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China-ASEAN (the Association of South-East Asian Nations) economic and trade ties have hit the fast lane since the Framework Agreement on China-ASEAN Comprehensive Economic Cooperation was signed last November, with a proposed free trade area involving 1.7 billion people, products worth almost US$2,000 billion and trade totaling US$1,200 billion.
Trade Volume Between China, ASEAN on the Rise
The trade volume between China and the members of the Association of Southeast Asian Nations (ASEAN) has been growing rapidly.
Figures from Chinese customs show in the first 10 months this year, China-ASEAN trade generated 43.46 billion US dollars, up 28.3 percent on a year-on-year basis. China's exports to ASEAN grew 27.6 percent to US$18.82 billion, while its imports from ASEAN climbed 28.9 percent to US$24.64 billion.
Surveys released by China's southwestern Yunnan province, which borders ASEAN countries, show that trade volume between China and ASEAN has since 1995 risen by an average of over 15 percent annually.
In 2001, ASEAN's trade with the world's other major economic powers slumped owing to the impact of the "September 11" terror attack on the United States and the ensuing global economic slowdown. But ASEAN and China still registered as much as US$41.615 billion in trade volume in 2001, a rise of 5.3 percent from the previous year.
ASEAN is now the fifth largest trade partner for China, following Japan, the United States, the European Union and the Republic of Korea (ROK). At the same time, China has become ASEAN's sixth major trade partner.
In addition, the bilateral trade structure has been gradually optimized, with new, high-tech products having become increasingly popular in trade between China and ASEAN.
In 2001, China earned US$4.7 billion through exporting high-tech products to the ASEAN, whereas ASEAN earned US$797 million by selling high and new technology products to China.
There is still a great potential to further expand trade and investment between China and ASEAN, according to Chinese insiders and economists.
Over the next three years, China-ASEAN trade is expected to grow at an annual rate of 10 percent and reach US$63 billion in 2005.
Brighter Prospect for Sino-ASEAN FTA
President of the ASEAN Chambers of Commerce and Industry Pyone Maung Maung said China's rapid economic development and its entry into the World Trade Organization made it a huge potential market for ASEAN products.
Chairman of the Singapore Chamber of Commerce and Industry in China Ngoh Keh Chang said that during the process of setting up the Free Trade Area, if Chinese and ASEAN companies could successfully restructure their production and trade, they would build up their international competitiveness.
Both Chinese and ASEAN business communities had realized the bright prospects for the Free Trade Area (FTA), said Chen Chunlin from the Yunnan Corporation For International Techno-Economic Cooperation.
The cooperation among governments, businesses and chambers of commerce had become the major driving force of China-ASEAN economic and trade relations, said Vice President Wan Jifei of the China Council for the Promotion of International Trade.
The China-ASEAN high-level talks, business council, joint committee of cooperation, economic and trade joint committee and science and technology joint committee constitute the five major dialogue mechanisms of cooperation between China and ASEAN. With the establishment of China-ASEAN business networks, companies in the region can better exchange commercial information.
Enterprises Expected to Play Important Role in Future
President of the China Council forthe Promotion of International Trade (CCPIT) Yu Xiaosong proposed here on Tuesday that certain commodities be traded in accordance with the conditions stipulated by the future China-ASEAN free trade area. He added that the Chinese government would welcome suggestions from enterprises in this regard.
Yu told Xinhua at the 2nd China-ASEAN Business Council Meeting and Business Forum that it is already possible to trade certain commodities between China and ASEAN nations according to the conditions of the free trade area framework agreement.
As the principal components of the market and also the direct beneficiaries, enterprises are more familiar with the market and the Chinese government is thus expecting more suggestions from them, Yu said.
Ngoh Keh Chang, chairman of the Singapore Chamber of Commerce and Industry in China, said the free trade area could facilitate commodity trade and inter-enterprise cooperation as well, which could provide "direct benefits" to enterprises and individuals.
"Enterprises should be more active in promoting the building ofthe free trade area through various channels." he said.
In this way, enterprises from both sides could take full advantage of the channels provided by the commercial chambers and business forums to enhance regional cooperation with their counterparts, Ngoh said. He added that through exchanges and cooperation, companies from ASEAN countries and China could restructure themselves and their products to jointly cope with international competition and to contribute to the sound development of the free trade area.
Wan Jifei, vice president of the CCPIT, said that the CCPIT is willing to make joint efforts with ASEAN commercial chambers to generate more business opportunities for enterprises from both sides.
Located on the borders of several ASEAN countries, Yunnan Province is expected to be a hot spot for investment from China and ASEAN nations.
Xu Rongkai, governor of the province, said the establishment ofthe free trade area and the development of the Mekong River subregion will provide great business potential for enterprises from China and ASEAN nations.
Established in 2001, the China-ASEAN Business Council has become a major dialogue mechanism between China and the ASEAN.
(Edited by china.org.cn December 18, 2002)
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