ASEAN-CHINA DIALOGUE RELATIONS
Introduction
1. ASEAN-China dialogue relations started when H.E. Qian Qichen, the Foreign Ministry of the People’s Republic of China attended the opening session of the 24th ASEAN Ministerial Meeting in July 1991 in Kuala Lumpur as a guest of the Malaysian Government. China expressed its keen interest to cooperate with ASEAN for mutual benefit. China was accorded full Dialogue Partner status at the 29th AMM in July 1996 in Jakarta.
2. At the 7th ASEAN-China Summit in October 2003 in Bali, the Joint Declaration of the Heads of State/Government on Strategic Partnership for Peace and Prosperity was signed. A five-year (2005-2010) Plan of Action was adopted in 2004 to implement the Joint Declaration. The Plan of Action has served as the master plan to broaden and deepen ASEAN-China dialogue relations in a comprehensive and mutually beneficial manner with the view of strengthening the strategic partnership for regional peace, development and prosperity. A new five year Plan of Action (2011-2015) was adopted at the 13th ASEAN-China Summit in October 2010 in Ha Noi.
3. ASEAN and China had agreed to cooperate on eleven priority areas of cooperation, namely agriculture, information and communication technology, human resource development, Mekong Basin Development, investment, energy, transport, culture, public health, tourism and environment.
Political and Security Cooperation
4. ASEAN and China continued to enhance their close and strategic partnership through regular dialogues and consultations, such as ASEAN-China Summit, ASEAN-China Ministerial Meeting. ASEAN-China Senior Officials Consultations, and other related meetings on bilateral, regional and global issues of common interests and concerns. China supports ASEAN’s role as the driving force of the regional processes initiated by ASEAN such as ASEAN Plus Three (APT), ASEAN Regional Forum (ARF), ASEAN Defence Ministers’ Meeting Plus (ADMM-Plus) and East Asia Summit (EAS).
5. China was the first dialogue partner of ASEAN to accede to the Treaty of Amity and Cooperation (TAC) in Southeast Asia at the 7th ASEAN-China Summit in October 2003 in Bali. China’s accession to the TAC has contributed to the stature of the TAC as the code of conduct for inter-state relations in the region. China has also expressed its intention to accede to the Protocol to the Southeast Asia Nuclear Weapons-Free Zone Treaty (SEANWFZ).
6. In an effort to implement the Declaration of Conduct (DOC) of Parties in the South China Sea, the convening of the 4th Meeting of the ASEAN-China Joint Working Group on the Implementation of the DOC in April 2010 in Ha Noi marked the resumption of the formal discussion/meeting between ASEAN and China on the Implementation of the DOC since May 2006. ASEAN and China agreed to continue their consultations on this matter. At the 13th ASEAN-China Summit, the Leaders reaffirmed their commitment to fully and effectively implement the DOC and work towards the eventual adoption, on the basis of consensus, of a code of conduct in the South China Sea, to further contribute to peace, stability and cooperation in the region. The Leaders welcomed the progress made in this regard, including the convening of the 4th Meeting of the ASEAN-China Joint Working Group, and stressed the importance of close consultation and coordination between the ASEAN Member States and China in the implementation of the DOC, including the re-convening of the ASEAN-China SOM on the DOC.
7. In the area of non-traditional security cooperation, a new MOU for Cooperation in Non-traditional Security Issues was signed in November 2009 in Siem Reap, following the expiry of the existing MOU which was signed in 2004, for a period of five years, starting from January 2010 to December 2014. ASEAN and China are now implementing the Annual Plan for 2010 as part of their effort to execute the MOU.
8. In their joint effort to eliminate the threat of illicit drugs by 2015, ASEAN and China cooperate through the ASEAN-China Cooperative Operations in Response to Dangerous Drugs (ACCORD), which was established in 2001 in Bali, Indonesia to advance regional cooperation to control and combat drug. Under ACCORD, ASEAN and China undertake four activities, namely promoting civic awareness and social responses on the dangers of drugs; reducing illicit consumption of drugs by building consensus and sharing best practices in demand reduction; strengthening the rule of law by an enhanced network of control measures; and improving cooperation in law enforcement and legislative review.
Economic Cooperation
9. Trade and economic ties between ASEAN and China have been growing rapidly over the past years, especially after the signing of the Framework Agreement on Comprehensive Economic Cooperation in November 2002 to establish the ASEAN-China Free Trade Area (ACFTA).
10. Prior to the realisation of ACFTA, three agreements were signed: a) Agreement on Trade in Goods & Dispute Settlement Mechanism, signed in November 2004 and is being implemented since July 2005; b) Agreement on Trade in Services, signed in January 2007 and entered into force on 1 July 2007; and c) ASEAN-China Investment Agreement, signed in Bangkok in August 2009, and marked the conclusion of the negotiations on the ACFTA as provided under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China. The ACFTA was realised on 1 January 2010 as almost 97% of products classified by ASEAN-6 (Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand) and China in the Normal Track have been eliminated. The CLMV countries will fully implement the ACFTA on 1 January 2015. To celebrate the realisation of the ACFTA, China hosted a Forum on China-ASEAN Free Trade Area in Nanning in January 2010.
11. According to ASEAN statistics, since the launch of the FTA in 2003, ASEAN’s trade with China has been rising at an annual average rate of 26%, resulting in the tripling of ASEAN’s trade with China, from USD 59.6 billion in 2003 to USD 196.9 billion in 2008. China’s share of ASEAN trade has also risen from 4.2% in 1995 to 11.3% in 2008. After a sharp rise in total trade from 2007 to 2008, ASEAN trade with China declined by 9.5% in 2009, from USD 196.9 billion in 2008 to USD 178.2 billion in 2009. Despite this decline, China has emerged to be ASEAN’s largest trading partner accounting for 11.6% of ASEAN’s total trade. The crisis had affected the foreign direct investment (FDI) flows from China to ASEAN with a decline of 28.4% from USD 2.1 billion in 2008 to USD 1.5 billion in 20091. At the 13th ASEAN-China Summit in October 2010 in Ha Noi, China pledged to realise two-way trade volume of USD 500 billion and new direct investment from China to USD 10 billion by 2015.
12. At the sidelines of the 13th ASEAN-China Summit in October 2010, the Economic Ministers of ASEAN and China signed the Second Protocol to Amend the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China and the Protocol to Implement the Second Package of Specific Commitments under the Agreement on Trade in Services of the Framework Agreement on Comprehensive Economic Cooperation. Work is underway to finalise the ASEAN-China Memorandum of Understanding on Customs Cooperation for possible signing in 2011.
13. To complement ASEAN’s trade with China, the ASEAN-China FTA Business Portal (BIZ Portal) was launched on 7 January 2010. The aim of the BIZ Portal is to serve as a platform for making available essential information to the business sector on the ACFTA.
14. The ASEAN-China EXPO (CAEXPO), showcasing products from ASEAN and China, is organised on an annual basis in Nanning, China since 2004. In addition, the ASEAN-China Business and Investment Summit (CABIS), which is held back-to-back with the annual CAEXPO, serves as an effective way to bring government and the private sector together to exchange views on matters affecting the economy and businesses of ASEAN Member States and China. The 7th CAEXPO was held on 20-25 October 2010 in Nanning with the theme of “ACFTA as a New Opportunity.”
15. The Memorandum of Understanding (MOU) on Establishing the ASEAN-China Centre was signed by the Foreign Ministers of ASEAN and China at the 12th ASEAN-China Summit in 2009. Pursuant to the signing of the MOU, the ASEAN-China Virtual Centre was launched at the 13th ASEAN-China Summit in October 2010, while the physical ASEAN-China Centre itself will be established in 2011 in Beijing. The Centre will serve as a one-stop information and activities centre to promote ASEAN-China cooperation on trade, investment, tourism, education and culture.
16. At the 12th ASEAN-China Summit in October 2009, ASEAN and China signed the MOU on Cooperation on Intellectual Property and the MOU on Strengthening Cooperation in the Field of Standards, Technical Regulations and Conformity Assessment which will further help promote closer cooperation in relevant fields and contribute towards greater trade and better mutual understanding in the area of intellectual property. ASEAN and China are working on the details to implement the two MOUs.
17. To promote ASEAN-China infrastructure and inter-connectivity, China announced at the 12th ASEAN-China Summit its initiative to set up a USD 15 billion credit facility, including USD 1.7 billion preferential loans, and USD 10 billion ASEAN-China Investment Cooperation Fund to finance major ASEAN-China investment cooperation projects. China pledged to increase the part of preferential loans, within USD 15 billion, from USD 1.7 billion to USD 6.7 billion. The MOU on the ASEAN-China Investment Cooperation Fund was signed on 7 January 2010 in Nanning. At the 13th ASEAN-China Summit in October 2010 in Ha Noi, the ASEAN Leaders looked forward to the further implementation of the initiatives put forth by the Chinese Premier at the 12th ASEAN-China Summit in 2009 in Thailand including the setting up of the USD 15 billion credit facility and a USD 10 billion China-ASEAN Investment Cooperation Fund and with a focus on areas of priority such as infrastructure and connectivity, particularly transport infrastructure and projects relevant to people’s livelihood, thereby helping realise the ASEAN Community by 2015, narrowing the development gap in the region, and enhance connectivity within ASEAN and between ASEAN and China.
18. Through the MOU on Transport Cooperation signed on 27 November 2004 in Vientiane, Lao PDR, ASEAN and China have promoted cooperation in the following areas: i) transport infrastructure construction; ii) transport facilitation; iii) maritime safety and security; iv) air transport; v) human resources development; and vi) information exchange. At the 9th ASEAN-China Transport Ministers (ATM+China) on 12 November 2010 in Bandar Seri Begawan, the Meeting welcomed the signing of the MOU on the ASEAN-China Maritime Consultation Mechanism (ACMCM) and concluded the ASEAN-China Air Transport Agreement (AC-ATA). The next meeting will be held in 2011 in Phnom Penh.
19. According to ASEAN statistics, in 2009, ASEAN received almost 4.5 millions arrivals from China, with growth of 13.9% compared to 2007. China was the third largest tourist source market for ASEAN. At the same time, ASEAN Member States also played important role for China as source market. In 2009, China received 5.18 million arrivals from ASEAN with 4.1 per cent increase over the previous year. At the 13th ASEAN-China Summit in October 2010 in Ha Noi, China pledged to realise two-way tourist arrivals to 15 million by 2015.
20. An MOU between the ASEAN Secretariat and the Ministry of Agriculture of the People’s Republic of China on Agricultural Cooperation was signed at the sidelines of the 10th ASEAN-China Summit in Cebu in January 2007 following the expiry of the previous MOU at the end of 2006. The new MOU covers the period 2007-2011. At the 13th ASEAN-China Summit in October 2010 in Ha Noi, China pledged to set up 20 trans-boundary animal epidemic monitoring systems, three agricultural technique demonstration centres and 20 trial stations and demonstration bases of improved crop varieties in ASEAN countries by 2015.
21. In the areas of Information and Communications Technology (ICT), the Plan of Action to implement the Beijing Declaration on ASEAN-China ICT Cooperative Partnership for Common Development (2007-2012), which was signed on 14 January 2007, has provided good direction and strong commitment for wide ranging cooperation in ICT. The 2009-2010 ASEAN-China ICT Work Plan was adopted at the 4th ASEAN-China Telecommunications and IT Ministers Meeting in October 2009 in Lao PDR.
22. China continues to support ASEAN’s effort to narrow the development gap through the implementation of projects/programmes under the Initiative for ASEAN Integration (IAI) and other sub-regional economic growth areas such as the ASEAN-Mekong Basin Development Cooperation (AMBDC) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
Functional Cooperation
23. On functional cooperation, a number of activities have been carried out in the areas of public health, science and technology, education, culture, labour and social security, local government and people-to-people exchanges, environment, media, youth, social development and poverty reduction.
24. With the MOU on Cultural Cooperation signed in August 2005 in Bangkok, both sides agree to promote exchanges and cooperation in the fields of culture, both tangible and intangible, in accordance with their respective domestic laws, regulation, policies, administrative guidelines and procedures.
25. The ASEAN-China MOU on Information and Media Cooperation was signed on 16 October 2008 at the 1st Meeting of ASEAN-China Ministers Responsible for Information in Nanning, China. The MOU is aimed at enhancing and promoting cooperation and exchanges in the fields of information and media through human resource development, media exchanges and co-productions as well as establish an ASEAN-China Information and Media Network.
26. ASEAN and China attach great importance to strengthen youth exchanges and cooperation. The Ministers responsible for Youth of ASEAN and China signed the Beijing Declaration on ASEAN-China Cooperation on Youth in September 2004 in Beijing. The Declaration serves as a blue print for fostering partnership between ASEAN and China for peace and prosperity. With a view to strengthening cooperation in the area of youth, a series of activities have been organised since 2004. At the 13th ASEAN-China Summit in October 2010 in Ha Noi, China pledged to offer 10,000 government scholarships to ASEAN Member States, and invite 10,000 young teachers, students and scholars from ASEAN Member States within the next ten years.
27. Cooperation in public health is deepening. The 3rd ASEAN-China Health Ministers Meeting on 23 July 2010 in Singapore agreed to deepen cooperation in traditional medicine, the implementation of the Millennium Development Goals (MDG), prevention of communicable and non-communicable diseases, health policy development with specific focus on primary health care, maternal and child health, and HIV and AIDS, management of emergency services, and establishment of an ASEAN Risk Communication Resource Centre.