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Business / Economy

China injects new dynamism to Asia-Pacific integration

(Xinhua) Updated: 2015-12-21 13:30

The China-Laos railway is the first overseas route that would connect Laos with the vast railway system in China, using Chinese technology, equipment and investment. While the 845-km railway in Thailand which applies Chinese technology and will be connected to the China-Laos railway. The two railway projects will help to promote exchanges and cooperation among the ASEAN members in trade, investment, logistics, tourism, science and technology, and culture.

Lim noted that China's medium and high-speed rail development in mainland Southeast Asia under the "One Belt and One Road" Initiative fits in with ASEAN's own plans for the Singapore-Kunming Rail Link.

"Cooperation with China offers a solution for ASEAN to meet the significant funding gap that has prevented full implementation of its Master Plan for Connectivity." said Lim.

China's inclusiveness benefits asia-pacific integration

It is known that the devil of economic integration is in the implementation of the myriad of policies at regional and domestic levels. On this point, China has demonstrated its responsibility as the second largest economy in the world.

Irene Chan, associate research fellow with S. Rajaratnam School of International Studies of Nanyang Technological University, said that the China-proposed Belt and Road Initiative shows the country has recognized this major challenge and committed to resolving it.

"The initiative has become an important part of regional economic integration as it dovetails not only with the APEC Connectivity Blueprint but also with the sub-regional Master Plan for ASEAN Connectivity. On top of that, the Belt portion of the initiative provides the Asia-Pacific region possible links to other regions, particularly the largely untapped Central Asia region." said Chan.

Echoing Chan, Lim said "The Belt and Road projects in ICT, air transportation, human resource development, and energy likewise dovetail with similar projects in the ASEAN Master Plan for Connectivity."

In the context that China's economy has been undergoing the period of transformation, Lim noted China's economic transformation is creating a vast consumer market and ASEAN's industrialists and entrepreneurs have many opportunities.

Gu Qingyang, associate professor of the Lee Kuan Yew School of Public Policy of National University of Singapore, said that China's open-up in a deeper degree will push Asia-Pacific integration forward, and the region will also benefit from China's economic development.

"Although China's economic growth has slowed down, China is still a major force of global economic growth. Adopting more open economic initiatives, such as reducing the thresholds for foreign investment, will propel economic development of the Asia-Pacific and the integration of the region." said Gu.

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