The formation of Greater China, comprising Taiwan, Hong Kong and China has led to and by the increased intra-regional trade and investment. This market-driven economic group is in contrast to the EEC where the economic integration is very institutionalised. It is also in contrast to the ASEAN where the constituent states are more similar to each other. The Greater China constituent states are complementary in resources with Taiwan and Hong Kong being among the NIEs and are having advanced financial systems and extensive capital, and China being a labour resource rich developing economy is adopting policies to reform its economic system.
Australia's increasing focus on Asia, especially on Greater China is justified by the regions' high growth rates in the early 1990s. Not only Australia is geographically close to these states, there is also a trade creating effect from the formation of Greater China. Australia's trade policy should continue to be liberalised with minor adjustments to be made in the future to meet APEC's goal. The membership of APEC of the Greater China constituent states means that it will remain to be an outward looking economic group.