News Analysis: China-ASEAN Summit Eyes Free Trade

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Last updated at: (Beijing Time) Wednesday, October 02, 2002

News Analysis: China-ASEAN Summit Eyes Free Trade

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China expects the upcoming sixth summit between leaders of China and the Association of Southeast Asian Nations (ASEAN) to achieve significant results in negotiations for a China-ASEAN free trade area, co-operation in developing the Mekong River Basin and collaboration in nontraditional security fields.

Premier Zhu Rongji is scheduled to attend this China-ASEAN summit in Phnom Penh, in Cambodia, in November.

The two sides are expected to sign a framework agreement on comprehensive economic co-operation during the summit, Vice-Foreign Minister Wang Yi told China Daily in an interview.

"The agreement will not only outline areas for China-ASEAN economic co-operation but also officially initiate processes for the establishment of a China-ASEAN free trade area by prescribing guiding principles, a framework and a timetable,'' Wang said.

Leaders of the two sides reached consensus on setting up a free trade area to cut tariffs and remove non-tariff barriers between China and ASEAN last year at their fifth summit in Brunei.

The free trade area will help create a free market encompassing 1.7 billion people, the largest market of its kind in the world.

The trade volume between China and ASEAN reached US$41.6 billion last year, making China the sixth largest trading partner of ASEAN and ASEAN the fifth largest of China. Two-way trade volume hit US$23.6 billion in the first half of this year, an 18.7 per cent increase over trade in the same period last year.

It is estimated that the establishment of a free trade area will bring a surge of nearly 50 per cent in exports from both sides.

"It will set a model for solidarity and mutual assistance among developing countries and for South-South co-operation, and will enhance mutual understanding and trust, which is of real significance to peace and development in the region,'' Wang said.

He said China-ASEAN co-operation has entered a more comprehensive and mature new stage and has become the most vibrant area of regional co-operation.

The Chinese Premier is expected to introduce a comprehensive plan for China's participation in the development of the Mekong River Basin when he attends the first Greater Mekong Sub-region (GMS) Summit, to be held before the China-ASEAN summit.

China will grant preferential tariff treatment to three of the least developed countries of ASEAN -- Laos, Cambodia and Myanmar -- and support ASEAN's efforts to narrow the development gap among its members.

China will offer financial assistance in building one-third of the Laos section of the Kunming-Bangkok highway. China also remains supportive of the construction of the Pan-Asia railway (Kunming-Singapore railway).

Wang said China will offer the three non-WTO members of ASEAN -- Viet Nam, Laos and Cambodia -- the most favoured nation status enjoyed by WTO members, within the framework of China-ASEAN free trade area.

"The convening of the GMS summit and China's declaration of its willingness to work with ASEAN to develop the Mekong River Basin will, to some extent, serve as a symbol for China-ASEAN co-operation in this field,'' Wang said.

The vice-foreign minister said China also hopes to explore and expand fresh co-operation channels with ASEAN and gradually open up dialogue and co-operation in nontraditional security areas including counter-terrorism.

"China supports ASEAN's counter-terrorism efforts and is ready to work with ASEAN in fighting terrorism in this region,'' Wang said.

"We should also sharpen alertness towards all nontraditional security issues including terrorism, drug trafficking, smuggling, illegal immigration, pirates, environmental degradation and AIDS,'' he added.

Wang said all these are challenges facing every country in the world and that countries must work together to deal with them.

"We hope China's relations with ASEAN will see further comprehensive development as a result of this summit,'' Wang said.

"China hopes to remain good friends, good neighbours and good partners with ASEAN forever,'' he said.

"A united, stable and prosperous ASEAN serves China's interests,'' he said, adding that it is an established policy of the Chinese Government and an integral part of China's foreign policy to strengthen and deepen this partnership, with its emphasis on good-neighbourliness and mutual trust.

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