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By Fu Xiaoqiang

The 14th Summit of the South Asian Association of Regional Cooperation (SAARC), which opens today in New Delhi, is considered a milestone in the regional organization's history. It encompasses the addition of new member Afghanistan and the first ever participation of five observer parties China, Japan, the United States, the Republic of Korea and the European Union.

They are joining SAARC member nations India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and Maldives at the 14th summit.

The summit is seen as a move toward deepening the development of the long-standing cooperative and mutually beneficial relationship between China and South Asia.

The addition of the five observers means profound changes are taking place in the SAARC organizational structure and operational pattern. It is beginning to emerge as an important group within Asia's multilateral dynamics and regional cooperation.

This will no doubt help raise the collective status of South Asian nations in international politics and economics.

Compared with the neighboring Association of Southeast Asian Nations (ASEAN) and the Shanghai Cooperation Organization (SCO), SAARC has yet to become an efficient and highly integrated regional organization despite its more than 20-year history. It has suffered from constraints caused mostly by India-Pakistan conflicts and the fact that most of its member nations are rather underdeveloped.

Since 9/11, South Asia has become a key theater in the war against terror. At the same time, the rise of India has attracted growing attention from major powers such as the United States, Japan and EU members.

Meanwhile, calls for increased cooperation with major powers outside South Asia have arisen from within the region as the pace of globalization and regional development advances.

The combination of these internal and external factors in the past two years encouraged SAARC to take the strategic step of enlargement, accepting Afghanistan as a full member and inviting China, Japan, the US, the EU and ROK as observer parties.

China's phenomenal economic development in recent years has prompted SAARC nations to seek closer economic ties with their land-linked giant neighbor.

As an observer nation to SAARC, China will push for in-depth development of trade and other economic relations as well as political relations with South Asian countries.

In recent years, China's cooperation with Pakistan has been growing, with bilateral trade topping US$5 billion last year and expected to reach US$15 billion in five years' time. China's strategic cooperation geared toward peace and prosperity with India have been developing.

As a result, China has become India's second largest trading partner, with bilateral trade last year exceeding US$2 billion and expected to double in 2010.

China's trade with South Asian nations such as Sri Lanka, Bangladesh and Nepal has been growing steadily as well.

China has also become an important construction contractor and investor in South Asia as personnel exchanges between China and South Asian countries have increased. The trend will surely allow South Asian nations to benefit more from China's development.

As an observer nation to SAARC, China will help enhance relations and mutual promotion among the three regional organizations with which it maintains close ties, contributing to peace and development in Asia.

From Central Asia to South Asia and Southeast Asia, these three regional groups are SCO, SAARC and ASEAN.

Cooperation between SCO and ASEAN is multi-faceted and maturing. It has become an important multilateral cooperation mechanism with participation by countries inside and outside the regions involved. In contrast, SAARC, which is sandwiched between the other two organizations geographically, has been rather hesitant to embrace multilateral cooperation and free trade within the regional group.

In the past few years, the three regional organizations have shown signs of growing cooperation.

India and Pakistan have become observers in SCO, while India stepped up its "look east" policy to increase cooperation with East Asia and ASEAN under the framework of the "10+6" format the 10 ASEAN members plus the three original cooperation partners China, Japan and the Republic of Korea (ROK) and new partners India, the United States and the EU.

Without question, as an Asian giant, China occupies a significant place in SCO, the 10+6 and the East Asia multilateral mechanism.

As an observer nation to SAARC, China will facilitate contacts and interaction among the three major regional cooperation mechanisms. China's involvement can be expected to further an Asian consensus and cooperation, contributing to the realization of a harmonious Asia.

Needless to say, the expanded SAARC is faced with the challenge of adapting to a new situation and balancing relations among its own member states as well as relations with the outside world.

On the one hand, India needs to change its own thinking of viewing the region as its backyard and being nervous about major outside countries establishing close ties with other SAARC member nations.

The participation of China, Japan, the ROK, the United States and the EU as observer parties should not be seen as an indication of India's dwindling influence in South Asia. India needs to deal with SAARC development beyond its traditional geo-political outlook.

As a matter of fact, India's unparalleled status and influence in South Asia have not changed. At the same time, this doesn't mean other South Asian nations must always follow India's orders.

For decades India has been the only SAARC member state wary of participation in South Asian affairs by major powers such as China and worried that its leadership in the region would diminish as result of other major powers' presence.

But India need not worry so much. The reason for South Asian nations to establish contacts with China is economic interest rather than political consideration. China's presence in SAARC means more opportunities for India and other SAARC members.

From now on, China and India are expected to extend bilateral communication through SAARC. This prospect bodes well for the development of their bilateral ties. It is fair to say that SAARC serves China and India as a potential platform for cooperation in a multilateral setting.

On the other hand, major powers such as China, Japan and the United States should avoid ill-conceived competition in South Asia. China has no geo-political ambition of extending the reach of its power in the region or of seeking political confrontation as an observer in SAARC.

They may not share the same interest in South Asia, but China, Japan and the United States would be doing disservice to South Asian peace and stability if they attempted to undermine one another or if the US and Japan were to unite against China. That would hurt rather than help SAARC development.

All said, the harmonious development of China-SAARC relations depends on the well-coordinated teamwork of parties both inside and outside the region. Poverty still pervades South Asia; regional integration lags far behind neighboring counterparts; and levels of development vary dramatically among its member states.

China can step up consultation with India and other South Asian countries, work hard to emphasize the significance of economic and trade cooperation in the context of regional development and gradually work toward enhancement of regional security. That would help SAARC make its voice better heard in international politics and economic order.

The author is an associate researcher with the China Institute of Contemporary International Relations.

(China Daily April 3, 2007)