all concerned about the spread of communism.
01:41However, membership surged through the 1990s, as relative peace came to Southeast Asia.
01:45Now, it's tempting to liken ASEAN to the European Union, but the two bodies are pretty different,
01:52as the EU, a supranational entity, is far more integrated than ASEAN, which is an intergovernmental organization.
01:59ASEAN is also a lot more economically, politically, and culturally diverse.
02:04It has, for example, Singapore, among the world's wealthiest and most developed countries,
02:09and Myanmar, among the world's poorest.
02:12Politically speaking, ASEAN's membership ranged from flawed democracies to absolute monarchies and one-party states.
02:19Nevertheless, over the years, the bloc has come closer together and scored some significant achievements.
02:25In 1995, its members signed a treaty to create a nuclear weapons-free zone.
02:30In the aftermath of the 1997 Asian financial crisis, it launched a regional currency swap arrangement,
02:35and it adopted the ASEAN Charter in 2007, which established the group's legal and institutional framework.
02:42Intra-ASEAN tariffs have been virtually eliminated,
02:45and ASEAN also spearheaded the creation of the massive RCEP Free Trade Agreement,
02:50comprising ASEAN's 10 members, plus China, South Korea, Japan, Australia, and New Zealand.
02:57So, where does ASEAN struggle, and what challenges does it face?
03:01Well, in perhaps the two most significant threats to the region's peace and security,
03:06the Myanmar civil war and the South China Sea dispute,
03:08ASEAN remains divided, and has struggled to chart a way through.
03:13ASEAN member Myanmar spiralled into civil war in 2021,
03:16after the military overthrew the elected government.
03:19Later that year, ASEAN members adopted the Five-Point Consensus,
03:23which called for an immediate ceasefire and constructive dialogue among all parties
03:27to seek a peaceful solution.
03:29This looks great on paper, but years later the war is still raging,
03:34and the implementation of the Five-Point Consensus has clearly been a failure.
03:39ASEAN hasn't been able to be more assertive during the crisis,
03:42in part because one of the bloc's cornerstones is the principle of non-interference,
03:46and because it's been divided on the issue.
03:49Indonesia, Malaysia, and Singapore, for example,
03:51have taken a much harder line on the military regime,
03:54while others like Cambodia, Laos, and Thailand have advocated for a softer approach.
04:00ASEAN faces a major challenge later this year in deciding on a response to the elections planned by the regime
04:05that critics say is a sham aimed at legitimising continued military rule.
04:11Meanwhile, there are divisions over the handling of the dispute in the South China Sea,
04:14where China's expansive maritime claims overlap with those of four ASEAN members.
04:20There have been more than two decades of as-yet inconclusive negotiations between ASEAN and China
04:25over a South China Sea code of conduct,
04:28aimed at managing disputes and lessening tensions.
04:31Some ASEAN members, like the Philippines and Vietnam,
04:34which have the most intense disputed claims with China,
04:37want a legally enforceable code of conduct,
04:40while other less involved and more China-aligned countries like Cambodia and Laos are more hesitant.
04:46But all of that aside, let's take a look at ASEAN's enlargement.
04:49More than a quarter of a century after it last expanded,
04:52Timor-Leste will become ASEAN's 11th member in October 2025,
04:56meaning the bloc will finally include every Southeast Asian nation.
05:01For context, Timor-Leste, which shares the island of Timor with Indonesia,
05:05is a former Portuguese colony of nearly 1.4 million people
05:09that spent the last quarter of the 20th century under a brutal Indonesian occupation,
05:14before eventually winning its independence in 2002.
05:17Timor-Leste's path into ASEAN has been a long one.
05:21It was recognised as an ASEAN observer upon independence in 2002.
05:25In 2011, it applied for full membership.
05:27In 2022, the bloc agreed to its succession in principle,
05:30and earlier this year it agreed to fully admit Timor-Leste
05:33at the 47th ASEAN summit in October.
05:37The long path to accession reflects the fact that Timor-Leste
05:40had to work hard to demonstrate that it could meet the conditions
05:43of membership across its three pillars,
05:46political security, economic and sociocultural.
05:49Much like in EU enlargement debates,
05:51the delay has also been caused by the concerns of various other members
05:55worried about the impact of letting in a comparatively poorer
05:58and less developed country.
06:01In an expression of frustration, Timor-Leste's president said in 2022
06:04that it was easier to enter heaven than ASEAN.
06:09But having overcome the obstacles,
06:11both Timor-Leste and ASEAN can look forward to the benefits of accession.
06:15Despite impressive progress since independence,
06:18Timor-Leste still has a lot that needs improvement.
06:20A significant chunk of its population is below the poverty line,
06:24it lacks economic diversification,
06:26it's heavily reliant on oil revenues,
06:28and it faces a looming budgetary crisis
06:31after decades of unsustainable withdrawals from its sovereign fund.
06:35So accession to ASEAN is a big deal.
06:38It allows Timor-Leste to benefit from ASEAN's free trade agreements,
06:42give it the opportunity to become part of the bloc's integrated value chains,
06:46benefit from its integrated funds,
06:47and enhance its appeal to outside investment.
06:51ASEAN, meanwhile, will be truly region-wide
06:53and gain some much-needed democratic legitimacy,
06:56as Timor-Leste is consistently ranked as the most free and democratic nation
07:00in Southeast Asia.
07:02In fact, Freedom House lists it as the only fully free country in the region.
07:07ASEAN also has the chance to play a more involved role
07:10in Timor-Leste's development going forward,
07:12and benefit from its geostrategic location along maritime trade routes
07:16between Southeast Asia and the Pacific.
07:18Timor-Leste's succession does pose challenges, though.
07:21Not least that adding an 11th member,
07:23and one with strong democratic credentials,
07:26makes the bloc's consensus-driven approach just that little bit harder.
07:30And Timor-Leste's relatively low GDP per capita
07:32heightens ASEAN's so-called developmental divide.
07:35Nevertheless, will Timor-Leste's succession
07:37be the beginning of a new wave of enlargement?
07:40Well, at the ASEAN summit earlier this year,
07:42Indonesia's president said he supported Papua New Guinea's bid to join the bloc,
07:47and Bangladesh has also been canvassing support for joining.
07:50However, there are plenty of hurdles for both,
07:52not least the fact that accession must be approved by all member states,
07:56and the criteria limits membership only to Southeast Asian nations,
08:00which Papua New Guinea and Bangladesh are not,
08:03so some amending would be necessary.
08:05As such, the prospect of further enlargement anytime soon looks slim.
08:09The next issue of our magazine, Too Long, is about to publish,
08:14and this time it's all about the end of the American order.
08:18In that section, we unpack everything from the collapse of the democratic norms in the US
08:22to the decline in American soft power,
08:24and if the US can maintain its dominance in energy and technology.
08:28We also discuss the people who could pick up the reins from the US,
08:32like if China, Europe, or even a new multipolar order could replace America.
08:37This magazine is our longest ever, coming in at 76 pages,
08:42all full of our best journalism as well as thought-through analysis.
08:46That goes beyond the US too,
08:48with more than half of the magazine dedicated to other topics,
08:51from Germany's new focus on military might,
08:54the offshoring of migrants around the world,
08:56how Nigel Farage could become Britain's next prime minister,
08:59or our section where we ask a handful of experts
09:02what's really driving anti-establishment sentiment around the world.
09:05You can pre-order a copy of Too Long from our website right now,
09:09or you can subscribe to make sure you never miss an issue going forward.
09:13And if you do, you'll also get 20% off every copy as long as you're subscribed.
09:19Plus, just this week, if you use code American Order,
09:22you'll get an additional 20% off any subscription,
09:25bringing the price down to as little as £6.40.
09:28So pre-order your copy now to get yourself all of that extra content
09:32and support all the journalism that we do at TLDR every day.

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