A new stage of Cooperation

Full Steam Ahead

While celebrating 40 fruitful years of teamwork, ASEAN is pondering
During the past 16 years, both China and ASEAN as a whole have benefited from this relationship. The volume of China-ASEAN trade has increased more than 20 times during this period (see the graph). The two now are trying to fashion a free trade zone. They also have been working on additional joint development and infrastructure projects.

The five original founding members of ASEAN were Indonesia, Malaysia, the Philippines, Singapore and Thailand. They later were joined by Brunei, Cambodia, Laos, Myanmar and Viet Nam. The organization also has one candidate state, Timor-Leste; Papua New Guinea has been an observer since 1976. The framework of "10+3" is a cooperative forum comprised of the 10 ASEAN members along with three East Asian countries of China, Japan and South Korea; and "10+1" is comprised of ASEAN and one of the three East Asian countries.

Trade boom

China's economic cooperation with ASEAN has grown tremendously over the last few years. ASEAN is now China's fifth largest trading partner, and its biggest trade partner among developing countries.

ASEAN has been an important investor in China, with average annual investments of about $3 billion, most of which have been in the manufacturing and service industries. In recent years, Chinese enterprises have begun investing in ASEAN countries. In 2006, they pumped $200 million in ASEAN nations, mainly in the manufacturing, agriculture, trade and real estate sectors.

ASEAN is also China's main market for construction contracts. In 2006, China inked deals with ASEAN that totaled $43.85 billion. Of that amount, China signed contracts valued at $8.84 million with Singapore. The China-ASEAN Expo (CAEXPO), which since 1994 has been held annually in Nanning, capital of south China's Guangxi Zhuang Autonomous Region, serves as an important platform for economic and trade cooperation between China and ASEAN.

China and ASEAN's member countries are planning to enhance their regional cooperation in 10 key fields, including agriculture, human resource development, investments, exploration of the Greater Mekong Region, transportation, energy, culture, tourism, public sanitation, and information technology and telecommunications. They also work together in the areas of legal affairs, communication among youths and non-traditional security.

Besides, the two sides have set up the China-ASEAN Development Foundation, a group that will support China-ASEAN regional cooperation in various areas.

Let prosperity reign

China's ties to ASEAN also serve as a strategic political partnership that fosters regional peace and prosperity through a dialogue system consisting of summit meetings, nine ministerial meetings and five working-level discussion sessions.

Political trust between China and ASEAN has been strengthened through this cooperation, especially in the face of regional natural disasters and diseases, such as the SARS and bird flu epidemics.

When ASEAN member countries Indonesia and Sri Lanka were hit by the tragic tsunami in December 2004, China offered aid in the form of money, material and medical services.

China's collaboration with ASEAN received a boost in January when Premier Wen Jiabao signed a declaration on East Asian energy security at the Second East Asia Summit in Cebu, the Philippines.

"Dialogue and policy coordination should be strengthened between producers and consumers to guarantee a stable energy market in the region," Wen said in a speech at the meeting. He also noted that China and ASEAN should strengthen their mutual political trust, bring China-ASEAN economic relations and trade to a new level and work together in non-traditional security fields.

Wen put forward three proposals at the summit: that East Asian countries should work together to enhance regional development and prosperity; that their cooperation should lead to harmony among all countries in the region; and that the diversified development of social systems and cultures should be respected.

Wen also said that China would favorably consider setting up economic and trade zones in ASEAN countries that have sound infrastructures and complete industrial chains. He also mentioned that China made good on its pledge to deliver $1 million to the ASEAN Development Fund. The money will be used to train 8,000 professionals in various fields within five years and to run a number of agro-technology training programs and workshops in ASEAN countries this year.

China also would invite 300 young people from ASEAN countries to visit the country and set up a China-ASEAN Youth Campus in Guangxi, China, Wen said. China also would host the third China-ASEAN high-level seminar on media cooperation this year to promote China-ASEAN media exchanges, he said.

With China-ASEAN trade and economic cooperation leading the way, China is ready to deepen its cooperation in all areas, particularly social, cultural, political and security cooperation.

"I hope this will bring the China-ASEAN win-win cooperation and common development to a higher level," Wen said at the summit.