Chapter 1
2030 Vision for ASEANâChina Strategic Partnership: Bruneiâs Perspective
NACT Brunei Darussalam
I. | Assessment of ASEANâChina Strategic Partnership |
Over the years, China has become one of ASEANâs most substantive Dialogue Partners. The year 2003 marked a pivotal year with the signing of the Joint Declaration of the Heads of State/Government of ASEAN and the Peopleâs Republic of China on Strategic Partnership for Peace and Prosperity at the Seventh ASEANâChina Summit in October, which elevated the relationship to a higher plane. That day, China became the first Dialogue Partner to establish a strategic partnership with ASEAN, and during the same year, it was the first country outside Southeast Asia to accede to the Treaty of Amity and Cooperation in Southeast Asia (TAC). Prior to these milestones, it was the first Dialogue Partner to conclude a Free Trade Agreement (FTA) with ASEAN in 2002. All these signal Chinaâs strong support for ASEAN since it was accorded full Dialogue Partner status in 1996.
The relationship has grown rapidly in a wide variety of politicalâsecurity, economic, and socio-cultural areas, especially through the effective implementation of the Plan of Actions to implement the above-mentioned Joint Declaration.
On the politicalâsecurity front, ASEAN and China continue to strengthen their Strategic Partnership through sustained and frequent dialogue at all levels such as the Summit, Post Ministerial Conference and Senior Officialsâ Meetings. Moreover, Chinaâs support for ASEAN Centrality is evident through ASEAN-led mechanisms such as the ASEAN Regional Forum (ARF) â which China is a founding participant of â ASEAN Plus Three (APT), East Asia Summit (EAS), ASEAN Defense Ministersâ Meeting Plus (ADMM Plus) and the Expanded ASEAN Maritime Forum (EAMF). All these frequent exchanges have helped deepen mutual trust and understanding among ASEAN Member States and China, which has made a positive impact on the maintenance of peace, stability, and prosperity in the region.
Although ASEANâChina relations have often been overshadowed in the media by the situation in the South China Sea, the relationship is much broader than any one issue. Despite the ongoing developments, ASEAN and China have consistently reaffirmed the full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea (DOC). As a result of recent meetings, ASEAN and China have made steady progress, including the successful testing and operationalization of the Hotline Communications among Senior Officials of the Ministries of Foreign Affairs of China and ASEAN Member States in Response to Maritime Emergencies and their defense officials are currently exploring ways to operationalize the adopted Joint Statement on the Application of the Code of Unplanned Encounters at Sea (CUES) in the South China Sea. This demonstrates the benefits of peaceful dialogue and consultations, to create conditions conducive for the maintenance of peace and stability.
Furthermore, thanks to goodwill and the confidence building measures that are in place, ASEAN and China were able to adopt the Framework of the Code of Conduct in the South China Sea (COC) in August 2017 and officially launched negotiations on the COC a few months later during the 20th ASEANâChina Summit. These came in pursuit of the common goal of regional peace and stability, which are essential prerequisites for continued economic growth.
Despite uncertainty in the global economy, economic cooperation between ASEAN and China has continued to thrive. China has maintained its position as ASEANâs largest trading partner since 2009, with merchandise trade reaching US$368 billion in 2016 (16.5 percent of ASEANâs total trade), and continued to be the regional associationâs fourth-largest external source of foreign direct investment, with flows amounting to US$9.2 billion in 2016. This can be attributed to Chinaâs huge market potential combined with ASEANâs demographic, where more than half is under the age of 30. This profile is reflected in an appetite among others, who embrace new technology to drive economic activity. Moreover, countries with a growing, productive workforce are more likely to see strong economic growth.
To further bolster economic cooperation between ASEAN and China, the annual trade fair held in Nanning since 2004, known as the ChinaâASEAN Expo (CAEXPO), was organized. It has paved the way for enterprises from ASEAN and China to rub shoulders with each other, explore business opportunities and further promote the ASEANâChina FTA. Brunei Darussalam had the opportunity to work with China as the Country of Honour twice (2007 and 2017).
With the aim of renewing existing areas of cooperation and to explore new opportunities for collaboration, ASEAN and China have been active in designating an annual theme for the past few years. The year 2016 saw the Year of Educational Exchanges, which saw a series of activities implemented to mark the year, including the Ninth ASEANâChina Education Cooperation Week and the First ASEANâChina Youth Education Forum. Last year was the Year of Tourism, which led to the achievement of the 30 million tourist arrivals (both ways) target â reached 4 years ahead of schedule.
For Brunei Darussalam, a study conducted by the Centre for Strategic and Policy Studies (CSPS) last year showed an estimated BND6.4 million generated from the Chinese market in 2016, with an average stay of 2.8 days. The increase in Chinese tourist arrivals can help achieve the Ministry of Primary Resource and Tourismâs target of 450,000 tourists by 2020. Tourism and people-to-people exchanges do not only have a positive impact on the economy, but it also provides social benefits such as enhancing mutual understanding and appreciation of the diverse cultures of ASEAN and China.
II. | Prospects and Proposed Goals for the 2030 Vision for ASEANâChina Strategic Partnership |
The current breadth and depth of ASEANâChina cooperation encompasses 11 priority areas, namely agriculture, information and communication technology, human resource development, Mekong Basin Development, investment, energy, transport, culture, public health, tourism, and environment. However, there are still potential and much scope to further expand as well as deepen the relationship.
Politicalâsecurity
In view that developments in the South China Sea will continue to attract the attention of international observers, ASEAN and China must remain committed to, among others, maintain peace and stability in the area, respect for freedom of navigation in and over-flight above the South China Sea and resolve disputes by peaceful means, in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
To further foster mutual trust and understanding, ASEAN and China should build on the positive momentum achieved last year and work together to create more practical measures such as the ASEANâChina Maritime Exercise, a proposal that was first raised during the ASEANâChina Defense Ministersâ Informal Meeting in May 2016.
Economic cooperation
With regard to economic cooperation, the Leaders mandated the upgrade of the ASEANâChina FTA Protocol (Protocol to Amend the Framework Agreement on Comprehensive Economic Co-operation and Certain Agreements thereunder between ASEAN and the Peopleâs Republic of China) back in November 2015. In this regard, ASEAN and China must continue to encourage the remaining ASEAN Member States to ratify the upgrade as it is expected for it to bring both sides closer to realizing the twin goals of two-way trade and investment of US$1 trillion and US$150 billion, respectively, by 2020.
Against the backdrop of growing protectionist and anti-globalization sentiments in some parts of the world, ASEAN and China must stand firm against this, and reaffirm that international trade and investment are important engines for sustainable economic growth, the reduction of inequality within society, and securing a better future for its people. This can be done through the conclusion of the Regional Comprehensive Economic Partnership (RCEP), where negotiations began in November 2012. The 16 RCEP-participating countries account for almost half of the worldâs population, almost 30 percent of Global Gross Domestic Product (GDP) and over a quarter of world exports. The agreement has the potential to deliver significant opportunities for businesses in ASEAN and China, including better market access and further elimination of tariffs.
Connectivity
ASEAN and China recognize the benefits of synergizing common priorities identified in the Master Plan on ASEAN Connectivity (MPAC) 2025 and Chinaâs Belt and Road Initiative (BRI). In this regard, both sides should continue to explore ways to improve connectivity, which in turn would significantly facilitate the development of economic and trade relations. Necessary measures include mobilizing private capital and enhancing capacity building to support infrastructure development in the region. Elements from the Joint Statement between ASEAN and China on Further Deepening the Cooperation on Infrastructure Connectivity must be incorporated in this regard.
People-to-people
ASEAN Member States and China have differences in, among others, governance, development level, religion, and so on; but these differences have never stopped advancing people-to-people exchanges. The 20th ASEANâChina Summit noted Cambodiaâs proposal to host the 3rd ASEANâChina Youth Exchange Visit in Siem Reap this year. These initiatives, along with Chinese Government scholarships to ASEAN Member States, including the Double 100,000 Students Mobility Program, are beneficial in promoting the social ties in which the peoples from both sides would be more âacceptableâ to each other.
Furthermore, cultural cooperation is based on mutual understanding, respect, and acceptance that can lead to harmonious ties. In this regard, intercountry cultural cooperation must start from the bottom and cannot be built from the top. This is where people-to-people cooperation is the key cornerstone.
In doing so, and as a follow-up to the Year of Tourism 2017, ASEAN and China could try and push for the establishment of a formal high-level framework of cooperation, to strengthen, deepen and broaden cooperation in tourism. Moreover, ASEAN and China could also raise awareness of ASEANâChina cultural relations and encourage opportunities for cultural exchanges through, among others, the promotion of preserving and protecting the cultural heritage of ASEAN and China.
Future challenges
Lastly, ASEAN and China could also cooperate in addressing future challenges, which may come about by 2030.
An interest of Brunei Darussalam is adapting to the Fourth Industrial Revolution â specifically the increase use of robotics and automation in the manufacturing and service sectors. While this can bring many opportunities and benefits, it is also perceived as potentially âdisruptiveâ and may have a profound impact on how we live and work. It will affect jobs, and for many of us, it means the real possibility of being technologically and economically marginalized.
Although this may take several years to set in, it requires us to look at ways to manage and adapt in the years ahead. Therefore, it would be useful to have regular discussions on this.
Another is urbanization. This is an issue that could affect both ASEAN and China. According to a report by the Economist Intelligence Unit, many local authorities in the region (ASEAN) âare struggling to manage expansion while keeping up with the rate at which their populations are increasing.â The report cautions that while the growth presents great opportunity, ASEAN cities are still grappling with basic problems and without skillful management, cities could face a multitude of problems such as congestion, crime, urban poverty, and pollution.
Here, ASEAN and China can learn f...