The Good Neighbors

By Ding Ying

China’s diplomatic policy aims to strengthen relationships with ASEAN member nations

GOOD-NEIGHBORING POLICY: Chinese President Xi Jinping detailing China’s ASEAN policy in a speech in Jakarta on October 3

Chinese President Xi Jinping set out on another round of overseas state visits on October 2-8, marking the fourth such tour since his inauguration in March, consisting of stops in Indonesia and Malaysia, as well as an APEC summit meeting held on the Indonesian island of Bali. It was Xi’s first visit to the two countries, both members of the Association of Southeast Asian Nations (ASEAN).

His visits not only promoted relations and cooperation between China and the two countries, but also sent a strong message about China’s aims to strengthen relations with ASEAN nations,an inseparable part of China’s diplomatic policy.

President Xi’s visit to Indonesia and Malaysia saw a number of agreements signed and relations between China and the two countries reinforced as a result.Qu Xing, President of the China Institute of International Studies(CIIS) commented that President Xi’s visits successfully enhanced bilateral trust with the two ASEAN states and was a clear demonstration of China’s good-neighbor policy. Qu added that the trip was an important step in carrying out China’s strategy of all-round diplomacy.

Zhang Yunling,a researcher at the Chinese Academy of Social Sciences (CASS),believes relations with the two ASEAN states are important to China, and that Xi’s visits to them bring China and the ASEAN countries closer.

In a joint statement, Xi and his Indonesian counterpart Susilo Bambang Yudhoyono agreed to take bilateral ties to a new level of comprehensive strategic partnership.The two countries vowed to enhance their cooperation in areas such as infrastructure,manufacturing, agriculture, investment and finance. According to the statement, China and Indonesia plan to reach new levels of growth and increase bilateral trade to $80 billion by 2015. China is now Indonesia’s second largest trading partner, with bilateral trade reaching $66.2 billion last year, four times higher than it was in 2005. Trade between the two countries in the first half of 2013 reached $33.84 billion, up 4.6 percent from the same period last year. For three years consecutively, Indonesia has been China’s largest market for contractors in Southeast Asia.

In addition, the two countries agreed to encourage the active participation of Chinese enterprises in the construction of Indonesia’s six major economic corridors. Recognizing the importance and potential benefits of deeper industrial cooperation, both countries expressed support for and welcomed the establishment of the planned Indonesia-China Integrated Industrial Parks to be built by Chinese enterprises in Indonesia. Both countries have also made remarkable progress toward further cooperation in fields such as science and technology,education, culture, defense, and aerospace. The two countries also promised to strengthen their cooperation in regards to natural resources such as oil, natural gas and new energy, forging a long-term and reliable energy cooperation partnership. To deepen fiscal cooperation, they vowed to extend a 100-billion-yuan (about $16.3 billion) bilateral currency exchange agreement with the possibility of expanding the program further.

The two countries agreed to strengthen communication and coordination through defense consultations and dialogues, in order to deepen China-Indonesia and China-ASEAN security cooperation. The two sides also vow to beef up exchanges and cooperation in fighting cross-border crime and terrorism as well as further disaster prevention and relief assistance.

Qu commented that the reinforcement of this bilateral relationship will open a window through which cooperation can be extended, something that is important for both sides, as China and Indonesia are both influential in the region.

Strengthening China-ASEAN Ties

Chinese President Xi Jinping confirmed China’s desire to build closer relationships with all ASEAN members. He made the statements when addressing the Indonesian Parliament on October 3 in Jakarta, where he made a five-point proposal:

◆ Both sides should build and develop cooperation with one another.China is committed to a sincere and friendly relationship with ASEAN countries and enhancing mutual political and strategic trust. China will continue to support ASEAN countries in building up their strength and in the process to construct a stronger ASEAN community that will play a central role in regional cooperation.

◆ China and ASEAN countries should work together toward mutually beneficial cooperation. China is ready to open itself up further to ASEAN countries so as to enable ASEAN members to benefit more from its development.

◆ Both sides should stand together and assist each other, championing the new comprehensive security strategy, promoting common security and cooperative security, which will uphold regional peace and stability.

◆ China and ASEAN countries should enhance mutual understanding and friendship to increase social support for bilateral ties. China is ready to send more volunteers to ASEAN countries to support their cultural, educational and medical development.

◆ China and ASEAN members should adhere to openness and inclusiveness. The two sides should welcome countries from outside the region to have a constructive role in regional development and stability.

(Source: Xinhua News Agency)

Malaysia established diplomatic relations with China in 1974, the first among the ASEAN member countries to do so. During Xi’s visit to Malaysia, the two sides agreed to upgrade their relationship to a comprehensive strategic cooperative partnership, and signed a series of agreements aimed at strengthening bilateral ties. The two nations also discussed further development of China’s relations with ASEAN member countries and exchanged views on other major regional and international issues.

Qu believes this upgrading of China and Malaysia’s relationship is influential in promoting good relationships between China and the rest of the region. “The China-Malaysia relationship has gone through rapid development in recent years, and bilateral cooperation has become both comprehensive and mature as a result,”he added.

China has been Malaysia’s largest trading partner for the last four years, and Malaysia has been China’s largest trading partner among the ASEAN member nations for five years in a row. Two-way trade totaled $94.8 billion last year and is expected to hit a record high of $100 billion this year.

Large-scale joint projects such as the Qinzhou Industrial Park in southwest China and the Kuantan Industrial Park in Malaysia have set a precedent for establishing similar joint venture industrial parks between China and other nations. China and Malaysia also enjoy ample contributions to one another’s tourism industries, with China now being the largest source of travellers to Malaysia.

While attending the opening of the Fifth World Chinese Economic Forum in Kuala Lumpur on October 4, Wan Jifei, Chairman of the China Council for Promotion of International Trade, said that the world economy is undergoing rebalancing and restructuring across different economies so as to sustain growth.The Chinese economy has been a stabilizer during the global economic recovery. In the next five years, China’s imports will exceed $10 trillion and its outward investment will total $500 billion, which will provide economic vigor to the rest of the world. China’s economic restructuring, after 30 years of high-speed growth, is necessary and will have more potential after the process is finished.

China needs the region surrounding it to be stable and cooperative in order to continue its development. This makes for one reason that the ASEAN is important to China, Ruan Zongze,Vice President of CIIS, pointed out.

Chinese President Xi Jinping outlined China’s ASEAN policy in his speech at the Indonesian Parliament on October 3. China-ASEAN relations are closely linked to relations between ASEAN member states, according the Chinese President, who urged both sides to bring out their respective strengths and realize diversity,harmony, inclusiveness and common progress.Xi emphasized that China is fully committed to a path of peaceful development. A stronger China will present development opportunities,rather than posing a threat, to both Asia and the world.

“President Xi’s speech conveyed that China is a partner that will cooperate,” said Ruan,adding that China showed a strong desire to promote mutually beneficial cooperation with ASEAN countries. He pointed out that China and the ASEAN members are economies that have maintained continuous economic growth in recent years. Now both economies are at a historic junction in their development: China is going through its economic transformation,while the ASEAN nations are at a crucial period of integration.

Chinese observers believe that disputes between China and ASEAN members will not stop increased cooperation. During his visits,President Xi stressed that differences and disputes should be handled through dialogue and friendly consultation in the interest of preserving friendly ties and regional stability.

In a joint statement titled The Future Direction of China-Indonesia Comprehensive Strategic Partnership, China and Indonesia agreed that it is the common responsibility of all countries in the region to maintain peace and stability in the South China Sea. The document urged China, Indonesia and other ASEAN countries to work together to implement the Declaration on the Conduct of Parties in the South China Sea (DOC), signed in Phnom Penh in November 2002, to enhance mutual trust,promote cooperation, and ensure the region remains stable. The two sides also agreed to work toward the adoption of a code of conduct for the South China Sea in line with the principles and spirit of the DOC.

Disputes will not be an obstacle in China-ASEAN ties, said Zhang Yunling from the CASS. The way disputes have been dealt with proves that China-ASEAN relations are continuing to mature. ■