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Platform helps push for expanding role of Asia

By Zhai Kun (China Daily)
Updated: 2009-04-21 07:44

This year's annual conference of the Boao Forum for Asia, which concluded on Sunday in the scenic town bearing its name in Hainan province, heralds a strengthened role of the China-sponsored event in promoting Asian cooperation and development.

As the eighth of its kind, this year's forum has brought people more hope for deepened Asian integration and cooperation amid global efforts to tackle the financial crisis. Since its creation in 2002, the annual forum has acted as an important platform for Asian leaders and economic circles to exchange views on Asian affairs and to work out practicable formulas for win-win cooperation among regional members.

At a time when the global financial crisis has yet to bottom out, this year's forum is aimed at promoting deepened cooperation between China and other Asian countries in grappling with the global financial crisis and pursuing win-win results. To pull the regional economy out of the current predicament as early as possible, a comprehensive prescription that should not only involve close cooperation and collaboration among regional members but also include various fields such as trade, investment and finance, is desperately needed.

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The tour of Europe by Premier Wen Jiabao in early February and President Hu Jintao's participation in the G20 London summit earlier this month have offered chances for China's top leaders to talk with European leaders and those from other countries about a panacea for the world's ailing economy. The Boao Forum, however, has presented Asian leaders a chance for face-to-face consultations about concerted measures to offset the impact of the ongoing financial crisis on regional members and boost the slowing regional economy.

At the conference, Premier Wen delivered a keynote speech, mapping out ways to deepen regional cooperation and boost confidence. He introduced to other participants the measures China has taken to cope with the crisis and said the stimulus packages the country has launched are paying off.

"Positive changes have taken place and situations are better than expected," Wen said. The Chinese premier's remarks have boosted other participants' confidence on the prospect of the regional economy. Undoubtedly, as the world's third largest economy, a China that is on the way out of an economic slowdown will inevitably help extricate Asia from the current financial crisis.

At the forum, Premier Wen said China would continue to embrace a long-cherished friendly and neighborly foreign policy. He also raised a series of proposals to deepen Asian economic and trade cooperation, as well as maintain regional financial stability. Proposals such as developing an investment-driven economy, pressing ahead with "green" growth in Asia and promoting world peace, stability and prosperity were also put forward. Covering a wide range of fields, from the establishment of a free trade zone between China and the Association of Southeast Asian nations (ASEAN) members, to expediting regional and sub-regional traffic, power and communication cooperation, these workable proposals will greatly boost regional economic development if they are to be effectively implemented.

China has also decided to set up a $10 billion fund to promote investment cooperation with ASEAN members, in support of infrastructure development in the region.

A proposal to expand bilateral swap volumes and membership was put forward by some participants. That could herald a multilateral development of the Chiang Mai Initiative, which was signed by financial ministers of the 10-member ASEAN and China, Japan and South Korea in May 2005 and was aimed at setting up a network of bilateral swap arrangements among the 10+3 countries.

Participants at the forum also reached a consensus on increasing the region's stockpile of foreign reserves from the current $80 billion to $120 billion. According to the proposals, the initiative's membership would possibly extend to Australia, New Zealand and India, in addition to its 13 members. So far, China has decided to conduct yuan settlement for transnational trade in Shanghai and three of its other coastal cities. The adoption of yuan settlement in business in international trade will surely contribute to the development of the Chinese currency as a regional reserve currency.

At the forum, participants also touched on other wider topics, ranging from the promotion of deepened cooperation among APEC members, to the Asia-Europe Summit, Asia-Middle East dialogue and plans to strengthen and improve Asian cooperation with other regions.

Since its adoption of the reform and opening-up policy and its integration into the outside world, China has been committed to creating an Asian forum that strengthens exchanges and cooperation for regional members. With its political and economic influence growing on the regional and international stage and in particular, its growing contribution to Asian recovery and global efforts to handle the ongoing financial crisis, the Boao Forum is expected to play an increasingly major role in promoting cooperation and development within Asian countries, and between Asia and the rest of the world.

The author is deputy director of the Institute of Asian and African Studies under the China Institutes of Contemporary International Relations.