[asia-apec 1677] Asean and China

[Aaron James]

Asean basks in new relationship with China
By Joe Leahy in Singapore
Published: November 26 2000 20:03GMT | Last Updated: November 27 2000 05:31GMT

In summing up the weekend's summit of regional leaders, Goh Chok Tong, 
Singapore's prime minister, described a startling new vision for ties 
between south-east Asia and China.
"In future you can perhaps use a Ferrari to speed all the way from 
Singapore to Kunming [in south-western China]. That's the kind of 
integration we're talking about," he said.
There would also be co-operation in areas ranging from trade to the 
internet and initiatives on controlling the spread of Aids.
While clearly many years, if not decades, away, talk of such a future does 
reveal one thing; that the once distant relations between China and the 10 
members of the Association of South East Asian Nations (Asean) are back on 
a faster track.
Taking advantage of domestic disarray among Washington's main allies in the 
region, along with disillusionment on the part of some Asian leaders with 
the pace and tone of world trade talks, Beijing is slowly but skilfully 
broadening its influence in the region, analysts say.
The process went a step further at the weekend meeting. Known as 
"Asean-plus-three", the summit brought together the members of Asean - 
Singapore, Malaysia, the Philippines, Vietnam, Cambodia, Brunei, Indonesia, 
Thailand, Laos, and Burma - and their giant northern neighbours, China, 
Japan and South Korea.
Aside from the usual array of initiatives, ranging from co-operation on 
information technology, education and infrastructure projects, the leaders 
agreed to study what Mr Goh called two big ideas - the creation of an east 
Asia summit and a regional free trade area. Alongside these moves China 
presented its own proposal for a trade zone between itself and Asean.
The ideas are still largely symbolic, analysts say. Asean is preoccupied 
with implementing its own trade arrangement while China is preparing for 
entry to the World Trade Organisation, expected next year. However, the 
initiatives do send a strong political statement to the west.
The proposals reveal a desire among the region's more insular nations to 
develop a sphere of influence of their own, free of US influence, says Carl 
Thayer of the Asia-Pacific Centre for Security Studies, in Honolulu. 
Malaysia, in particular, has been critical of US efforts to impose such 
issues as the environment and labour on existing trade groupings.
Mr Goh denies this is the case, saying he would not support an attempt to 
block out the US.
For Asean, the game is a double-edged sword. Members are well aware they 
need to strengthen integration among themselves before entering any larger 
organisation. "Asean is not sufficiently a unity to mix it with the big 
boys," says Michael Leifer, of the London School of Economics.
If this is true, it may be some time before Singaporean Ferraris reach Kunming


BANGKOK POST SUNDAY, NOVEMBER 26, 2000
BEIJING PITCHES MASSIVE MARKED
singaporeu AFP

China yesterday proposed a free trade zone with Asean in a market of 1.7 
billion consumers as Southeast Asia ended its annual summit pushing a 
message of regional integration. The initiative for integration would be 
the backbone of Asean, Singapore Prime Minister Goh Chok Tong said, toning 
down the near-term prospect of Asean evolving into a powerful East Asian 
political and free trade bloc. He also singled out the need forAsean to 
develop its plus-three relationship, as dialogue partners China, Japan and 
South Korea offered the region nearly US$200 million in grants and loans.

The evolution of Asean "is not going to happen immediately. It's something 
which requires further study, but I can sense [it will] evolve into an East 
Asian community." Mr Goh defended Singapore's move to forge free trade 
agreements outside Asean saying they helped draw attention to the Asean 
region.  Chinese Premier Zhu Rongji raised the likelihood of a China-Asean 
free trade zone as a means to strengthen trade and investment links.It 
would cover a market area of 1.7 billion people, comprising China's 1.2 
billion population and the 500 million inhabitants of Asean's 10 member 
countries.

"It might be advisable in the long run for China and Asean countries. to 
explore the establishment of a free trade relationship between them," Mr 
Zhu said."With China's membership in the WTO [World Trade Organisation] in 
sight and the Asean free trade area by and large established in 2002, there 
is a good opportunity for us to enhance our co-operation." Japanese Prime 
Minister Yoshiro Mori told Asean leaders to firm up existing ties with its 
dialogue partners, and said Japan was committed to strengthening the 
relationship.

"Japan regards Asean as a partner for the peace and prosperity of East 
Asia. I intend to make every effort for our cooperative relations," he said.
Mr Mori announced the so-called "Mori e-action plan," involving $15 
billion, would be introduced to enable Asean to meet the challenges of 
globalisation and information technology.

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