China-ASEAN Relations

Cooperation and DevelopmentVolume 1

Jianren Lu, Zuojun Fa

• Publisher: WSPC
• Year: 2018
• ISBN:
  9789813228924
• Topic: Economics
• Subtopic: International Economics
• Index: Economics

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This book is an annual publication on the relation between China and ASEAN countries. It presents comprehensive and in-depth studies on China-ASEAN cooperation and development by Chinese scholars. The book is composed of six parts. Part 1 contains the general report including the introduction of China-ASEAN cooperation, achievements and problems in politics, economy, diplomacy, security, military defense, maritime and cultural aspects. Part 2 studies the relation and cooperation between China and individual ASEAN nations, including the evaluation of each ASEAN nation's politics, economy, diplomacy, society and culture. Part 3 analyzes the building of China-ASEAN Community of Common Destiny, bilateral cooperation in the building of 21st Century Maritime Silk Road, finance and ecological environment, China-ASEAN Expo and Guangxi-ASEAN cooperation. Part 4 studies important issues of Southeast Asia, including the South China Sea disputes, the missing Malaysia Airlines MH 370, progress in the building of ASEAN Economic Community, military coup in Thailand, anti-China events in Vietnam, and general election in Indonesia. Part 5 contains short commentaries on the key events happened in some ASEAN nations. Part 6 chronicles major events in China-ASEAN cooperation, in ASEAN nations and in Guangxi-ASEAN cooperation.

--> Contents:

• Part 1: Overview:
  • Retrospect and Prospect of China–ASEAN Cooperation 2014 (Research Group)
• Part 2: China and ASEAN Countries Cooperation Reports 2014:
  • China and Thailand Cooperation Report 2014 (Yue Guining and Yue Han)
  • China and Vietnam Cooperation Report 2014 (Jin Dan, Ruan Minzhuang and Huang Changgui)
  • China and Myanmar Cooperation Report 2014 (Huang Ailian and Chen Jiancai)
  • China and Malaysia Cooperation Report 2014 (Liang Shuhong, Chen Fang, Pan Changlong, Yang Guangqi, Luo Yuanpin and Hao Mengyu)
  • China and Cambodia Cooperation Report 2014 (Liu Yapin, Zhou Wusheng and Ma Li)
  • China and Indonesia Cooperation Report 2014 (Liu Zhuguang and Ai Yuting)
  • China and Singapore Cooperation Report 2014 (Wang Juan and Yin Zixiang)
  • China and Laos Cooperation Report 2014 (Fang Jingjing)
  • China and the Philippines Cooperation Report 2014 (Miao Huixing and Wang Xinyuan)
  • China and Brunei Cooperation Report 2014 (Huang Ying, Luo Chuanyu, Huang Qin, Chen Caijian, Liu Wen, Yuan Yue and Cheng Cheng)
• Part 3: Featured Reports on China–ASEAN Cooperation 2014:
  • The Belt and Road Initiative and China–ASEAN Community of Common Destiny (Lu Jianren)
  • China–ASEAN Investment Report 2014 (Li Jianwei)
  • Analysis on China–ASEAN Cooperation on Maritime Silk Road (Pan Yong)
  • China–ASEAN Financial Cooperation Report 2014 (Fan Zuojun and Chang Yali)
  • China–ASEAN Environmental Cooperation Report 2014 (Wang Yinghui and Xiong Jianhua)
  • China–ASEAN Expo Cooperation Report 2014 (Qin Weibing, Huang Ge and Zhang Tingting)
  • Guangxi–ASEAN Cooperation Report 2014 (Qin Jianwen)
• Part 4: Evaluation and Analysis of Hotspot Issues in Southeast Asia 2014:
  • Current Situation and Future of the South China Sea Dispute (Li Hong)
  • The Development of ASEAN Economic Community 2014 (Wang Yuzhu)
• Part 5: Cross-national Studies of ASEAN Countries:
  • China–Laos High-speed Rail: Opportunities or Challenges? (Fang Jingjing)
  • Cambodia: Corruption, Democracy and Economic Development (Mao Wei)
  • Analysis on Chinese Investment Setbacks in Myanmar (Guan Yudong)
  • Why the Central Provident Fund in Singapore Aroused a Protest? (He Zheng)
  • Brunei's Islamic Law: Introduction and Comments (Luo Chuanyu)

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--> Readership: Policymakers, academics, professionals, undergraduate and graduate students interested in China-ASEAN relations. -->
Keywords:China;ASEAN;South China Sea Disputes;Malaysia Airlines MH 370;ASEAN Expo;Military Coup in Thailand;Guangxi-ASEAN CooperationReview:0

Part 1

Overview

Chapter 1

Retrospect and Prospect of China–ASEAN Cooperation 2014

Research Group^*

The year 2014 marked the beginning of the second decade of China–ASEAN strategic partnership as well as the start of a “diamond decade”, continuing from the previous “golden decade”. Under the guidance of building a “China–ASEAN community of common destiny” and “21^st Century Maritime Silk Road”, cooperation between these two sides has been expanded in areas and enriched in content. This report assesses the achievements and existing problems of China–ASEAN cooperation in 2014 and their cooperation trends in 2015 from political, economic, diplomatic, security, military, maritime and cultural perspectives.

I.Political Cooperation

After setting a good cooperation momentum in 2013, China and ASEAN further consolidated their strategic mutual trust, deepened political cooperation, and facilitated the construction of the China–ASEAN community of common destiny in 2014. The idea of building a China–ASEAN community of common destiny was a landmark of 2013 China–ASEAN political cooperation. During his visit to Indonesia in November 2013, President Xi Jinping delivered a speech in which he said that China is willing to work with ASEAN countries to build a China–ASEAN community of common destiny. In his speech, President Xi made five proposals: China and ASEAN should build trust and develop good-neighborliness; work toward win–win cooperation; stand together and assist each other; enhance mutual understanding and friendship to increase the social support for bilateral ties; stick to openness and inclusiveness. Implementing these proposals will ensure that China and ASEAN are good neighbors, friends, and partners and aid the joint building of a more closely knit China–ASEAN community of common destiny.¹ This is a major initiative put forward by the Chinese leader which redefines the China–ASEAN strategic partnership in the new era, identifies the general direction of China–ASEAN political cooperation, and places the development strategy of bilateral relations at a new historical starting point.

1.The initiative of building a China–ASEAN community of common destiny has outlined the development strategy of bilateral relations

The proposal of building a China–ASEAN community of common destiny has identified major goals for China–ASEAN political exchanges and strategic plans for promoting ties under new historical conditions. In the face of the new historical era of China–ASEAN relations, China has proposed that it is willing to work with the ASEAN countries to construct a community of common destiny. Such a proposal not only embodies the distinct characteristics of the times but also has far-reaching historical significance. The China–ASEAN community of common destiny reflects the essence of cooperation, win–win results, and peaceful development. It is also an important political proposal that conforms to the globalization trends and meets the national interests of China and ASEAN countries. It is a “top design” of China–ASEAN future roadmap that can help build sustainable China–ASEAN relations in the interests of the peoples of China and ASEAN countries.

The year 2014 was the first year for implementing the construction of China–ASEAN community of common destiny — an idea that has innovated and developed the ideology of China–ASEAN political cooperation. This initiative has provided a theoretical basis for practicing China–ASEAN strategic partnership and also served as an important way for both sides to realize the goals of good neighbors, friends, and partners. The sound cooperation and sustainable and stable development between China and ASEAN has already become a flag-bearer for regional cooperation in East Asia. China will firmly prioritize the ASEAN member countries in the country’s peripheral diplomacy and support the establishment of the ASEAN community in the political-security, economic, and socio-cultural spheres. Meanwhile, China will uphold the dominant role of the ASEAN in East Asian cooperation and expand pragmatic cooperation in all areas. Based on the “2 + 7” framework, China is willing to further the integration of interests and build a China–ASEAN community of common destiny so as to draw each other even closer. On October 13, 2014, Premier Li Keqiang emphasized in the 17^th ASEAN-China (10 + 1) Leaders’ Summit that both sides should jointly plan the development strategy of China–ASEAN relations, start the design of Plan of Action to Implement the Joint Declaration on ASEAN-China Strategic Partnership for Peace and Prosperity (2016–2020) as soon as possible, and lead the future development of China–ASEAN relations.²

2.Strengthen strategic mutual trust and consolidate and develop strategic partnership

In 2014, China and ASEAN have expanded and enriched their cooperation and conducted more frequent exchanges between high-level leaders. Also during the same year, leaders from both sides have worked to fortify their traditional friendships, deepen communications, and enhance strategic mutual trust. They have also worked continuously to strengthen China–ASEAN political mutual trust, improve cooperation mechanisms, and set strategic guidance on the cooperation direction of ASEAN and other Asia-Pacific countries. The evolution of the China–ASEAN strategic partnership from a “golden decade” to a “diamond decade” has further accomplished China’s political and diplomatic layout, enriched China–ASEAN political and diplomatic theories and practices, and cemented the political and economic foundation of strategic mutual trust. In the face of the new historical conditions, it is urgent for China and ASEAN countries to enhance strategic communications, deepen bilateral mutually beneficial cooperation, and build a China–ASEAN community of common destiny, shared interests, and responsibility.

In the 17^th China–ASEAN (10 + 1) Summit, the Chinese leader made it clear that China will always stick to the policy of mutual political trust and good neighborly relations, which was highly recognized by ASEAN leaders. In the meantime, the ASEAN countries also showed willingness to attach high importance and develop their relations with China from a strategic stance. Premier Li Keqiang pointed out that both sides should use the “dual-track” approach to address the South China Sea disputes. Based on historical facts, international laws, and Declaration on the Code of Conduct on the South China Sea (DOC), relevant parties should settle disputes via negotiations and other peaceful means. Besides, both sides should try to agree on a full code of conduct in the South China Sea as soon as possible, discuss the signing of the China–ASEAN Treaty on Good Neighborly Friendship and Cooperation, utilize senior officials’ consultations and establish a working group, discuss the building of Lancang-Mekong dialogue and cooperation mechanism, and hold foreign ministers’ meetings and senior officials’ meetings at the right time. Premier Li also stated in the 9^th East Asia Summit that China would firmly support ASEAN to build a political-security, economic, and socio-cultural community. China is willing to join regional countries in building an Asian community of shared interests, responsibility, and fate so as to elevate China–ASEAN strategic mutual trust, deepen cooperation in a comprehensive way, realize common development, and write a new chapter on China–ASEAN relations.

3.Strive to build a China–ASEAN community of common destiny

From the “golden decade” to “diamond decade”, substantial achievements have been made in China–ASEAN partnership. In this development process, China has expressed its intention to work with the ASEAN countries to build a “China–ASEAN community of common destiny” strengthen exchanges and cooperation in a comprehensive way, and establish and improve the China–ASEAN Strategic Dialogue. This reflects the strategic significance and importance of developing China–ASEAN relations. The China–ASEAN community of common destiny is a subjective undertaking of China and ASEAN. It is not only an objective result of connectivity activities between China and ASEAN, such as trade and economic cooperation and cultural exchanges, but also a must for the new “diamond decade”. China and ASEAN elevate their relations and cooperation only by establishing political mutual trust, tapping bilateral cooperation potential, and properly addressing disputes. This is an important initiative for China to consolidate the political basis of China–ASEAN strategic partnership and good-neighborly relationship. With this initiative, both sides can enrich mutual political trust and mutually beneficial cooperation and have a political fundamental guarantee for strategic partnership cooperation. In the future, China will highlight political mutual trust, always prioritize ASEAN countries in its periphery diplomacy, continue to support ASEAN to build a political-security, economic, and socio-cultural community, and support ASEAN’s dominant role in Eastern Asian cooperation. In the meantime, ASEAN countries will further deepen their strategic partnership with China and enhance exchanges and cooperation in politics, trade, and culture. Internationally, both sides will maintain close communication and coordination on key international and regional issues. China will continue to support ASEAN’s dominant role in Eastern Asian cooperation, and ASEAN will work with China to maintain peace and stability and contribute toward development in Asia and even the whole world.

China and ASEAN should start by strengthening mutual political trust, guide the direction, and promote the building of the China–ASEAN community of common destiny in a steady manner. To this end, efforts should be made in the following aspects:

First, emphasize mutual political trust to orchestrate China–ASEAN relations. Mutual political trust should be the basic guarantee for the stable and continuous development of China–ASEAN relations. The core ideas of the China–ASEAN community of common destiny should be funneled to the whole cooperation and exchange process so as to realize mutual benefits, win–win results, and common development.

Second, implement the initiative of building a China–ASEAN community of common destiny. Efforts should be made to construct a community of common interests comprising China and the ASEAN countries. By implementing “The Belt and Road Initiative”, China and the ASEAN countries should have their interests closely linked together so as to gradually realize the vision of a community of common interests. Also, both sides should continue to work toward making China–ASEAN cooperation more mutually beneficial and complementary, achieving more win–win results.

Third, strengthen joint cooperation for win–win development. To build a China–ASEAN community of common destiny is key to the new “diamond decade”. China and the ASEAN countries have tied fortunes and interests, therefore, to build a community of common destiny is the common demand which will help both sides realize common prosperity and development and promote sustained cooperation.

Fourth, try to find an entry point for both sides so that they can treat each other with candidness, get along with each other in a friendly manner, and cooperate and deliver win–win results. Differences and disputes should be settled through dialogues on an equal footing and friendly consultation.

Besides, both sides need to identify an effective way to build the community of common destiny. During their visits, both President Xi and Premier Li have highlighted the importance of ASEAN countries, such as Indonesia, Brunei, Thailand, Vietnam, and Myanmar. In addition, new breakthroughs have been identified in the political, economic, and cultural sectors. China–ASEAN relations enjoy a solid foundation and strong bond. There is enormous cooperation potential, broad prospects, and great momentum to enhance China–ASEAN relations. China is willing to be an eternal friend and build sincere cooperation with the ASEAN countries, while the ASEAN countries are willing to establish a mutual-trust and win–win relationship with China and continue to deepen pragmatic cooperation in all sectors. We fully believe that, with concerted efforts, China and ASEAN can jointly build a community of common destiny that will benefit Asia and the whole world. It is expected that China–ASEAN relations will have an even brighter future.³

II.Economic Cooperation

In 2014, China and ASEAN furthered their economic relations with expanding trade, more interdependent investment, closer relations between industries, enriched cooperation contents, and broader business cooperation.

1.China–ASEAN trade in 2014

According to the data of MOFCOM,⁴ the bilateral trade volume between China and ASEAN in 2014 reached $480.0125 billion, a year-on-year growth of 8.23%, and 4.78% higher than China’s overall foreign trade growth rate of 3.45%. The trade volume between China and ASEAN already accounted for 11.16% of China’s total foreign trade. In 2014, imports from ASEAN to China increased by 4.41% to $208.332 billion, and China’s exports to ASEAN jumped by 11.36% to $271.792 billion. Thus exports have far outperformed imports. The trade surplus was $63.52 billion, a 42.6% increase compared with last year. The reason was ASEAN’s continuous strong demand for Chinese products: first, China produces cost-effective daily necessities that can be afforded by the people of ASEAN and therefore caters to the long-term import needs of ASEAN; second, ASEAN has an increasing demand for intermediate goods which is related to the trade pattern of multinational companies. These companies import intermediate goods from China and export these goods to other regional markets after processing and assembling these goods. Due to these two factors, ASEAN imports more from China, hence resulting in a big trade surplus.

In 2014, among ASEAN countries, Malaysia, Vietnam, and Singapore had the largest trade volumes with China, whereas Myanmar, Laos, and Vietnam had the fastest trade growth rates of 146.03%, 31.87%, and 27.54%, respectively. Of particular note is Vietnam, which became the second biggest trade partner of China in 2014 among the ASEAN countries; in 2013, it was ranked fifth. Imports from China to Vietnam reached $6.3611 billion and exports from Vietnam to China were valued at $1.9905 billion, which led to a trade deficit of $4.3705 billion or 68.8% of the total trade deficit between China and ASEAN. In terms of the import volumes from China, among the ASEAN countries, the top three were Vietnam, Singapore, and Malaysia; in terms of exports, the top three were Malaysia, Thailand, and Singapore. Another highlight was the trade cooperation between China and Malaysia. In face of the sluggish global economy, the bilateral trade volume between China and Malaysia slipped a little compared with 2013 but still reached $101.975 billion, which accounted for 21.24% of the total trade volume between China and ASEAN. Malaysia has outperformed other ASEAN members to become the largest trade partner for China for seven consecutive years.

ASEAN plays a very important role in China’s foreign trade. In 2014, ASEAN as a whole was China’s third largest trade partner, second largest source of imports, and third largest export market. In fact, from 2011, ASEAN remained the biggest trade partner of China. Likewise, China is a vital trade partner for ASEAN. In 2000, the trade between China and ASEAN only accounted for 4.3% of ASEAN’s total foreign trade. But with the implementation of the China–ASEAN Free Trade Area (FTA), the percentage soared to 11.6% in 2009. Thus China surpassed EU, the US, and Japan to become the number one trade partner of ASEAN. In 2014, the share jumped to 14.9%, and China had been ASEAN’s biggest trade partner for five consecutive years (see Figure 1).

In addition, the service trade between China and ASEAN was developing rather rapidly in recent years. In 2006, the service trade was only $12.6 billion, which then soared to $163.097 billion in 2013. Now China has already become ASEAN’s fourth largest partner in service trade and ASEAN has remained China’s fourth largest partner in service trade. Among the 10 ASEAN member states, Singapore, Thailand, and Malaysia are performing well in service trade, with Singapore ranked ninth in the world in terms of service trade volumes in the year 2013.

Figure 1. China’s Share in ASEAN’s Foreign Trade

Source: WTO.

China and ASEAN are quite complementary in service trade, which has now become a key topic in the negotiations to upgrade the China–ASEAN FTA. There will be huge potential in service trade cooperation.

2.Mutual investment

According to the data from MOFCOM, by the end of 2014, the cumulative investment from Chinese enterprise to ASEAN reached $3.521 billion and the number vice versa was $9.174 billion.⁵ Singapore was the number one ASEAN investor in China. Acc...

Table of contents

• Cover Page
• Title
• Copyright
• Preface
• About the Editors
• Contents
• Part 1 Overview
• Part 2 China and ASEAN Countries Cooperation Reports 2014
• Part 3 Featured Reports on China–ASEAN Cooperation 2014
• Part 4 Evaluation and Analysis of Hotspot Issues in Southeast Asia 2014
• Part 5 Cross-national Studies of ASEAN Countries
• Appendix: Statistical Materials
• Postscript
• Index