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Business / Economy

Agreements rise between China, ASEAN nations

(Xinhua) Updated: 2012-09-24 16:23

NANNING -- Although China has found it increasingly difficult to meet its annual trade growth targets, its exports and imports with the 10-member Association of Southeast Asian Nations?may give it a chance to improve its performance.

An exhibition hall at the ongoing ninth China-ASEAN Expo, with floor space equivalent to several football fields, is filled with crowds of people busy bargaining for deals. Goods on display range from construction equipment and furniture to jewelry and handicrafts.

The bustling fair reflects recent customs data showing a 7.7-percent increase in China-ASEAN trade in the first eight months of the year. Although it was lower than the annual rate of more than 10 percent seen in past years, it outpaced China's combined foreign trade growth of 6.2 percent in the same period and stood in stark contrast with China's contracting trade with the EU and the US.

The robust China-ASEAN trade figures is particularly soothing at a time when the world is grappling with a longer-than-expected economic downturn. Upbeat trade, more importantly, brings consistent income and jobs for people living in ASEAN countries and China.

The robust and consistent trade growth demonstrates that China and ASEAN not only share long borders, but also enjoy common benefits that can help them rise above disputes.

The booming trade can be attributed to the two-year-old China-ASEAN Free Trade Area, the world's largest FTA for developing countries. By the end of August, China had reduced tariffs for ASEAN imports by 50 billion yuan through their free trade agreement.

In the past decade, bilateral trade grew at an annual rate of 20 percent to $362.9 billion. China has kept its place as ASEAN's largest trading partner for three years and ASEAN is China's third-largest trading partner after the EU and US.

An expansion of the China-ASEAN FTA is in the cards. Hong Kong applied for participation in the FTA in 2011 and preparations for negotiations are under way. ASEAN has a more aggressive plan, integrating its five bilateral FTA partners -- India, Japan, the Republic of Korea, Australia and New Zealand -- with China and ASEAN to form the world's largest FTA.

If carried out smoothly, regional trade is expected to expand significantly and will serve as a key engine to shore up regional economic growth and protect it from outside turmoil.

The people of China and ASEAN member countries have more to share than economic benefits. As neighbors, they have centuries' worth of exchanges in culture and arts. People-to-people contact has, in fact, laid the foundation for China-ASEAN relations.

Undeniably, disputes remain between China and ASEAN regarding the South China Sea. However, maintaining peace and stability in the sea remains the common responsibility of all parties concerned.

Disputes will never replace cooperation and mutual trust. China has always committed itself to narrowing differences through dialogue and consultations, as it knows friendly relations are always valuable.

China and ASEAN should seize this historic chance to set aside their differences and expand common prosperity, hand-in-hand.

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