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China / Government

China, ASEAN embarking on cooperation of 'diamond decade'

(Xinhua) Updated: 2014-11-11 17:37

GREAT SCOPE FOR FUTURE GROWTH

Last year, Chinese Premier Li Keqiang proposed upgrading a Free Trade Area between China and ASEAN, which will entail further reduction of tariff and non-tariff barriers, new round of service trade talks and opening-up for mutual investment.

The China-ASEAN FTA, launched in 2010, has become the largest among developing nations, covering a total population of 1.9 billion.

The first talks on the upgraded version of the CAFTA were held in Hanoi, Vietnam, in September and the next round is to be hosted by China in 2015.

"China's initiative has been well responded by the ASEAN nations, which also appreciate Beijing's determination and sincerity to advance its relations with ASEAN," said Gong.

In the future, two-way investment, major infrastructure projects, e-commerce and cross-border Chinese currency RMB transactions are likely to play a bigger role in the China-ASEAN economic ties.

Chen Zhou, director of the department of Asian affairs of the Chinese Ministry of Commerce, said China's business model with ASEAN has changed from exporting goods to establishing manufacturing facilities, as well as research and development centers and sales networks.

"This shift could have great business implications as it comes at a time when both sides are eager to diversify and adjust their industrial structure for exports," he said.

Accumulated investment between China and ASEAN countries hit $123.1 billion by the end of September this year, and both sides are eager to boost their mutual investment to $150 billion in the years to 2020.

In October, 21 Asian countries, including nine ASEAN nations, established an Asian Infrastructure Investment Bank in Beijing, with a view to speeding up infrastructure in energy, power, transportation, telecommunications, as well as agricultural and urban development.

"The ASEAN countries want to use China's investment to improve their infrastructure, which will certainly consolidate the economic bond between the two sides," said Xiao Wunan, executive vice chairman of the Asia Pacific Exchange & Cooperation Foundation.

He believed that an improved infrastructure system, such as high-speed railway, electricity and telecom networks, will further boost the transfer of technology, export of goods and movement of skilled labor in the region.

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