Asean, China must sustain economic cooperation: PM Lee
ASEAN and China must not lose sight of regional economic cooperation, Prime Minister Lee Hsien Loong said on Tuesday.
"I hope we can keep the momentum on regional integration going, even as we manage frictions that arise from time to time," PM Lee said at the opening of the 11th China-Asean Expo here. "We should keep difficult issues in perspective and not let disputes overshadow the positives of Asean-China cooperation."
Mr Lee noted that China and Asean have set bold goals for the second decade of their cooperation: an increase in two-way trade to US$500 billion by 2015 and to US$1 trillion by 2020, and an increase in mutual investments by US$150 billion by 2020.
Asean-China ties should be seen in the larger context of growing inter-dependence and integration in the Asia-Pacific region, he said, noting that much of the trade between the two is in intermediate goods which are shipped to third-country markets, especially the US and Europe. Thus, trans-Pacific trade has expanded in tandem with Asean-China trade.
"In particular, both China-US and Asean-US trade are growing," Mr Lee noted. "Asian countries are also actively promoting economic ties with one another, and with other parts of the world."
He further pointed out that Apec, which China chairs this year, will discuss how to realise a Free Trade Area of the Asia-Pacific (FTAAP) by building on the free trade agreements (FTAs) currently being negotiated. The latter includes the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership.
"An FTAAP would further integrate the global value chain in the Asia-Pacific region and promote a more efficient flow of goods, services and people," Mr Lee said.
Although the global economy is not in very robust shape, the Singapore leader noted that Asia has remained a resilient engine of growth. And this is significantly due to China's dynamism and the regional integration between China and Asean, with the Asean-China FTA playing a big role.
Mr Lee indicated that since the latter FTA was inked in 2005, trade between China and Asean has jumped nearly three times.
He expects China to grow strongly over the next decade and beyond.
"This can only be positive for our region because it will create more opportunities for win-win cooperation and greater prosperity for all," Mr Lee said.
So Singapore will support and work with China to develop the details of its initiatives to further promote Asean-China economic cooperation, according to PM Lee. Among the initiatives are upgrading the Asean-China FTA, setting up the Asian Infrastructure Investment Bank and promoting the 21st Century Maritime Silk Road.
At Tuesday's 11th China-Asean Expo opening ceremony, Pacific International Lines and PSA International each signed a memorandum of understanding (MOU) with Guangxi Beibu Gulf International Port Group. The MOUs will see further collaboration between Singapore and China in port-related activities.
Later in the day, the Singapore Business Federation inked an MOU with the China Council for the Promotion of International Trade to establish the China-Singapore Business Council and promote commercial and industrial relations between the two countries.
With additional reporting by Kelly Tay
