 ASEAN offers trade potential
By Qiu Quanlin (China Daily)
Updated: 2008-09-27 09:19
GUANGZHOU: Despite a big trade drop with Europe and the United States due to global economic slowdown, Guangdong province has seen a rapid trade development with ASEAN (Association of Southeast Asian Nations) this year. In the first seven months, the trade turnover between Guangdong and ASEAN reached about $35.8 billion, a year-on-year jump of 19.9 percent, according to official statistics with the Guangdong Foreign Trade and Economic Department. Meanwhile, the export volume from Guangdong to the United States dropped by 7.8 percent year on year in the first half of this year. The rapid trade development with ASEAN is seen by researchers and officials as a signal that Guangdong, the nation's leading province in terms of economic development, has attached more importance to economic and trade cooperation with ASEAN. "Trade and economic cooperation with ASEAN will play an increasingly important role for Guangdong to maintain its leading position in terms of economic development in years ahead," said Feng Shengping, a researcher with the Guangdong Provincial Situation Study and Research Center. In south China, Guangdong has a geological advantage with ASEAN, Feng said. "The robust economic development in Guangdong has also attracted many investors and helped boost trade cooperation with ASEAN," the researcher said. "Due to increased costs of labor and production and rocketed energy price, Guangdong-based enterprises are facing amounting difficulties in trade with the United States." As a result, they must seek new ways for trade growth in years ahead, Feng emphasized. The importance of economic and trade cooperation between Guangdong and ASEAN is well illustrated by a half-month visit by the Guangdong business delegation, led by the provincial Party Chief Wang Yang in September, to four ASEAN countries, including Vietnam, Singapore, Indonesia and Malaysia. The delegation signed a series of trade and investment deals worth about $10.9 billion with the four countries. Also, the ASEAN Secretariat and Guangdong signed in Jakarta an agreement aimed at deepening and widening Guangdong and ASEAN business forum and cooperation through mechanism. Under the agreement, the two sides will explore and facilitate cooperation activities in various areas including agriculture, information and communication technology, trade and investment, tourism promotion, energy and environment, education and public health. "The agreement with the ASEAN Secretariat represents our strong willingness to further trade and economic cooperation with ASEAN," Wang said. According to Wang, ASEAN has surpassed Japan to become the fourth largest trade partner with Guangdong. "There will be plenty of business opportunities with ASEAN as the China-ASEAN Free Trade Zone is due to completion in 2010," Wang noted. In particular, Guangdong hopes more cooperation with ASEAN in the service industry as the southern province is undergoing an industrial upgrading process, according to Wang. (China Daily 09/27/2008 page19) |
