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Business / Economy

China plays crucial role in advancing South-South cooperation

(Xinhua) Updated: 2015-04-15 13:38

JAKARTA - As China has become a powerhouse in global economy, the fast-growing nation has been playing a crucial role in advancing South-South cooperation with its vast economic potential and"One Belt One Road"initiative.

The highly-expected contribution of China to help promote South- South cooperation would get steam with the holding of 60th Asia Africa Conference (AAC) slated for this week in Indonesian cities of Jakarta and Bandung.

"China's role is very important in Asia and Africa. Its economy has grown rapidly, serving as a role model for AAC countries," Jusuf Wanandi, the co-founder of leading think-tank agency Center for Strategic and International Studies (CSIS), told Xinhua on the sidelines of a forum to promote South-South cooperation held here on Tuesday.

Reports said that 29 head of states, including Chinese President Xi Jinping, have confirmed their attendance at the event that is expected to encourage Asian and African countries in pushing forward South-South cooperation.

Jusuf hailed China's"One Belt One Road"initiative aimed at advancing developments in countries in southern hemisphere through connectivity improvement, saying that it would significantly boost economic cooperation among developing countries.

"The idea of"One Belt One Road"initiative through the land and maritime interconnection would be an important contribution of China to the world," Jusuf said.

The"One Belt One Road"initiative comprises the Silk Road Economic Belt that links China with Europe through Central and Western Asia and the 21st Century Maritime Silk Road (MSR) which will connect China with Southeast Asian nations, Africa and Europe.

Jusuf said that the MSR initiative was in line with Indonesian President Joko Widodo's idea, called Maritime Highway, to rejuvenate the archipelago nation's maritime connectivity during his administration.

"The two ideas can be aligned as both are complimentary to each other,"he said.

The Indonesian government has planned to build 24 new seaports across the country to improve maritime interconnectivity, particularly to serve the nation's less developed eastern region.

The country is in dire need to develop its transportation infrastructure so as to facilitate distribution that would eventually reduce high logistic cost of businesses. The government also aims to upgrade power infrastructure through building more power plants.

With more advanced infrastructure, President Joko Widodo hopes to see a 7 percent growth rate at the end of his term in 2019.

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