Zhang Bin

The Association of Southeast Asian Nations (ASEAN) group of developing countries occupies a unique and important position in China's foreign relations. Common interests far outweigh any differences between China and its ten ASEAN near neighbors of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The opportunities for cooperation are much more significant than any difficulties.

In 1997 China's President Jiang Zemin and the leaders of the ASEAN countries issued the China-ASEAN Joint Statement. This identifies objectives and guiding principles for a partnership of good neighborliness and mutual trust between China and the ASEAN countries. It looks forward into the world of the 21st century.

In recent years within both the 10+1 (ASEAN + China) and the 10+3 (ASEAN + China, Japan and the Republic of Korea) frameworks, China-ASEAN relations have seen broadly based and steady improvement. Progress has already been significant.

The recent signing of the Framework Agreement on China-ASEAN Comprehensive Economic Cooperation represented a new breakthrough. China-ASEAN relations are as good now as they have been at any time in the history of the region.

The following observations explore the background to success. Looking first at aspects of economic and political cooperation they move on to cooperation in non-traditional security and other fields and a conclusion is presented.

Economic Cooperation

China considers the strengthening of trade and economic cooperation to be an important channel for maintaining lasting peace and security in the region. Therefore, China actively participates in all forms of regional economic cooperation and strives to open new avenues and raise the profile of multi-channel, multi-format and multi-faceted regional economic cooperation working conjointly with ASEAN and other East Asian countries.

Monetary and Financial Cooperation

Following the 1997 East Asian financial crisis, the countries of the region have attached great importance to monetary and financial cooperation. Within the 10+3 framework, China and ASEAN have implemented a series of concrete measures aimed at fostering cooperation.

China has actively implemented the Chiang Mai Initiatives. China has concluded bilateral money-swap agreements with both Thailand and Malaysia. Since 2001 the Chinese government has hosted a number of technical forums for 10+3 central bankers in Beijing and Shanghai. Results have been encouraging and future events are expected.

Trade Cooperation

In the past ten years, the volume of China-ASEAN trade has increased fourfold reaching US$41 billion by 2001. The ASEAN block has become China's fifth largest trading partner and this has been reciprocated with China becoming the sixth largest market for the ASEAN block. Two-way trade volume passed the US$33 billion mark in the first half of 2002 alone.

At the end of 2001, China and ASEAN agreed to establish a free-trade area within a decade. Then on November 4, 2002 China and ASEAN signed the Framework Agreement on China-ASEAN Comprehensive Economic Cooperation. This marked the official launch of a process that will lead to the establishment of a China-ASEAN free-trade area by 2010.

The Framework Agreement will come into force on July 1, 2003 and facilitate the elimination of both tariff and non-tariff barriers to trade in goods and services.

It sets out a sound legal basis by defining the targets for and scope of the China-ASEAN free-trade area along with the measures and timetable necessary for its implementation. In addition, China will introduce special preferential tariff arrangements for four of the 10 ASEAN countries namely Cambodia, Laos, Myanmar and Vietnam.

With more than 1.8 billion consumers representing an aggregate GDP of nearly US$2 trillion and trading volumes exceeding US$1 trillion, the free trade area is set to develop into one of the world's top three economic blocs.

The establishment of the new free-trade area is expected to result in a surge of nearly 50 percent in export trade in both directions.

China's Ministry of Foreign Trade and Economic Cooperation forecasts that trade volumes between China and ASEAN will maintain annual growth rates of over 10 percent over the next three years.

On November 4, 2002 China announced the implementation of its Asia Debt Reduction Plan. This will reduce or write off debts owed by 6 Asian countries, including Cambodia, Laos, Myanmar and Vietnam. This is another contribution made by China to promote mutual development in East Asia.

Greater Mekong Sub-region Development

Greater Mekong Sub-region (GMS) development is a key component of China-ASEAN cooperation for the new century. Economic cooperation in this sub-region will help the partners exploit their various economic strengths and expedite their economic and social development. Such cooperation is based on equality, mutual trust and mutual benefit. It serves to promote development through self-reliance among a mutually supportive group of developing countries.

Over the past ten years, Greater Mekong Sub-region economic cooperation has resulted in many important achievements. In infrastructure provision particularly there have been nearly 100 projects in such key fields as transportation, energy, telecommunications, environment, tourism, human resource development and in facilitating trade and investment.

China is the largest country in the Mekong River basin and attaches great importance to development in the region.

In 2001 at the 10th Ministerial Conference, the GMS countries endorsed a Strategic Framework for the Next Ten Years of the Greater Mekong Sub-region Economic Cooperation Program. The GMS leaders also reaffirmed a strategic action plan that included 11 flagship programs in such areas as major transportation corridors, backbone networks to support telecommunication, power networks, investment, trade and tourism.

November 3, 2002 saw the first summit meeting in the continuing development of Greater Mekong Sub-regional cooperation. At the summit, China issued a national report on its participation in the development of the Mekong River basin. This systematically outlined China's plans and future key projects.

In a keynote speech delivered at the summit meeting, Chinese Premier Zhu Rongji presented three-point proposals for principles for expansion of and improvement in the cooperation mechanisms based on:

• Equality in consultation coupled with mutual benefit;

• A project centered approach with an emphasis on practical outcomes;

• Progressive development with a focus on key areas.

It can be anticipated that China's wholehearted participation will serve to stimulate the development of the Mekong River basin. It will prove conducive to an ASEAN integration process aimed at narrowing development gaps among its members. In addition, China has also shown itself willing to participate actively in other sub-regional cooperation initiatives within the ASEAN framework, such as the East ASEAN Growth Area.

Political Cooperation

Further deepening of cooperation must be well founded on political mutual trust and all the signs now point to a new trend of East Asian political integration. Political trust between China and its ASEAN partners has reached a new high.

China views ASEAN as an important rising star on the global stage. The Chinese government has always attached great importance to ASEAN's positive role in maintaining regional peace and stability. China continues to support ASEAN in taking the leading role in the ASEAN Regional Forum.

China both highly values and actively participates in cooperation with other East Asian countries. China continues to make wholehearted efforts to build on and extend the success of ASEAN through both 10+1 and 10+3 models.

It is China's wish to continue working together with Japan and the Republic of Korea (ROK) to support ASEAN's core role in the context of the 10 countries of the ASEAN plus the 3 countries of China, Japan and ROK.

China became a dialogue partner of ASEAN in 1992. China supports and values the goals and principles pursued by ASEAN in the Treaty of Amity and Cooperation. China maintains a positive attitude towards joining the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ).

On November 4, 2002 after three years of consultation, China and the ASEAN countries signed the Declaration on the Conduct of Parties in the South China Sea in the hope of bringing lasting peace and stability to the region. This aims to reassure the world that the South China Sea is not a potential flashpoint for war and that China and ASEAN are fully capable of resolving disputes among themselves peacefully through dialogue. China and ASEAN have renounced the use of force and determined that they will maintain the status quo and strengthen cooperation to resolve any disputes they might have in the South China Sea. This milestone declaration fully demonstrates that political trust between China and the ASEAN countries has reached new heights.

China remains fully committed to dialogue and cooperation based on international law and the principle of seeking mutual benefit when settling disputes.

China has been clear and persistent in its stance on the South China Sea, which is that territorial disputes should be resolved through peaceful negotiations. All sides should seek a compromise solution and be prepared to make concessions in order to maintain a forward-looking and cooperative relationship.

China's cooperation with ASEAN on security matters is guided by a fresh security concept for which China is an active and strong advocate. In 1996 in light of current trends and the characteristics of the Asia-Pacific region, China began to actively promote the view that the countries of the region should work together to cultivate a new concept of security. This would focus on trust deepened through dialogue and security promoted through cooperation.

The new concept is, in essence, to set aside a unilateral approach to security in favor of seeking common security through mutually beneficial cooperation. In China's view, mutual trust, mutual benefit, equality and coordination are at the very core of this new approach to security.

China is working to put this new security concept into practice. Chinese leaders have actively promoted it on many occasions in recent years, both in bilateral meetings and within multi-lateral forums. The new security concept has become a cornerstone of China's foreign policy.

Cooperation in Non-traditional Security

The very concept of security has now evolved from its roots in military affairs and politics to embrace such diverse fields as economics, science and technology, the environment and culture.

Today many countries face pressing problems relating to non-traditional security issues. These can include terrorism, drug trafficking, smuggling, illegal immigration, piracy and AIDS. Current problems frequently transcend both national and regional boundaries making them difficult for any one country to tackle in isolation.

Multi-lateral cooperation is the only way forward. Cooperation in non-traditional security matters should be systematically promoted through efforts in many fields including politics, economics, diplomacy, military affairs, legislation, science and technology.

Much fresh progress has been made in non-traditional security cooperation between China and ASEAN. This too is serving well as a test of China's new security concept.

At the 2001 summit meeting, Chinese premier Zhu Rongji proposed that, while maintaining economic cooperation as its core area, 10+3 cooperation should gradually develop into the fields of political and security cooperation taking non-traditional security issues as its starting point.

ASEAN already holds annual ministerial meetings. China, Japan and the Republic of Korea are to set up a new meeting forum at the level of their ministers of public security. Based on these two mechanisms, China has proposed an annual cycle of 10+3 ministerial meetings specifically intended to target international crime.

In 2002 the 6th China-ASEAN summit has seen the issue of a joint declaration on cooperation in non-traditional security issues. Opening up new channels for bilateral cooperation, it has set out the priorities and identified areas for cooperation.

Cooperation in Other Fields

China-ASEAN cooperation has also seen advances in such other fields as agriculture, information technology, human resources development, science and technology, transportation and tourism.

At the 10+1 summit meeting in 2001, Chinese Premier Zhu Rongji and ASEAN leaders together identified the key areas for bilateral cooperation for the early years of new century. Cooperation in these fields is already being strengthened.

Agriculture

In recent years, China-ASEAN cooperation in agriculture has made good progress. Many training courses, workshops and forums on agricultural technology together with associated personnel training have been held both in China and in the ASEAN countries.

November 2, 2002 saw the signing of the China-ASEAN Memorandum of Understanding on Agriculture. This had been realized alongside the activities of the ASEAN Summit. The memorandum focuses on medium and long-term agricultural cooperation in the fields of hybrid rice, fisheries and aquaculture, biotechnology, farm products and machinery. This is being seen as just the first step in the most important area of China-ASEAN agricultural cooperation.

Information Technology

China has always supported and participated in E-ASEAN development. In the years to come, China will redouble its efforts in IT training for ASEAN personnel and take an active part in the development of the infrastructure necessary to support IT in the ASEAN countries.

In April 2001 in Shenzhen, China's Ministry of Information Industry hosted the first China-ASEAN Information and Communication Technology Seminar. A second event took place in Indonesia in 2002.

On June 18, 2002 in Singapore there were meetings involving the E-ASEAN Working Group (EAWG). Cast in the familiar 10+1 and 10+3 moulds these brought together (EAWG + China) and (EAWG + China, Japan and ROK) respectively. The Chinese delegates submitted a proposal for a memorandum of understanding on mid and long-term IT cooperation between China and ASEAN. It is hoped that given a positive response from ASEAN, it could be signed later this year.

Human Resources Development

2001 was the year immediately following China's announcement that it would contribute a further US$5 million to the China-ASEAN Cooperation Fund. In this year China proposed 14 cooperative projects in the field of human resources development. Most of these projects have already been implemented and the results have been encouraging.

In 2002 China brought forward proposals for another seven cooperative projects. All were approved at the 4th meeting of the ASEAN-China Joint Cooperation Committee and are now being implemented.

Science and Technology

China has always attached great importance to strengthening cooperation with ASEAN countries on science and technology. When the China-ASEAN Joint Committee on Science and Technology met in October 2001, both parties put forward a series of proposals for cooperative projects. These cooperation projects will be rolled out step by step in due course.

Transportation

In 2001 at the 5th in the series of 10+1 summit meetings, Chinese Premier Zhu Rongji proposed the establishment of a mechanism for meetings of transport ministers to further strengthen communication and coordination.

On May 2, 2002 China and ASEAN reached agreement on terms of reference for ASEAN-China cooperation aimed at improving land, maritime and air transport together with related infrastructure and services.

In September 2002 the first China-ASEAN Transport Ministers' Meeting was held in Jakarta. Agreement was reached to strengthen all-round cooperation in issues relating to transport by land, water and air.

China has invested US$5 million to dredge the upper reaches of the Mekong River, known in China as the Lanchang River. In addition China will provide US$30 million to fund one-third of the Laos section of the Kunming-Bangkok highway. China also supports the construction of the Pan-Asia railway to run between Kunming and Singapore.

Tourism

All the ASEAN countries have become tourist destinations for Chinese citizens with the number of visitors increasing every year. In return almost 2 million tourists came to China from the ASEAN countries in 2002 alone.

China has governmental tourism cooperation agreements or memoranda of understanding on cooperation in tourism with a number of ASEAN countries including Thailand, Singapore, the Philippines, Vietnam and Myanmar.

The first 10+3 Tourism Ministers' Meeting was convened in Yogyakarta, Indonesia on January 23-25, 2002. This marked the formal launch of cooperation on tourism within the 10+3 framework.

ASEAN countries were active participants at the China International Tourism Fair held in Shanghai in November 2002.

Conclusion

China hopes for an increasingly peaceful and favorable international environment in which to pursue its economic development. The main task for China's diplomacy in the new century is to seek to ensure just such an environment. This is particularly important in its immediate surroundings. To that end, China sticks steadfastly to good-neighborly and amity policies. The guiding principle of China's diplomacy with neighboring countries is to be friendly and to make partners of all its neighbors.

In recent years China has grown to become an important driver of economic growth in East Asia. Thanks to China's contributions to the regional economy, neighboring countries have reduced their skepticism and increased their trust in China. In place of China threat, they have increasingly acknowledged the concept of China opportunity. ASEAN now has less apprehension and a greater trust of China.

Comprehensive cooperation between China and ASEAN remains fundamental to the promotion of the East Asian cooperative process and regional stability, growth and common prosperity. China and ASEAN have entered into a new and mature stage in their cooperation.

(The author is from China Institute of International Studies)

(China.org.cn January 13, 2003)