Good relationship between China and the Association of Southeast Asian Nations (ASEAN) will facilitate the integration of East Asia and benefit the rest of the world, said a Singapore scholar in an exclusive interview with Xinhua recently.

China-ASEAN relations, one of the highlights of China's foreign relations with neighboring countries, have also become the most vibrant and fruitful partnership between ASEAN and the dialogue partners, said Zhao Hong, visiting research fellow of the East Asian Institute (EAI), National University of Singapore (NUS).

ASEAN, founded in 1967, groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Despite being close neighbors, China and ASEAN did not have official relations until 1991. Then in 1996, the two parties established all-around dialogue-partnership.

Henceforth, China has furthered regional cooperation in the fields of economy, trade, and political security along with the 10 ASEAN members.

"China's actives in beefing up regional cooperation in East Asia is acclaimed by the ASEAN members," said Zhao.

He noted that especially during the Asian financial crisis in 1997, China kept its currency undepreciated, which contributed to the stabilization and development of regional economy, as well as built up mutual trust between China and ASEAN.

China-ASEAN relations are based on their enhanced political trust which has laid foundation for their cooperation in economy and other fields, Zhao said.

In 2003, China joined the Treaty of Amity and Cooperation in Southeast Asia as first outsider of the grouping, signaling that the two sides enjoyed enhanced mutual political trust. The two sides also signed the China-ASEAN Joint Declaration on Strategic Partnership for Peace and Prosperity in 2003, making China ASEAN's first strategic partner.

As a result, the two-way trade between China and ASEAN has increased rapidly. The trade volume has increased by US$50 billion since the two sides initiated steps towards a free trade zone in 2002, making ASEAN the fifth largest export market for China and the fourth largest source for imports. In 2006, the trade volume reached US$160.8 billion and the figure is expected to reach 190 billion U.S.  in 2007.

"The building of the China-ASEAN Free Trade Area (FTA) has contributed to the progress of cooperation and integration of East Asia," said Zhao, adding that "it is believed that after the establishment of the China-ASEAN FTA by 2010, bilateral trade and investments will continue to expand, heading by China's investment in ASEAN."

The China-ASEAN FTA, covering a population of 1.8 billion and enjoying gross domestic product of US$2 trillion, will be the largest one to be built by developing countries.

"To sum up, China's economic growth is not a threat to ASEAN, but opportunities, so strengthening bilateral cooperation is the natural and necessary choice by both sides," said Zhao.

For China's part, he proposed that, since the regional organization needs more funds to help member countries narrow developmental gaps and improve lives, China should focus its overseas investments in the region, which could also help alleviate the pressure of soaring foreign exchange reserves on China.

He noted that the Chinese government should encourage more Chinese firms, especially the private ones, to invest in ASEAN countries, focusing on areas such as infrastructure, energy and agricultural.