21st Century Business Herald:
Since the RCEP took effect on Jan. 1, trade between China and ASEAN countries has been growing rapidly.
How does the MOFCOM view their further cooperation, and what are MOFCOM's following considerations and arrangements? Thank you!
Sheng Qiuping:
Thank you for your questions. China and ASEAN countries have been old neighbors, good friends, and good partners as they enjoy unique geographical proximity, cultural affinity, and complementary advantages. The year 2021 marks the 30th anniversary of the establishment of China- ASEAN dialogue relationship. Over the past three decades, China-ASEAN cooperation has seen remarkable progress, and the China-ASEAN economic relationship achieved leapfrog development. Last year, trade and economic cooperation between the two sides maintained good momentum, showing strong resilience and huge potential.
First, trade has further expanded. Since 2009, China has remained ASEAN's largest trade partner for 13 consecutive years. Last year, the trade volume hit a new record, reaching 878.2 billion U.S. dollars, accounting for 14.5% of China's total foreign trade. The ASEAN has been China's largest trade partner for two consecutive years, with the trade structure being continuously improved and the industrial and supply chains being connected more closely.
Second, the two-way investment has been booming. As of the end of 2021, the China-ASEAN two-way investment registered about 300 billion U.S. dollars. A large batch of projects has been brought forward under their joint efforts. Industrial parks are one of the highlights. Chinese enterprises have established economic and trade cooperation zones in Thailand, Indonesia, Vietnam, and other ASEAN countries, which has played an important role in local industry development. Good examples for such cooperation include the China-Singapore Suzhou Industrial Park; the China-Malaysia Cooperation on the "Two Countries, Twin Parks" (specifically China-Malaysia Qinzhou Industrial Park and Malaysia-China Kuantan Industrial Park); the China-Indonesia Cooperation on the "Two Countries, Twin Parks" (specifically the Yuanhong Investment Zone in Fuqing; Fujian Province as the Chinese park; and the Bintan Industrial Estate, the Aviarna Industrial Estate, and the Grand Batang City (collectively known as the Indonesian park).
Third, connectivity has been increasingly strengthened. The two sides have advanced the docking of the Belt and Road Initiative with the Master Plan on ASEAN Connectivity 2025 and boosted connectivity. Means of cooperation have been innovated, and a batch of infrastructure projects covering railway, highroad, ports, airports, bridges, and electricity grids have been advanced or completed. The China-Laos Railway started operation and the China-Singapore connectivity project, dubbed the "New International Land-Sea Trade Corridor," have seen remarkable progress.
Fourth, regional economic integration has been accelerated. As you have mentioned, the RCEP took effect on Jan. 1, as scheduled, through the joint efforts of China and ASEAN countries. On the same day, the China-Cambodia Free Trade Agreement also came into force. The two sides have also agreed to upgrade the China-ASEAN Free Trade Area to a higher level so as to promote trade and investment liberalization and facilitation.
In November last year, President Xi Jinping announced the establishment of a comprehensive strategic partnership with ASEAN leaders at the ASEAN-China Special Summit to Commemorate the 30th Anniversary of ASEAN-China Dialogue Relations, which is a new milestone in the history of China-ASEAN relations. Standing at a new historical starting point, we will work with the ASEAN to fully implement the important consensus reached by the leaders of both sides, push China-ASEAN economic and trade cooperation to a new level, and build a closer China-ASEAN community with a shared future.
First, we will deepen trade and investment cooperation. President Xi Jinping announced at the summit that China will import $150 billion of agricultural products from ASEAN in the next five years. We will actively promote the implementation by making good use of exhibition platforms such as the China International Import Expo and the China-ASEAN Expo and expanding the import of agricultural products and other high-quality products from ASEAN. We will better meet domestic needs through these efforts. In terms of investment cooperation, we will focus on expanding cooperation in new fields such as combating COVID-19, digital economy, green and low-carbon growth, promoting successful cooperation models, and jointly building demonstration parks for economic and trade innovation and development.
Second, we will strengthen the connections between industrial chains and supply chains. We will work with all parties to successfully hold the ASEAN Plus China, Japan, and the Republic of Korea (10+3) forum for cooperation on industrial and supply chains, jointly respond to the new situation and challenges of the global industrial chain and supply chains, and promote the coordination, innovation and sustainable development of the regional industrial chain and supply chains. Furthermore, we will continue to encourage the construction of new land-sea corridors and play a supporting role in interconnection, economic and trade cooperation, and industrial and supply chains.
Third, we will improve the institutional arrangements for economic and trade development. We will work with ASEAN and other parties to implement the RCEP well and promote the agreement to enter into force in more countries. We will expedite follow-up talks to complete the upgrading of the China-Singapore Free Trade Agreement within this year. We will actively promote the third version of the joint feasibility study of the ASEAN–China Free Trade Area, expand cooperation in new fields such as the digital economy, strive to start negotiations as soon as possible, and cooperate with ASEAN to build a more inclusive, modern, comprehensive and mutually beneficial free trade agreement.
In conclusion, in the new year, the MOFCOM will continue to deepen China-ASEAN economic and trade cooperation and promote the building of a closer China-ASEAN community with a shared future. Thank you.
