Without any doubt, the past decade was a crucial period for China's reform and opening up. China was confronted with two most severe external economic challenges during this period. One was the Asian financial crisis from 1997-98. The other is the current world financial crisis.

The crises have not only changed China's relations with the rest of Asia, but also greatly boosted the integration of this region. China now has a much bigger role to play in fighting the global economic woes and enhancing regional cooperation.

In the 1990s, as China's fast-paced economic growth and opening up continued, the country was forced to face the challenge brought by the unexpected Asian financial crisis, which also constituted a great shock to Hong Kong's economy, shortly after the region was handed over to China.