¡¡¡¡BEIJING, Nov. 4 (Xinhuanet) -- Chinese Premier Zhu Rongji and leaders of the
ASEAN (Association of Southeast Asian Nations) member countries signed a
landmark framework agreement Monday on enhancing full-range economic
cooperation, marking the beginning of setting up a China-ASEAN free trade zone.
¡¡¡¡The signing of the agreement in Phnom Penh, Cambodia, was a major step for
China and ASEAN toward coming out on top in the face of a world economic
slowdown, analysts said.
¡¡¡¡Last November, Zhu and the ASEAN leaders made the decision to build a
China-ASEAN free trade zone -- the world's largest -- within 10 years. The
decision, analysts say, represents the political desire for strengthening
good-neighborly cooperative relations.
¡¡¡¡"That was both a political decision and a natural outcome of the growing
economic relations between the two sides," said an official with the Ministry of
Foreign Trade and Economic Cooperation, who declined to be named.
¡¡¡¡Chinese and ASEAN experts have predicted that the China-ASEAN free trade
zone, once established, will create an economic area of1.7 billion consumers,
about 2,000 billion US dollars worth of gross domestic product (GDP) and a trade
volume of 1,200 billion US dollars.
¡¡¡¡With the free trade zone in operation, China's exports to
ASEANwill increase by 10.6 billion US dollars, or 55 percent, and its imports from
ASEAN will rise by 13 billion US dollars, or 48 percent. Two-way investment will
also surge, experts say.
¡¡¡¡Chinese and ASEAN officials kept busy following last November'sdecision,
establishing a trade negotiation committee and launchingworking-level
negotiations in May this year.
¡¡¡¡On Sept. 13, the first China-ASEAN economic ministers meeting was held in
Brunei, and a consensus was reached on the time frame for setting up the
China-ASEAN free trade zone.
¡¡¡¡Analysts say the framework agreement signed in Phnom Penh Monday lays a
legal foundation for the free trade zone. It makes clear the relevant goals,
ranges, measures, time span, early schedules, detailed arrangements concerning
economic and technological cooperation, promises on offering Vietnam, Laos and
Cambodia most-favored-nation treatment, and future negotiation arrangements on
cargo, service and investment.
¡¡¡¡As neighbors, China and ASEAN countries enjoy advantages in promoting
economic and trade cooperation. By 1991, China had established diplomatic ties
with all ASEAN countries, and five years later, it became an all-round dialogue
partner of ASEAN.
¡¡¡¡In 1997, President Jiang Zemin and ASEAN leaders decided to boost the
good-neighborly cooperation of mutual trust in the 21st century, which laid a
solid foundation for further economic ties.
¡¡¡¡The two sides enjoy huge economic and trade potential owing to their
complementary economies in energy and industrial structures.Recent years
witnessed the rapid development of China-ASEAN economic relations, with
bilateral trade growing at an average annual rate of 15 percent since 1995.
¡¡¡¡Last year, despite the downturn of the global economy and the Sept. 11
incident, bilateral trade still reached 41.6 billion US dollars, up 5 percent on
a year-on-year basis.
¡¡¡¡Currently, ASEAN is China's fifth largest trade partner and China is the
sixth largest trade partner of ASEAN. In the first nine months this year,
bilateral trade rose 27.19 percent to 38.55billion US dollars.
¡¡¡¡Analysts here say ASEAN countries now wish to gain the maximum benefit from
China's booming economy, and both sides realize the necessity of strengthening
economic ties in the face of regional economic integration.
¡¡¡¡Experts, who predict the China-ASEAN free trade zone would be asuccessful
model for cooperation among developing countries, believe the latest development
in China-ASEAN relations would enable the two sides to make joint efforts to
reduce the risks brought about by economic globalization and strengthen the
position of Asian countries in international trade and economic affairs. Enditem
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