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China to strengthen ties with ASEAN

0 CommentsPrint E-mail China Daily, October 20, 2010
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A delegate to the seventh China-ASEAN Expo poses for a photo with an usher dressed in ethnic costume after attending the opening of the event on Tuesday in Nanning, capital of the Guangxi Zhuang autonomous region.[Xinhua]

A delegate to the seventh China-ASEAN Expo poses for a photo with an usher dressed in ethnic costume after attending the opening of the event on Tuesday in Nanning, capital of the Guangxi Zhuang autonomous region.[Xinhua]



China's top political adviser pledged on Tuesday to strengthen economic and trade ties with the Association of Southeast Asian Nations (ASEAN), stressing wider and deeper cooperation in areas including infrastructure, construction, and livelihood projects.

The strategic partnership between China and ASEAN serves the fundamental interests of all involved nations, while the ties are deepening when the adjustment of the world's political and economic patterns are accelerating, Jia Qinglin, chairman of the Chinese People's Political Consultative Conference National Committee, said at the opening ceremony of the seventh China-ASEAN Business & Investment Summit in the Guangxi Zhuang autonomous region's capital, Nanning.

Bilateral trade between China and ASEAN surged 44 percent in the first nine months of the year to $211.3 billion, buoyed by the completion of China-ASEAN Free Trade Area (CAFTA) that came into force in January. China's trade deficit with the ASEAN nations surpassed $12 billion as the country increased imports of resources.

"(China's trade deficit) is good in a sense that Chinese firms have found cooperative companies in ASEAN countries which can provide competitive products to China. It indicates that a synergy is growing between China and ASEAN that will help all the members grow together," said Subash Bose Pillai, director of the ASEAN Economic Community Department.

CAFTA is the world's largest free trade zone, covering a population of 1.9 billion. "China and the region complement each other in many fields rather than in direct competition," said Richard Tan L.Ch., executive chairman of the Indonesian Chinese Entrepreneur Association.

In the first half of 2010, China's non-financial direct investment in ASEAN countries was $1.2 billion, mostly driven by investment in natural resource exploration and development as well as infrastructure construction by cash-rich State-owned enterprises.

CNOOC Ltd, China's top offshore oil producer, said on Tuesday that investment in Indonesia by its Southeast Asia division will reach $5.6 billion by the end of next year.

"Our investment in the region will gradually increase year by year," said Duan Chenggang from CNOOC Southeast Asia, adding that its annual investment was about $600 million since 2008.

"China has the capital and advanced manufacturing capabilities to support cooperation between Indonesia and China in the energy sector," said Zhang Guobao, vice-minister of the National Development and Reform Commission.

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