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Exploiting its location on the doorstep of Southeast Asia, south China's Guangxi Zhuang Autonomous Region is working to further its trade and economic engagement with ASEAN (Association of Southeast Asian Nations) member states.

 

"The autonomous region enjoys every advantage for closer economic cooperation and trade ties with Southeast Asian countries," said Li Wenjie, deputy director-general of the autonomous region's Commerce Department. "The local government has been taking measures to make good use of these advantages."

 

He noted the autonomous region's government is encouraging firms in Guangxi to enter industries such as energy and resource development, agriculture, fisheries, aquaculture, animal husbandry and manufacturing, as well as engineering projects in Southeast Asian countries.

 

Bordering Vietnam on both sea and land, Guangxi aims to partner first with that neighbor on a wide range of products, resources and expertise, Li said.

 

The autonomous region also hopes to forge closer economic ties with Malaysia and the Philippines in agricultural technology and with Brunei in prawn cultivation, he said.

 

He said that the autonomous region is making efforts to improve the investment climate by enhancing government efficiency, simplifying official procedures for ASEAN businesses and expanding infrastructure.

 

And the only "electronic port" in south China designed to streamline customs procedures has opened in Pingxiang, an important port for commerce with Vietnam.

 

The official is optimistic about future trade.

 

"Both sides realize the significance of closer cooperation," he said. "And Guangxi is doing its bit to initiate the development of a big economic zone on the Beibu Gulf to improve traffic infrastructure of the Nanning-Singapore economic belt, which will pave way for fortified China-ASEAN economic ties."

 

ASEAN member states have become the second most important investment resource for Guangxi, following only Hong Kong, with contracts totaling US$1.37 billion and investment of US$740 million in 2006.

 

Both China and ASEAN members have been promoting bilateral trade, in part through the China-ASEAN Free Trade Zone under which some 7,000 categories of products will enjoy tariff reductions or even exemption.

 

The official added that there is also enormous potential for greater economic engagement with Singapore, Indonesia, Thailand and the Philippines.

 

Guangxi plans to import more energy and mineral resources from ASEAN members while boosting exports of finished products.

 

Official statistics indicate that Guangxi's foreign trade with the ASEAN members was worth US$1.82 billion in 2006, an increase of 49.1 percent from 2005.

 

Its exports to the ASEAN members reached US$980 million in 2006, up 18.5 percent from 2005, while its imports from the ASEAN members surged 113.4 percent to US$840 million.

 

(China Daily January 20, 2007)