Talk that competition between China and ASEAN (Association of
Southeast Asian Nations) countries will hinder enhancement of
economic collaboration in East Asia is based on misunderstanding,
experts said.
The competition is for a different market and should not interfere
with cooperation among East Asian countries, said Zhou Xiaobing,
deputy director of the Institute of Asia-Pacific Studies of the
Chinese Academy of Social Sciences.
"It's very important for East Asian countries to cooperate in order
to maintain a stable and continuous development in the region,"
Zhou said.
Free trade agreements and ultimately an East Asian free trade zone
would help create solid markets, which are essential for stable and
continuous development of East Asian countries, he said.
East Asian economies, with huge production capacity, depend heavily
on expanding global demand.
Surging overseas and local demand helped pull East Asia out of the
1997 financial tumult.
While external demand is volatile, Zhou said the rapidly growing
trade among East Asian countries has stabilized local demand.
Neighbourly trade accounted for half of East Asian countries' total
foreign trade last year, a bit higher than the proportion for North
American Free Trade Agreement (NAFTA) members but lower than that
of the European Union, official statistics show.
The deputy director added that the need for stable markets underlay
Premier Zhu Rongji's call for free trade relationships with ASEAN
members at the recent 10-plus-three (the 10 ASEAN members and
China, South Korea and Japan) summit.
Past cooperation has laid down a firm foundation for free trade
relationships in the region, Zhou said.
East Asian countries have all committed to some degree of opening
to ASEAN, the Asia-Pacific Economic Cooperation or the World Trade
Organization.
An
East Asian free trade area would accelerate the mutual opening of
domestic markets, Zhou said.
But Xu Changwen, director of the department of Asia and Africa of
the Chinese Academy of International Trade and Economic
Cooperation, said that at present Japan and South Korea are better
partners for China than ASEAN countries.
Opening to Japan and South Korea would deal a blow to domestic
industries, especially the service industries such as
telecommunications and finance.
"But closer trade relationship with the two countries will also
bring along capital and technology that China needs to accomplish
its present goal of economic development," Xu told Business
Weekly.
Cooperation with ASEAN countries means more pressure but less
opportunities for domestic industries, he said.
Xu
said China and ASEAN are competitors for capital and markets rather
than complementary economies.
China and many ASEAN members are export-oriented and have similar
economic development levels.
(China Daily 12/04/2000)