News

China-ASEAN collaboration grows

By Li Yingqing and Xu Xiao (China Daily)
Updated: 2010-09-18 08:09

Delegates mark the opening of the first China-ASEAN Industrial Cooperation Conference that began yesterday in Kunming. Wu Jiachun / China Daily

The price, quality and variety of China-made machines give them a competitive edge in the ASEAN markets, said Lu Renqi, vice-president of China Machinery Industry Federation (CMIF).

Machine manufacturing should remain an important part of bilateral trade, she continued.

While China's foreign machine and equipment trade dropped nearly 14 percent last year, transactions with the ASEAN increased 9 percent.

Chinese machine and equipment makers exported more than $12 billion in products to ASEAN markets in the first half of this year, taking up more than two thirds of ASEAN trade in the sector, said Lu.

During the same period, machines and equipment accounted for more than one fifth of total trade with the ASEAN.

Indonesia and Vietnam are the two largest export destinations for Chinese machine makers, the VP noted.

But despite ASEAN trade growth, bilateral cooperation still faces a range of problems. These include a lack of knowledge about favorable China-ASEAN Free Trade Area (CAFTA) policies, price competition, trade barriers and security concerns, said Lu.

She advised holding more dialogues, increasing communication and promoting CAFTA policies.

Lu noted that CMIF will welcome local ASEAN companies to tour Chinese enterprises.

This will help them learn about China's standardization and quality certification systems, said the VP.

In its upcoming five-year plan, CMIF has made it a priority to optimize industrial structure and promote eco-friendly and energy-efficient products, Lu added.

China and Singapore

Simon Li, vice president of Singapore Manufacturers' Federation (SMF), noted that the manufacturing industry represents one fourth of his country's GDP.

With the development of CAFTA, Singapore and China should enhance cooperation in production, investment and human resources, he said.

China is Singapore's third biggest trade partner and seventh largest investment source. It generated $52.05 billion in trade revenue last year.

Some 18,000 Singapore sponsored companies have been established in China, representing an investment in excess of $44 billion.

Currently, 154 Chinese enterprises are listed on the Singapore Exchange (SGX). Their market value accounts for one third of SGX's total.

And now, Singapore has established economic cooperation agreements with seven Chinese provinces. Flagship projects in Suzhou, Tianjin, Guangzhou and Jilin are pivotal, said Li.

The SMF VP mentioned he was impressed with Kunming's flourishing economy, and hoped to promote further trade with China's medium and small-sized cities.

Furthering cooperation

Myanmar Industrial and Commercial Federation (MICF) expects to play a more active role in bilateral collaboration, said Pwint San, secretary-general of the organization.

He noted that MICF will take the following steps:

respect trade partners on an equal basis.

establish cooperation in accordance with the Agreement on the Common Effective Preferential Tariff Scheme for AFTA (CEPT) and concerning policies of CAFTA.

simplify administrative procedures.

promote development of the private sector.

attract medium and small-sized enterprises and strengthen management.

implement stimulus policies other than taxes.

integrate resources and share each other's experiences.

In addition, President of Indonesia Textile Association Ade Sudradjat Usman, Chi Wai David Lau, a representative from a Thailand trade association, and Vice-Chairman of Vietnam Chamber of Commerce and Industry Khuong Duy Doan also each gave a speech at the meeting.

(China Daily 09/18/2010 page8)