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The economic cooperation between China and the Association of Southeast Asian Nations (ASEAN) benefits China and all ASEAN nations, said an Indonesian official said in Jakarta Wednesday, one month after China and six ASEAN nations carried out mutual tariff cuts.
In an interview with Xinhua, the Indonesian Foreign Ministry's Director General for ASEAN Cooperation Marty Natalegawa said the ASEAN-China cooperation would positively affect the cooperation between the ASEAN and three of it's neighbors -- China, Japan and South Korea -- known as the ASEAN+3.
Indonesia sees China's progress as an opportunity, he added.
"It is a first class cooperation and it is very good. When we establish a cooperation between the ASEAN and China, the impact spreads not only to the (ASEAN member) countries, but also to East Asia, and even the whole world," he said.
"China cannot be ignored in global affairs. We do not see China's growth as a problem, but as an opportunity, due to the huge size and capability of the country," he said
As China's economy keeps growing, its cooperation with the ASEAN could strengthen the roles of both the region and China in the international community, he added.
The director stressed that the rapid development of China is not an obstacle for ASEAN countries, saying there is no possibility that China could dominate others.
"A country's capability to influence other countries does not depend on its size and economy, but the quality of its diplomacy," he said.
"China, Japan and South Korea are powerful countries and have strong economies. However, when we talk about the ASEAN+3 cooperation or the East Asian summit, they still need the ASEAN as a driving force," Natalegawa said.
China has also directly contributed to alleviating poverty in several ASEAN countries, he said.
China has made joint efforts with other ASEAN nations to narrow the gap in economic development with Vietnam, the Laos, Cambodia, and Myanmar, Natalegawa added.
Sofyan Wanandi, chairman of the National Economic Recovery Committee of the Indonesian Chambers of Commerce and Trade, also told Xinhua on Wednesday that the relationship between the ASEAN and China would be of mutual benefit, helping both sides efficiently reach their goals.
"I think this is a good relation, the economic ties are very important because they are mutually beneficial," said Sofyan.
China and ASEAN countries "help each other in developing their own economies," he added.
China intends to increase its openness and deepen its cooperation with other countries. This would benefit the region as a whole, Sofyan said.
As there are wide gaps in the economic development of ASEAN member countries, they each have their relations with and interests in China, he said.
Indonesia, for example, is rich in natural resources. Because of this, it is now attracting Chinese investment in the sectors of mining, palm oil, infrastructure and energy, Sofyan said.
During his visit to China in July, Indonesian President Susilo Bambang Yudhoyono made a commitment to attract more investment from China. "This (increased investment) will be mutually beneficial for Indonesia and China," Sofyan said.
The large number of visitors from China also represents a considerable amount of tourist revenue for ASEAN countries, he added.
On market issues, the Indonesian Foreign Affairs Ministry's ASEAN director of economic cooperation, Bambang Guritno, mentioned that the flooding of competitive products from a certain country could trigger other countries to bolster their product competitiveness or to embrace the country in the investment sector.
Chen Dajiang, chairman of the Indonesian-Chinese Entrepreneur Association told Xinhua on Wednesday that China could extend its relations with ASEAN countries by establishing joint ventures overseas, which would tap into both sides' potential.
"We need China's investment and technology, while China needs our labor and production base," said Chen.
If both sides could meet each other's demands, it would create a win-win situation, he added.
China could help ASEAN countries develop their economies without competing with them in various sectors, he said.
When both sides become integrated more closely, a huge regional economy might emerge, he explained.
According to an agreement signed by China and ASEAN nations last November, China, Brunei, Malaysia, Indonesia, Myanmar, Singapore and Thailand began to provide mutual tariff cuts on 7,455 kinds of commodities as of July 20.
By 2010, China and six ASEAN member nations -- namely Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand -- will impose zero tariffs on most normal products, while China and the other four ASEAN members -- Cambodia, Laos, Myanmar and Vietnam --will do the same in 2015 when free trade between China and all ASEAN nations would begin.
The Sino-ASEAN Free Trade Area has a combined population of 1.7 billion and US$2 trillion in gross domestic product (GDP), plus US$1.2 trillion in trade terms. In monetary terms, it will become the third largest global trading region after the European Union and the North American Free Trade Zone.
China has already signed a zero-tariff agreement on fruit with Thailand, implemented as of last year.
China now mainly imports electronic products, crude and liquefied petroleum and gas, and vegetable oil from ASEAN countries, and exports electronic and machinery products, textiles and garments, processed oil and cereals to the ASEAN.
The trade volume between China and the ASEAN reached US$105.9 billion last year, a rise of 35 percent from a year ago. The ASEAN has been China's fifth largest trade partner for 12 consecutive years.
China's imports from the ASEAN went up by 28 percent on average in the past five years, four percentage points higher than the growth rate for China's global imports.
(Xinhua News Agency August 26, 2005)
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