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Regional integration key to growth
2010-May-24 07:56:26

China playing an important role in promoting balanced economic growth in both Southeast and Northeast Asia

China is playing an increasingly important role in promoting regional integration and cooperation in Asia, according to participants at an international symposium held earlier this month in Nanning, Southwest China's Guangxi Zhuang autonomous region.

The conference was held just days before Chinese Premier Wen Jiabao's planned visits to four Asian countries and his meetings with his counterparts from the Republic of Korea (ROK) and Japan, the third meeting of its kind.

Leaders of the Shanghai Co-operation Organization (SCO) are also scheduled to meet in Tashkent, the capital of Uzbekistan on June 12.

The premier's presence at these two summits underscores China's pro-active role in regional co-operation.

The financial problems in Europe following Greece's debt crisis has caused much uncertainty regarding world economic recovery.

The world has been looking at Asian countries to shore up the global economy since last year. Under such a context, closer co-operation and faster regional integration will help the entire region grow stronger and become better prepared to counter the negative impact of the debt crisis in the Euro zone.

China is willing to work together with its Asian neighbors with greater enthusiasm and push Asia's regional co-operation and economic integration to a higher level.

"Regional economic integration has become a popular trend after multilateral trade negotiations hit a snag in recent years. Against such a background, China has been actively involved in a number of regional frameworks since the 1990s and engaged in cooperation in a full spectrum of areas with related Asian countries," said Zhang Kening, commercial counselor of the international department under the Ministry of Commerce (MOFCOM).

Zhang and other MOFCOM officials who participated at the Nanning conference said China was now actively involved in regional groupings such as the 10+1 (ASEAN-China), 10+3 (ASEAN-China, ROK, Japan), SCO, Greater Mekong Sub-region Cooperation (GMS), Pan-Beibu Gulf Economic Cooperation, Central Asia Cooperation and Greater Tumen Initiative in Northeast Asia.

Bilateral and multilateral cooperation has been conducted in a wide range of fields including transportation, infrastructure, energy, facilitation of trade and investment, tourism, environment, agriculture and health.

China's increasing participation has cemented the country's image as a trustworthy partner and won acclaim from international partners.

"The trend of regional integration is gaining momentum in Asia and China is the driving force behind it," said Juergen Steiger, deputy country director with GTZ China, the regional chapter of the German government's aid agency.

"China's consistent and pragmatic approach to these initiatives is helping improve connectivity, expand trade, and create jobs in participating provinces and neighboring countries," said David Kruger, senior specialist with the Asian Development Bank Institute.

Kruger said China's participation is on an equal footing with other countries so as to build mutual respect and trust.

International organizations like the UNDP, the ADB and GTZ have been indispensable players in regional cooperation. They have been disbursing funds and giving technical support to various regional projects.

"Clear planning, consistent interaction, and concrete projects are key ingredients in successful regional cooperation," Kruger observed.

Since 1992, the UNDP has been involved in the Greater Tumen Initiative in Northeast Asia which includes China, Russia and the ROK, with the Democratic People's Republic of Korea's status as a pending member.

The ADB initiated the GMS in 1992 and Central Asia Cooperation in 1996.

The GTZ is initiating a number of projects for sub-regional cooperation in Asia in the light of experience gained from the integration of the European Union.

Official figures indicate China-ASEAN trade surpassed $192 billion last year, and is growing at an annual rate of 24 to 30 percent. Since the free trade agreement (FTA) came into effect from the beginning of this year, trade volume among the participating countries has gone up significantly.

While strengthening trade ties in traditional fields, the China-ASEAN FTA also opens the door for exploration of new areas. For ASEAN countries, the demand for more goods and services from China's growing middle class indicates more business opportunities, as they will be among the first to cater to this need.

The SCO, grouping China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, came into being in 2001 as a regional platform to address security concerns. "Over the years, regional economic cooperation has thrived to be an important growth pole of the SCO too," said Liu Huaqin, an expert at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM.

In 2008, the entire trade volume among SCO member countries touched $86.8 billion, more than six times the figure in 2001, Liu said. Expanded trade has also made SCO member states each other's major trade partner, she said.

The Guangxi Zhuang autonomous region is also benefiting from the prevailing trend, as it is a stronghold in China's trade ties with its Southeast Asian neighbors.

According to Liu Shusen, head of the region's department of commerce, the region's total economic aggregate saw an annual increase of 12.1 percentage points since 2001 to reach 770 billion yuan ($113.2 billion) in 2009.

Strengthened economic ties also draw countries closer and bridge gaps between Asian countries that are in different development stages. Governments and academicians in Asia now agree that regional integration, which is the key for sustainable development and common prosperity, should progress at an even faster pace.

To this end, Juergen Steiger suggests, China should play a stronger role in facilitating and coordinating provincial participation in sub-regional economic integration.

The slow pace in East Asia integration could be a case in point. While some regions in Japan are all for closer cooperation, the Japanese government's attitude remains lukewarm.

Due to the tensions in the Korean Peninsula, northeast Asian and East Asian cooperation has been slow in recent years, said Jin Qiangyi, director of Yanbian University's Institute of Northeast Asian Studies.

If not for this irritant, northeast Asia could echo Southeast Asia strategically, painting an even brighter picture of regional integration today, the expert said.

(China Daily 05/24/2010 page8)

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