KEBIJAKAN EKONOMI POLITIK CINA DI KAWASAN MELALUI CHIANG MAI INITIATIVE MULTILATERALIZATION (CMIM) DAN CINA-ASEAN BILATERAL SWAP AGREEMENTS

The region�s economies were confronted with serious problems during the Asian Financial crisis 1997/1998 and the impact of global crisis 2008/2009, these phenomena depict the high susceptibility of the countries in the region to the financial instability. The high dependence of one country�s financial and monetary relations with the other broadens the importance of the regional financial safety nets. The ASEAN+3 countries, including China, Japan, and then South Korea agreed to establish the Chiang Mai Initiativein 2000 and its multilateralization in 2009. CMIM is functioned as the regional mechanism with liquidity provision and macroeconomic surveillance feature for the member countries� economies. CMIM liquidity is based on the country�s contribution, and put China and Japan as the biggest contributor to the regime. However, since its establishment the CMIM�s liquidity has never been activated, as the member country preferred the other mechanism outside the region in times of crisis, as showed during 2008/2009 global crisis. This emphasizes the current challenges faced as CMIM liquidity perceived insufficient to meet the member countries� needs as well as IMF�s high involvement in each of CMIM swap disbursement. Hence, this research examines the significance of China�s involvement in the regime as the largest contributor, which will answer how China maintain its engagement and its substantial commitment to strengthen the CMIM, more importantly, China�s Bilateral Swap Agreements in the region have also been perceived could contest the CMIM effectiveness, as China�s BSAs which actively pursued in the region has similar use to the CMIM liquidity objective