This photo taken on Sept 11, 2021 shows the "Belt and Road" International Pavilion at the 18th China-ASEAN Expo in Nanning, capital of south China's Guangxi Zhuang autonomous region. (LU BOAN / XINHUA)
Relations between China and the ASEAN are set to reach new heights, benefiting the region and beyond, with the announcement of a new partnership agreement, analysts said.
During a special summit commemorating the 30th anniversary of ASEAN-China dialogue relations on Nov 22, Chinese President Xi Jinping announced that the two sides will establish a comprehensive strategic partnership, representing a new milestone in bilateral relations.
During a special summit commemorating the 30th anniversary of ASEAN-China dialogue relations on Nov 22, Chinese President Xi Jinping announced that the two sides will establish a comprehensive strategic partnership, representing a new milestone in bilateral relations
Noting that the strategic agreement between China and the Association of Southeast Asian Nations, or ASEAN, goes beyond investments and trade, Siah Hwee Ang, a professor of international business and strategy at the Victoria University of Wellington, said it is a necessary and a good move for the two sides to upgrade their ties.
China and ASEAN will grow faster due to their mutual support, Ang said, adding that their cooperation will benefit the wider global economy.
“China is trying to maintain very strong ties… with ASEAN,” said Ang, noting that the 10-member regional bloc is likely to make a significant contribution to China’s growth, at least in the next ten years or so, due to slower economic growth in the rest of the world.
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Suthiphand Chirathivat, executive director of the ASEAN Studies Center at Chulalongkorn University in Bangkok, said the upgraded ties will further deepen integration between China and ASEAN beyond trade liberalization and facilitation, to encompass other areas including digitalization, green economy, human resources development and connectivity.
Noting that Xi called for expanded cooperation in new areas like digital economy, Suthiphand, who is also executive director of Thai conglomerate Central Group, said he sees opportunities for his group, which has been working with Chinese internet giant JD.com in e-commerce and fintech services over the past few years.
The establishment of China-ASEAN comprehensive strategic partnership is good for the region, and will help ASEAN member states like the Philippines supply tropical food products to China, said Pacita Juan, trustee of the Philippine Women’s Economic Network, or PhilWEN, a Manila-based consortium advocating the economic empowerment of women.
New opportunities can be explored in trade of bananas and other fruits, and especially organic products, she said.
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Rajiv Biswas, Asia Pacific chief economist at global consultancy IHS Markit, noted that “President Xi highlighted the strong economic partnership that has already been built between China and ASEAN”.
“One important pathway to strengthening economic cooperation has been through the establishment of free trade areas,” said Biswas. “As part of China's bilateral trade initiatives with ASEAN, China will buy $150 billion of agricultural products from ASEAN over the next five years.”
In his speech, Xi said China and the ASEAN need to fully harness the role of the Regional Comprehensive Economic Partnership, or RCEP, begin work to upgrade the China-ASEAN Free Trade Area at an early date, and enhance the level of trade and investment liberalization and facilitation.
The RCEP is a free trade pact signed by ASEAN and major five trading partners including China. It will enter into force on Jan 1, 2022.
Xi also announced an additional $1.5 billion of development assistance for ASEAN countries over the next three years to support their economic recovery, as well as an additional 150 million doses of COVID-19 vaccines to them to help increase their vaccination rates.
“The wide range of new initiatives proposed by China to strengthen bilateral economic ties with ASEAN will accelerate bilateral trade and investment flows,” said Biswas, adding that China's substantial new development assistance initiatives for the ASEAN nations will also help to support economic recovery from the global pandemic.
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Dicky Budiman, epidemiologist at Griffith University in Australia and a former secretary of supervisory bodies at Indonesia's National Health Insurance, said collaboration between ASEAN and regional partners, including China, is important for establishing health security both on a regional and global level.
“ASEAN (member states) must have collaboration with their regional partners in strengthening their health systems because there's a big disparity between the more developed and less developed countries (in the region),” said Budiman, who helped the Indonesian Ministry of Health’s pandemic management strategy for 20 years.
As many ASEAN countries are busy with their domestic COVID-19 situation and are facing difficulties in fully supporting each other, Budiman said it is necessary to cooperate with partners like China which has a big capacity both in technology and finance.
“As long as this collaboration is based on mutual interest, it will benefit the region,” he said.
kelly@chinadailyapac.com