asean – china the new economic partnership

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ASEAN – CHINA ASEAN – CHINA the New Economic the New Economic Partnership Partnership Mr. Zhou Hongli Mr. Zhou Hongli Minister Counsellor Minister Counsellor Embassy of People’s Republic of C Embassy of People’s Republic of C hina hina February 18, 2004 February 18, 2004

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ASEAN – CHINA the New Economic Partnership. Mr. Zhou Hongli Minister Counsellor Embassy of People ’ s Republic of China February 18, 2004. Main Topics:. Economic cooperation between China and ASEAN ASEAN-China Free Trade Area (ACFTA) China ASEAN Expo. China and ASEAN: Close Neighbors. - PowerPoint PPT Presentation

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Page 1: ASEAN – CHINA the New Economic Partnership

ASEAN – CHINAASEAN – CHINAthe New Economic Partnershipthe New Economic Partnership

Mr. Zhou HongliMr. Zhou HongliMinister CounsellorMinister Counsellor

Embassy of People’s Republic of ChinaEmbassy of People’s Republic of ChinaFebruary 18, 2004February 18, 2004

Page 2: ASEAN – CHINA the New Economic Partnership

Main Topics:Main Topics:

Economic cooperation between China Economic cooperation between China and ASEANand ASEAN

ASEAN-China Free Trade Area ASEAN-China Free Trade Area (ACFTA)(ACFTA)

China ASEAN ExpoChina ASEAN Expo

Page 3: ASEAN – CHINA the New Economic Partnership
Page 4: ASEAN – CHINA the New Economic Partnership

China and ASEAN: Close NeighborsChina and ASEAN: Close Neighbors

China’s foreign policy: China’s foreign policy: 1. To build friendly relationship and partnershi1. To build friendly relationship and partnershi

pp with neighbors (with neighbors ( 与邻为善与邻为善 ,, 以邻为伴以邻为伴 ); ); 2. To build amicable, tranquil and prosperous2. To build amicable, tranquil and prosperous neighborhood (neighborhood ( 睦邻,安邻,富邻)睦邻,安邻,富邻) Friendly & co-operative relations serves the fuFriendly & co-operative relations serves the fu

ndamental interests of our peoples and the stndamental interests of our peoples and the stability and development of the region.ability and development of the region.

Page 5: ASEAN – CHINA the New Economic Partnership

China-ASEAN Comprehensive China-ASEAN Comprehensive Economic CooperationEconomic Cooperation

Bilateral Trade: ASEAN remains China’s Bilateral Trade: ASEAN remains China’s the 5the 5thth largest trading partner in the past largest trading partner in the past 10 years.10 years.

Two-way investments, and contracting Two-way investments, and contracting projects and labor service have projects and labor service have increased tremendously.increased tremendously.

Close cooperation in international and Close cooperation in international and regional economic arena: WTO, APEC, regional economic arena: WTO, APEC, ASEM, ASEAN+3, ASEAN-China FTA, etc.ASEM, ASEAN+3, ASEAN-China FTA, etc.

Page 6: ASEAN – CHINA the New Economic Partnership

Characters of Bilateral TradeCharacters of Bilateral Trade

Grew fast: 20% annual increase since Grew fast: 20% annual increase since 1990;1990;

Share in China’s total trade rose: from Share in China’s total trade rose: from 5.9% in 1990 to 9.2% in 2003;5.9% in 1990 to 9.2% in 2003;

Trade balance: in favor of ASEAN Trade balance: in favor of ASEAN countries (US$16.4 billion in 2003)countries (US$16.4 billion in 2003)

China’s largest trading partner in ASEAN: China’s largest trading partner in ASEAN: Malaysia overtook Singapore since 2002. Malaysia overtook Singapore since 2002.

Page 7: ASEAN – CHINA the New Economic Partnership

Fast Trade Growth b/n China and ASEANFast Trade Growth b/n China and ASEAN

78.3

54.8

41.639.5

27.223.525

0102030405060708090

1997 1998 1999 2000 2001 2002 2003

Years

Volu

me i

n bl

n US

$

Page 8: ASEAN – CHINA the New Economic Partnership

Countri es Total Growth Chi na' s defi ci t

Mal aysi a 20128 41.04% -7846Si ngapore 19352 38.05% -1615Thai l and 12655 47.83% -4999Indonesi a 10229 29.02% -1268

Phi l i ppi nes 9400 78.73% -3212Vi etnam 4634 41.98% 1723Myamar 1077 25.01% 738Brunei 346 31.69% -278

Cambodi a 321 16.13% 269Laos 109 71.12% 87

Asean Total 78252 42.89% -16401

Trade with ASEAN Members in 2003(in million US dollars)

Page 9: ASEAN – CHINA the New Economic Partnership

Brunei0%

Vietnam6%

Cambodia0%

Indonesia13%

Laos0%

Malaysia27%

Myamar1%Philippines

12%

Thailand16%

Singapore25%

Malaysia has the Largest Shares

Page 10: ASEAN – CHINA the New Economic Partnership

Trade TargetTrade Target

China and ASEAN leaders agreed: the China and ASEAN leaders agreed: the trade between China and ASEAN trade between China and ASEAN shall reach US$100 billion in 2005.shall reach US$100 billion in 2005.

Achievable: need only 13% annual Achievable: need only 13% annual growth in the next two years.growth in the next two years.

Page 11: ASEAN – CHINA the New Economic Partnership

ASEAN Total Investment to ChinaASEAN Total Investment to China(by the end of 2003)(by the end of 2003)

Total projects: 22075Total projects: 22075 Share in China’s total: 4.75%Share in China’s total: 4.75%

Total contractual amount: US$64.59 Total contractual amount: US$64.59 billionbillion

Share: 6.84%Share: 6.84%

Total paid-up investment: US$32.37 billionTotal paid-up investment: US$32.37 billion Share: 6.46%Share: 6.46%

Page 12: ASEAN – CHINA the New Economic Partnership

Philippines5%

Thailand8%

Indonesia4%

Malaysia10%

othermembers

1%

Singapore72%

Singapore is the Largest ASEAN Investor in China

Page 13: ASEAN – CHINA the New Economic Partnership

Projects Chinese InvestmentVietnam 90 93.14Laos 20 37.86Cambodia 65 158.41Myamar 38 66.14Thailand 245 263.84Malaysia 105 38.88Singapore 188 97.87Indonesia 65 168.07Brunei 1 0.45Philippines 40 16.41Asean Total 857 941.08

Total Chinese Investment in ASEAN( by the end of 2003,in million US$)

Page 14: ASEAN – CHINA the New Economic Partnership

Shares of Chinese Investment in Shares of Chinese Investment in ASEAN against in Asia and the WorldASEAN against in Asia and the World

Asean15%

Other Asi anCountri es

85%

Share in Asia

Rest ofthe

worl d92%

Asean8%

Share in the world

Page 15: ASEAN – CHINA the New Economic Partnership

Process of Establishing ACFTAProcess of Establishing ACFTA

At the 4th ASEAN+China (10+1) Summit in SAt the 4th ASEAN+China (10+1) Summit in Singapore in November 2000, leaders of ASEingapore in November 2000, leaders of ASEAN and China agreed to explore the possibiAN and China agreed to explore the possibility of establishing a free trade area (FTA).lity of establishing a free trade area (FTA).

The ASEAN and China Expert Group on EcoThe ASEAN and China Expert Group on Economic and Cooperation was formed to stunomic and Cooperation was formed to study the feasibility of FTA.dy the feasibility of FTA.

Page 16: ASEAN – CHINA the New Economic Partnership

Process of Establishing ACFTAProcess of Establishing ACFTA

At 5th ASEAN+China Summit in Brunei in NovAt 5th ASEAN+China Summit in Brunei in November 2001, leaders endorsed the proposal ember 2001, leaders endorsed the proposal made by the Expert Group for a Framework omade by the Expert Group for a Framework on Economic Cooperation and to establish an n Economic Cooperation and to establish an ASEAN-China Free Trade Area within 10 yearASEAN-China Free Trade Area within 10 years.s.

Trade Negotiation Committee was formed to Trade Negotiation Committee was formed to negotiate tariff reduction or elimination.negotiate tariff reduction or elimination.

Page 17: ASEAN – CHINA the New Economic Partnership

Process of Establishing ACFTAProcess of Establishing ACFTA

At 6th ASEAN+China Summit in Cambodia iAt 6th ASEAN+China Summit in Cambodia in November 2002, leaders singed “Framen November 2002, leaders singed “Framework Agreement on Comprehensive Econowork Agreement on Comprehensive Economic Cooperation between ASEAN and Chinmic Cooperation between ASEAN and China”.a”.

The Agreement is the groundwork for estabThe Agreement is the groundwork for establishment of ACFTA by 2010 for the 6 older Alishment of ACFTA by 2010 for the 6 older ASEAN members and 2015 for 4 newer memSEAN members and 2015 for 4 newer members.bers.

Page 18: ASEAN – CHINA the New Economic Partnership

Process of Establishing ACFTAProcess of Establishing ACFTA

At 7th ASEAN+China Summit in Indonesia iAt 7th ASEAN+China Summit in Indonesia in October 2003, leaders signed Protocol to n October 2003, leaders signed Protocol to Amend the Framework Agreement.Amend the Framework Agreement.

to concrete certain issues, especially “Earlto concrete certain issues, especially “Early Harvest Programme”, which already stary Harvest Programme”, which already started on January 1 2004, and “Rules of Origited on January 1 2004, and “Rules of Origin”n”

Page 19: ASEAN – CHINA the New Economic Partnership

What to happen in 2004What to happen in 2004

ASEAN and China agreed ASEAN and China agreed negotiations for the trade in goods negotiations for the trade in goods component of the FTA will be component of the FTA will be concluded by 30 June 2004 concluded by 30 June 2004

Page 20: ASEAN – CHINA the New Economic Partnership

Significance of ACFTASignificance of ACFTA

Third largest FTA in terms of economy Third largest FTA in terms of economy and trade, next to NAFTA and EU.and trade, next to NAFTA and EU.

The Largest FTA in terms of population:The Largest FTA in terms of population:1.7 billion of population1.7 billion of populationUS$2000 billion of GDPUS$2000 billion of GDPUS$ 1200 billion of tradeUS$ 1200 billion of trade

Unlike NAFTA and EU, ACFTA is Unlike NAFTA and EU, ACFTA is dominated by developing countriesdominated by developing countries..

Page 21: ASEAN – CHINA the New Economic Partnership

ACFTA Tariff ReductionACFTA Tariff Reduction Products in the Normal Track: Products in the Normal Track:

tariff rates to be gradually reduced or tariff rates to be gradually reduced or eliminated over a period from 1 January eliminated over a period from 1 January 2005 to 20102005 to 2010 for ASEAN 6 and China, and for ASEAN 6 and China, and from 1 January 2005 to 2015from 1 January 2005 to 2015 for ASEAN 4;for ASEAN 4;

Products listed in the Sensitive Track:Products listed in the Sensitive Track: tariff rates to be reduced in accordance tariff rates to be reduced in accordance with the mutually agreed end rates and with the mutually agreed end rates and end dates.end dates.

Page 22: ASEAN – CHINA the New Economic Partnership

Early Harvest ProgrammeEarly Harvest Programme

Chapter Description 01 Live Animals 02 Meat and Edible Meat Offal 03 Fish 04 Dairy Produce 05 Other Animals Products 06 Live Trees 07 Edible Vegetables 08 Edible Fruits and Nuts

Tariff reduction commenced from January 1 2004, 0% tariff rates by 2006. It covers more 500 products, mostly agricultural products listed in the first 8 Chapters of HS Code.

Page 23: ASEAN – CHINA the New Economic Partnership

Rules of origin

At least 40% of contents from ACFTA

Trade in service

For services and investment, negotiations commenced in 2003 and would be concluded as expeditiously as possible. 

Page 24: ASEAN – CHINA the New Economic Partnership

ACFTA also Covers ACFTA also Covers Cooperation in Other AreasCooperation in Other Areas

Cooperation in 5 priority sectors, Cooperation in 5 priority sectors, namelynamely::(a) agriculture;(a) agriculture;(b) information and communications (b) information and communications technology;technology;(c) human resources development;(c) human resources development;(d) investment; and(d) investment; and(e) Mekong River basin development.(e) Mekong River basin development.

Page 25: ASEAN – CHINA the New Economic Partnership

And other areasAnd other areas: banking, finance, touri: banking, finance, tourism, industrial cooperation, transport, tesm, industrial cooperation, transport, telecommunications, intellectual property lecommunications, intellectual property rights, small and medium enterprises (Srights, small and medium enterprises (SMEs), environment, bio-technology, fishMEs), environment, bio-technology, fishery, forestry and forestry products, miniery, forestry and forestry products, mining, energy and sub-regional developmeng, energy and sub-regional development. nt.

Page 26: ASEAN – CHINA the New Economic Partnership

Other Measures Relating to TradeOther Measures Relating to Trade Elimination non-tariff barriers;Elimination non-tariff barriers;

Progressive liberalisation of trade in Progressive liberalisation of trade in services with substantial sectoral services with substantial sectoral coverage;coverage;

Establishment of effective trade Establishment of effective trade facilitation measures, including, but not facilitation measures, including, but not limited to, simplification of customs limited to, simplification of customs procedures and development of mutual procedures and development of mutual recognition arrangements;recognition arrangements;

Page 27: ASEAN – CHINA the New Economic Partnership

Welcome to CHINA-ASEAN EXPO Welcome to CHINA-ASEAN EXPO At the 7th ASEAN+China(10+1) Summit MeetinAt the 7th ASEAN+China(10+1) Summit Meetin

g, on October 8 2003, Chinese Premier Wen Jiag, on October 8 2003, Chinese Premier Wen Jiabao suggested that a China–ASEAN Expo be hebao suggested that a China–ASEAN Expo be held yearly, starting from 2004, in Nanning, Chinld yearly, starting from 2004, in Nanning, China to promote mutual commercial cooperation. a to promote mutual commercial cooperation.

Chinese Premier’s proposal was welcomed bChinese Premier’s proposal was welcomed by ASEAN leaders and was later written into the y ASEAN leaders and was later written into the Chairman's Statement of the SummitChairman's Statement of the Summit

Page 28: ASEAN – CHINA the New Economic Partnership

Purpose of CHINA-ASEAN EXPO Purpose of CHINA-ASEAN EXPO

To promote the construction of To promote the construction of China-ASEAN Free Trade Area China-ASEAN Free Trade Area (CAFTA), sharing opportunities of (CAFTA), sharing opportunities of cooperation and development.cooperation and development.

Page 29: ASEAN – CHINA the New Economic Partnership

TIME AND VENUETIME AND VENUE Every November, starting from 2004, in GuanEvery November, starting from 2004, in Guan

gxi, Chinagxi, China

This year: This year: November 3-6, 2004November 3-6, 2004, at Nanning I, at Nanning International Convention and Exhibition Cententernational Convention and Exhibition Center.r.

Page 30: ASEAN – CHINA the New Economic Partnership

SPONSORS AND ORGANIZERS:SPONSORS AND ORGANIZERS:

SponsorsSponsors: Ministry of Commerce of China : Ministry of Commerce of China Ministries of Trade or Commerc Ministries of Trade or Commerc

ee of ASEAN Members of ASEAN Members

OrganizerOrganizer: Government of Guangxi Zhuang: Government of Guangxi Zhuang Autonomous Region, China Autonomous Region, China

Page 31: ASEAN – CHINA the New Economic Partnership

SCALE OF THE EXPO:SCALE OF THE EXPO: Accommodates 2,000 international Accommodates 2,000 international

standard exhibition booths, standard exhibition booths,

200 non-standard booths 200 non-standard booths

An outdoor exhibition area of 26,000 An outdoor exhibition area of 26,000 square meters. square meters.

It is estimated to receive some 20,000 It is estimated to receive some 20,000 businessmen worldwide. businessmen worldwide.

Page 32: ASEAN – CHINA the New Economic Partnership

ACTIVITIESACTIVITIES Trade in goodsTrade in goods: to promote trade among ACFTA : to promote trade among ACFTA

members;members;

Talks on investmentTalks on investment: to enlarge two-way : to enlarge two-way investment in ACFTA, introducing investment investment in ACFTA, introducing investment environment, releasing investment information;environment, releasing investment information;

Trade in services and other areas of Trade in services and other areas of cooperationcooperation: to promote the flow of capital, : to promote the flow of capital, information, talents, enhance the cooperation in information, talents, enhance the cooperation in tourism, telecommunication, logistics, finance, tourism, telecommunication, logistics, finance, projectproject contracting and other areas; contracting and other areas;

Page 33: ASEAN – CHINA the New Economic Partnership

ACTIVITIESACTIVITIES Theme seminarsTheme seminars: on hot topics of CAFTA : on hot topics of CAFTA

construction, which invite the attendances of construction, which invite the attendances of government officials, experts, researchers, government officials, experts, researchers, and entrepreneursand entrepreneurs

Culture exchangeCulture exchange: showing the splendid : showing the splendid culture of all nations that would further culture of all nations that would further promote mutual understanding and friendshippromote mutual understanding and friendship

Page 34: ASEAN – CHINA the New Economic Partnership

For Participation and More InformationFor Participation and More Information

1. 1. IE SingaporeIE SingaporeMr. Lim Kay SiongMr. Lim Kay SiongTel: 64334477Tel: 64334477Fax: 62387560Fax: 62387560

2. 2. Guangxi Economic and Trade CommissionGuangxi Economic and Trade CommissionMr. Nong Rong or Ms. Huang YuanMr. Nong Rong or Ms. Huang YuanTel: (86771)-2109510 or 2109509Tel: (86771)-2109510 or 2109509Fax: (86771)-2109835 or 2109266Fax: (86771)-2109835 or 2109266Email: [email protected]: [email protected]: www.caexpo.orgWebsite: www.caexpo.org