In the heart of Jakarta, Indonesia, the curtains came down on the 43rd Association of Southeast Asian Nations (ASEAN) Summit. Aptly themed “ASEAN Matters: Epicentrum of Growth,” the summit saw a flurry of progressive developments that have set the stage for the next era of Southeast Asian integration and collaboration, particularly with China.
Deepening Ties Between ASEAN and China
ASEAN’s Secretary-General, Kao Kim Hourn, remarked on the significance of this cooperation, emphasizing that deepened ASEAN-China collaboration would yield benefits for citizens on both sides. This sentiment underscored a common theme throughout the Summit, which was the need for strengthened ties and cooperation across various sectors.
Paving the Way for Economic Integration
One of the highlights of the Summit was the address at the 26th China-ASEAN Summit by Chinese Premier Li Qiang. He articulated the necessity of bolstering connectivity between China and ASEAN nations. This involves further cooperation on industrial and supply chains, aiming to wrap up the negotiations on the China-ASEAN Free Trade Agreement (ACFTA) 3.0 by 2024, and propelling regional economic amalgamation.
In this context, the recent development of the Regional Comprehensive Economic Partnership (RCEP) becoming fully operational in June was heralded as a significant step forward. The RCEP, Premier Li mentioned, has opened the doors to novel avenues for regional economic integration.
But what does this mean for the region? As Premier Li elucidated, “We need to further unlock the agreement’s potential, enhancing the free movement of factors, and scaling up our trade and investment endeavors. The ultimate goal? To foster a comprehensive, mutually advantageous, and top-tier economic relationship, converging towards a more inclusive regional market pulsating with vigor.”
Additionally, the agenda to expedite the ASEAN-China Free Trade Area 3.0 Upgrade Negotiations was discussed. China aims to wrap up these talks by 2024, as outlined in their list of cooperation initiatives for the ASEAN-linked summits.
The potential benefits of the Version-3.0 China-ASEAN FTA cannot be overstated. Shi Zhongjun, the ASEAN-China Center’s secretary-general, accentuated the advantages, suggesting that such agreements would have a direct, positive impact on local populations. However, he also expressed concerns over unilateralist, protectionist policies embraced by some non-regional nations affecting the Asia-Pacific region’s cooperation dynamics.
Strengthening the Belt and Road Initiative
Another key segment of the summit was the unanimous declaration on the Belt and Road Initiative (BRI) and the ASEAN Perspective on the Indo-Pacific. This statement reinforces the mutual benefits to be derived from cooperation between the two.
Premier Li welcomed ASEAN nations to actively partake in the upcoming third Belt and Road Forum for International Cooperation. The fruits of the BRI collaboration are evident. For instance, the China-Laos railway data from China Railway reveals a total of 20.09 million passenger trips as of mid-April. Furthermore, the Sihanoukville Special Economic Zone in Cambodia, a cornerstone BRI project, now stands as Cambodia’s paramount industrial region, housing up to 175 manufacturing units.
Tangible Outcomes from the Summit
The China-ASEAN Summit wasn’t just about grand visions; it was also about concrete action. Several key outcome documents got the green light, covering a range of areas from agriculture to technology. This includes:
- A joint proclamation on augmenting agricultural synergy between China and ASEAN.
- An action roadmap for China-ASEAN green agricultural development spanning 2023-2027.
- A mutual commitment to bolster bilateral e-commerce endeavors.
- A novel initiative geared towards driving a China-ASEAN tech innovation boost program.
Trade statistics further underscore the strengthening relationship. In 2022, trade volumes between China and ASEAN soared to $975.3 billion, a robust 11.2% growth year-over-year, and a whopping 120% surge since 2013. Cumulative investments by the end of July crossed $380 billion, with China establishing over 6,500 direct-investment enterprises within ASEAN.
And if that wasn’t impressive enough, the last decade witnessed ASEAN leapfrogging the European Union and the U.S. to emerge as China’s premier trading ally in 2020.
Djauhari Oratmangun, Indonesia’s ambassador to China, painted a bullish picture for the future: “Looking ahead, I foresee ASEAN-China bilateral trade tripling in the ensuing two decades, with investments trending upwards in tandem.”
In Conclusion
The 43rd ASEAN Summit in Jakarta was not just a gathering; it was a manifestation of the region’s aspirations, potential, and collective will to shape a shared, prosperous future. The world, undoubtedly, will watch closely as these plans come to fruition.
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