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China, ASEAN should not compete head-on

(Xinhua)
Updated: 2006-10-22 09:20

The partnership between China and ASEAN was more than just a business arrangement and both sides must avoid direct competition to bring about greater benefits in the future, ASEAN Secretary-General Ong Keng Yong said in an interview with Xinhua recently.

As the ten-member Association of Southeast Asian Nations (ASEAN) has changed its perception of China's development, viewing it today as an opportunity rather than a threat, both sides must explore the best way to reap the greatest benefits from their partnership, Ong said.

"The important thing is how to find what sectors could produce business opportunities, what sectors could allow us in ASEAN to have advantages over China. In China too, the businessmen are now seeking what comparative advantages they have," Ong told Xinhua at his Jakarta office.

Initially, there were some fears that China's rapid growth would take away many business opportunities and investments from ASEAN, but its member countries have gradually changed their perceptions and in many ways China's rapid growth has been seen as a motivation to improve their cooperation and integration, he said.

"Of course there are still some (people) in ASEAN who are worried about China's competition."

"But what's more important is that we are trying to guide these businessmen, who have lost their competitiveness, to other industrial sectors."

China takes the lead in various manufacturing sectors from toys and textiles to umbrellas and footwear.

"The fact we cannot compete with China in such sectors doesn't mean the end of the world. If we can't make umbrellas and shoes, we can make other things," said the 52-year-old Singaporean.

Ong suggested that ASEAN countries could produce components to be exported to China, where they could be made into complete products, and vice versa.

"The issue is beginning to develop into what we call a 'regional production network'."