BEIJING, Nov. 14 (Xinhua) -- A proposal made by Chinese Premier Li Keqiang to expedite interconnectivity with China's diplomatically prioritized neighbors in the ASEAN bloc is expected to boost bilateral relations and generate new momentum for growth.
During a series of leaders' meetings on East Asian cooperation held in Myanmar on Thursday, the premier said China would offer over 20 billion U.S. dollars in loans to support Southeast Asian interconnectivity.
The offer includes a preferential loan worth 10 billion dollars for the ASEAN member bloc and a 10 billion dollar loan, set up by the China Development Bank, for regional infrastructure development.
Li said that interconnectivity was a prerequisite for healthy regional trade, and investment liberalization.
China and Southeast Asian countries should ensure sufficient and smooth sea, air and land transportation links; enhanced planning and construction in the fields of telecommunication, electric power and Internet infrastructure; as well as improved convenience in the areas of customs clearance, and market regulations, supervision and standardization.
"The interconnection proposal made by the premier will be a pillar for China-ASEAN relations in the future and create new growth," said vice president of the China Institute of International Studies Ruan Zongze.
Ruan said that the financial support was welcomed by ASEAN.
"[Infrastructure projects], such as bridges, roads and ports will unleash massive growth potential. Many Southeast Asian nations have the demand for more infrastructure projects, however, without sufficient funding," Ruan said during an online interview on the Chinese central government's website on Friday.
According to an estimate by the Asia Development Bank in 2009, Asia needs about 8 trillion U.S. dollars in investment by 2020 to improve the region's battered infrastructure and to keep their economies humming.
China also proposed the establishment of an Asian Infrastructure Investment Bank (AIIB) to fund infrastructure projects in underdeveloped Asian countries.
Last month, a total of 21 Asian economies inked a Memorandum of Understanding (MoU) on the establishment of the AIIB with expected initial subscribed capital of 50 billion U.S. dollars.
Analysts said that the AIIB would complement rather than rival existing donor banks, whose priorities are more on poverty reduction.
World Bank President Jim Yong Kim also said in July that the proposed AIIB would be a new force to battle poverty and bring shared prosperity globally, as current investment cannot finance infrastructure investment in developing nations.
During the Asia-Pacific Economic Cooperation (APEC) Beijing meetings that concluded this week, Chinese President Xi Jinping announced China will contribute 40 billion U.S. dollars to set up a Silk Road Fund, which will support infrastructure; resources; industrial cooperation; financial cooperation; and other projects among countries along the "Belt and Road".
The Belt and Road notion refers to the Silk Road Economic Belt, which runs from China via Central Asia and Russia to Europe, and the 21st Century Maritime Silk Road, which runs through the Straight of Malacca to India, the Middle East and East Africa.
Ruan said that the AIIB and the Silk Road Fund would assist with the capital bottleneck faced by Southeast Asian nations.
"Apart from the aforementioned infrastructure projects, China and ASEAN also face a continuing urbanization process, which will only bring about new needs," he said.
"However, we really need to start with concrete projects, the success of which may further show that China-ASEAN cooperation in interconnectivity building can truly improve infrastructure, boost regional economic development, and create jobs," he said.
