Archive for ‘Association of Southeast Asian Nations (ASEAN)’

09/05/2020

Delayed South China Sea talks expose China’s complex relationship with neighbours during pandemic

  • Nations may need help from China during virus outbreaks but remain wary of Beijing as adversary in disputed waters
  • Analysts say code of conduct negotiations are too sensitive and important for virtual meetings and may be delayed until coronavirus crisis is resolved
On April 18, the US Navy Ticonderoga-class guided missile cruiser USS Bunker Hill (front) and Arleigh-Burke class guided-missile destroyer USS Barry transit the South China Sea. The presence of both Chinese and American navy ships in the area in recent weeks worries Southeast Asian nations. Photo: US Navy
On April 18, the US Navy Ticonderoga-class guided missile cruiser USS Bunker Hill (front) and Arleigh-Burke class guided-missile destroyer USS Barry transit the South China Sea. The presence of both Chinese and American navy ships in the area in recent weeks worries Southeast Asian nations. Photo: US Navy
Negotiations between China and its Southeast Asian neighbours for a South China Sea
code of conduct have been postponed as the nations involved put their efforts into containing the Covid-19 pandemic, creating uncertainty about whether the two sides can work together amid rising tensions in the contested territory.
Southeast Asian nations are increasingly caught in a dilemma whether to maintain relations with Beijing during the pandemic while also fearing that tensions over the disputed waters are spiralling out of control. Both Chinese and United States navies are sending vessels to the area more frequently.
Indonesian Foreign Minister Retno Marsudi expressed concern over recent activities in the South China Sea, noting that they might potentially escalate tensions at a time when global collective effort to fight Covid-19 was essential.

Speaking on Wednesday, she called on all parties to respect international law, particularly the United Nations Convention on the Law of the Sea.

“While negotiation of the code of conduct is being postponed due to Covid-19, Indonesia calls on all relevant parties to exercise self-restraint and to refrain from undertaking action that may erode mutual trust and potentially escalate tension in the region,” she said.
Indonesia's Foreign Minister Retno Marsudi. Photo: AP
Indonesia’s Foreign Minister Retno Marsudi. Photo: AP
Calls for a binding code of conduct surfaced in 1995 when China occupied Mischief Reef
, a maritime feature claimed by the Philippines. China did not agree to start talks until 1999, and subsequent negotiations led to a non-binding Declaration on Conduct in 2002.
The Association of Southeast Asian Nations (Asean) and China agreed in 2018 on a draft code laying the foundations for conduct in the disputed waters. At that time, Chinese Premier Li Keqiang said China hoped to complete the negotiation by the end of 2021, a move he said could show China and Asean could jointly maintain regional peace.
Named and claimed: is Beijing spoiling for a new fight in the South China Sea?
27 Apr 2020

But tensions over the South China Sea have not calmed and, in fact, have surged in recent months with both Beijing and Washington seen to be using the Covid-19 pandemic to create a stronger presence there.

This year, the US has conducted four freedom of navigation operations in the South China Sea and China has scrambled air and sea patrols to expel US vessels.

The confrontation between Beijing and Southeast Asian nations has also intensified. Last month, a Vietnamese fishing boat sank after a collision with a Chinese coastguard vessel near the Paracel Islands, known in China as the Xisha Islands, and in Vietnam as the Hoang Sa Islands.
On Saturday, the 35th escort fleet of the Chinese navy also conducted drills in the Spratly Islands chain – known as Nansha Islands in China – after completing an operation in the Gulf of Aden, off Somalia. Analysts said the drill aimed to boost far-sea training for combat ships and boost protection against piracy for Chinese merchant ships.

Collin Koh, a research fellow at the S. Rajaratnam School of International Studies, based at Nanyang Technological University in Singapore, said the code of conduct talks had been delayed because of the pandemic, but Beijing was consolidating its position in the South China Sea amid the outbreak.

“So it’s doing what it can now to consolidate and further enhance its position before talks restart, and by then these moves will raise Beijing’s leverage in the negotiations with its Asean counterparts,” he said.

“The current situation gives it a window of opportunity amid this interlude on the talks, to further advance its physical hold in the South China Sea, especially while Asean parties have their hands full on the pandemic”.

Asean nations have turned their attention to coping with coronavirus outbreaks in their own countries. On April 14, a live video conference for the special Asean Plus Three Summit on the coronavirus pandemic was held in Hanoi. Photo: AFP
Asean nations have turned their attention to coping with coronavirus outbreaks in their own countries. On April 14, a live video conference for the special Asean Plus Three Summit on the coronavirus pandemic was held in Hanoi. Photo: AFP
Kang Lin, a researcher with Hainan University, said progress for the code of conduct would still go ahead, but it might be affected as face-to-face meetings between officials were disrupted.
“The negotiations involves multiple departments, such as diplomacy, maritime affairs, fisheries and even oil and gas-related departments,” he said, adding that those discussions might go online and might not be as effective.
“It is not easy to predict to what extent it will affect next year's goals. If the pandemic cannot be eliminated in the first half of next year, it may be longer than the three-year period we had previously scheduled,” he said.
Richard Heydarian, an academic and former Philippine government adviser, said video-conference meetings would be inadequate for negotiations about the future of the South China Sea.
“The problem with the negotiation of the code is that these are very sensitive, difficult negotiations. I don't think you can really do it just online, these are things that are done in the corridors of power,” he said. “It’s close to impossible to have that right now with the suspension of all international meetings in the Asean.”

Heydarian said Southeast Asian nations hoped to get help from China to contain the pandemic, but were showing unease about Beijing.

“I think there is a lot of resentment building against China,” he said. “There is also a lot of desperation to get assistance from China and, at the same time, complete helplessness with the fact that it is very hard to conduct any important extended international meeting on the level of Asean and beyond under current circumstances.”

Chinese Foreign Ministry spokesman Hua Chunying said on Thursday that China would push forward negotiations on the code of conduct, and hoped the code would be useful for peace and stability over the South China Sea.

Source: SCMP

20/04/2020

Vietnam accuses Beijing of ‘seriously violating’ sovereignty in South China Sea

  • Move to create administrative units for disputed Paracel and Spratly Islands angers Hanoi
  • China has been engaged in a series of stand-offs with rival claimants recently
An aerial view of Sanha, a city created to assert China’s claims over the disputed waters. Photo: AFP
An aerial view of Sanha, a city created to assert China’s claims over the disputed waters. Photo: AFP

China’s latest activities in the South China Sea have triggered a strong protest from rival claimant Vietnam, which said the move “seriously violated” its sovereignty.

The complaint came after China announced on Sunday that it had set up two new administrative districts on the Paracel and Spratly Islands.

The two districts – which China referred to as Xisha and Nansha – will be under the control of Sansha, a city the Chinese government created in 2012 to assert its claims over the South China Sea.

Vietnam’s foreign ministry spokesperson Le Thi Thu Hang issued a statement of protest on Sunday, and said the move would further complicate the situation in the South China Sea.

“These acts are not conducive to the development of the friendly relations between countries and further complicate the situation in the East Sea [Vietnam’s name for the South China Sea], the region and the world,” she said.

“Vietnam demands that China respect Vietnam’s sovereignty and annul its wrongful decisions and not repeat similar activities in the future.”

Under the new plan, the new district of Xisha will be in charge of Paracel Islands, which are also claimed by Vietnam and Taiwan. The Nansha district will manage the Spratly Islands, where there are also multiple competing claims.

Beijing marks out claims in South China Sea by naming geographical features

21 Apr 2020

Chinese Foreign Ministry spokesman Geng Shuang said on Monday that the establishment of the new districts was in line with China’s normal administrative rules.

“China has been resolutely opposing Vietnam’s words and deeds that undermine China’s sovereignty and rights and interests in the South China Sea, and will continue to take necessary measures to firmly safeguard China’s sovereignty and rights and interests.” he said in a press conference

Vietnam is the only claimant which has publicly protested about the move so far. But Zhang Mingliang, an specialist in Southeast Asian politics with Jinan University, said it was likely to have alarmed other members of the Association of Southeast Asian Nations (Asean).

More footage emerges from 2018 near collision of US and China warships in South China Sea
“Setting up such districts will not have much use or actual benefit, and it will cause opposition among the Asean states, many of which have long been suspicious of China’s intentions over the South China Sea,” said Zhang.

“The coronavirus outbreak has already caused some grievances among them towards China, even though they have not been as vocal as the Western countries,” he said.

Richard Heydarian, an academic and former Philippine government adviser, described the move as China taking advantage of a “strategic vacuum” created by the Covid-19 crisis.

South China Sea: Chinese ship Haiyang Dizhi 8 seen near Malaysian waters, security sources say

18 Apr 2020

“On the one hand it’s engaging in face mask diplomacy [providing medical supplies to other countries] … but on the other hand it’s on the offensive,” he said.

“All of them should be seen as part of one package in which China seizes the strategic opportunity of not only its neighbouring countries scrambling to deal with the coronavirus outbreak, but also the US Navy’s suspension of overseas appointments.”

China has recently become involved in a series of stand-off with other claimants in the contested waters.

A Chinese government survey ship reportedly tagged an exploration vessel operated by Malaysia’s state oil company Petronas in the area, and remained off the Malaysian coastline as of late Sunday.

Earlier this month, Vietnam lodged an official protest with China after a Vietnamese fishing boat sunk after a collision in the Paracel Islands.

Source: SCMP

19/04/2020

Asian countries more receptive to China’s coronavirus ‘face mask diplomacy’

  • Faced with a backlash from the West over its handling of the early stages of the pandemic, Beijing has been quietly gaining ground in Asia
  • Teams of experts and donations of medical supplies have been largely welcomed by China’s neighbours
Despite facing some criticism from the West, China’s Asian neighbours have welcomed its medical expertise and vital supplies. Photo: Xinhua
Despite facing some criticism from the West, China’s Asian neighbours have welcomed its medical expertise and vital supplies. Photo: Xinhua
While China’s campaign to mend its international image in the wake of its handling of the coronavirus health crisis has been met with scepticism and even a backlash from the US and its Western allies, Beijing has been quietly gaining ground in Asia.
Teams of experts have been sent to Cambodia, the Philippines, Myanmar, Pakistan and soon to Malaysia, to share their knowledge from the pandemic’s ground zero in central China.
Beijing has also donated or facilitated shipments of medical masks and ventilators to countries in need. And despite some of the equipment failing to meet Western quality standards, or being downright defective, the supplies have been largely welcomed in Asian countries.
China has also held a series of online “special meetings” with its Asian neighbours, most recently on Tuesday when Premier Li Keqiang discussed his country’s experiences in combating the disease and rebooting a stalled economy with the leaders of the Association of Southeast Asian Nations (Asean), Japan and South Korea.
Chinese Prime Minister Li Keqiang speaks to Asean Plus Three leaders during a virtual summit on Tuesday. Photo: AP
Chinese Prime Minister Li Keqiang speaks to Asean Plus Three leaders during a virtual summit on Tuesday. Photo: AP
Many Western politicians have publicly questioned Beijing’s role and its subsequent handling of the crisis but Asian leaders – including Philippine President Rodrigo Duterte and Japanese Prime Minister Shinzo Abe – have been reluctant to blame the Chinese government, while also facing criticism at home for not closing their borders with China soon enough to prevent the spread of the virus.

An official from one Asian country said attention had shifted from the early stages of the outbreak – when disgruntled voices among the public were at their loudest – as people watched the virus continue its deadly spread through their homes and across the world.

“Now everybody just wants to get past the quarantine,” he said. “China has been very helpful to us. It’s also closer to us so it’s easier to get shipments from them. The [medical] supplies keep coming, which is what we need right now.”

The official said also that while the teams of experts sent by Beijing were mainly there to observe and offer advice, the gesture was still appreciated.

Another Asian official said the tardy response by Western governments in handling the outbreak had given China an advantage, despite its initial lack of transparency over the outbreak.

“The West is not doing a better job on this,” he said, adding that his government had taken cues from Beijing on the use of propaganda in shaping public opinion and boosting patriotic sentiment in a time of crisis.

“Because it happened in China first, it has given us time to observe what works in China and adopt [these measures] for our country,” the official said.

Experts in the region said that Beijing’s intensifying campaign of “mask diplomacy” to reverse the damage to its reputation had met with less resistance in Asia.

Why China’s ‘mask diplomacy’ is raising concern in the West

29 Mar 2020

“Over the past two months or so, China, after getting the Covid-19 outbreak under control, has been using a very concerted effort to reshape the narrative, to pre-empt the narrative that China is liable for this global pandemic, that China has to compensate other countries,” said Richard Heydarian, a Manila-based academic and former policy adviser to the Philippine government.

“It doesn’t help that the US is in lockdown with its domestic crisis and that we have someone like President Trump who is more interested in playing the blame game rather than acting like a global leader,” he said.

Shahriman Lockman, a senior analyst with the foreign policy and security studies programme at Malaysia’s Institute of Strategic and International Studies, said that as the US had withdrawn into its own affairs as it struggled to contain the pandemic, China had found Southeast Asia a fertile ground for cultivating an image of itself as a provider.

China’s first-quarter GDP shrinks for the first time since 1976 as coronavirus cripples economy
Beijing’s highly publicised delegations tasking medical equipment and supplies had burnished that reputation, he said, adding that the Chinese government had also “quite successfully shaped general Southeast Asian perceptions of its handling of the pandemic, despite growing evidence that it could have acted more swiftly at the early stages of the outbreak in Wuhan”.
“Its capacity and will to build hospitals from scratch and put hundreds of millions of people on lockdown are being compared to the more indecisive and chaotic responses seen in the West, especially in Britain and the United States,” he said.
Coronavirus droplets may travel further than personal distancing guidelines
16 Apr 2020

Lockman said Southeast Asian countries had also been careful to avoid getting caught in the middle of the deteriorating relationship between Beijing and Washington as the two powers pointed fingers at each other over the origins of the new coronavirus.

“The squabble between China and the United States about the pandemic is precisely what Asean governments would go to great lengths to avoid because it is seen as an expression of Sino-US rivalry,” he said.

“Furthermore, the immense Chinese market is seen as providing an irreplaceable route towards Southeast Asia’s post-pandemic economic recovery.”

Aaron Connelly, a research fellow in Southeast Asian political change and foreign policy with the International Institute for Strategic Studies in Singapore, said Asian countries’ dependence on China had made them slow to blame China for the pandemic.

“Anecdotally, it seems to me that most Southeast Asian political and business elites have given Beijing a pass on the initial cover-up of Covid-19, and high marks for the domestic lockdown that followed,” he said.

“This may be motivated reasoning, because these elites are so dependent on Chinese trade and investment, and see little benefit in criticising China.”

China and Vietnam ‘likely to clash again’ as they build maritime militias

12 Apr 2020
The cooperation with its neighbours as they grapple with the coronavirus had not slowed China’s military and research activities in the disputed areas of the South China Sea – a point of contention that would continue to cloud relations in the region, experts said.
Earlier this month an encounter in the South China Sea with a Chinese coastguard vessel led to the sinking of a fishing boat from Vietnam, which this year assumed chairmanship of Asean.
And in a move that could spark fresh regional concerns, shipping data on Thursday showed a controversial Chinese government survey ship, the Haiyang Dizhi 8, had moved closer to Malaysia’s exclusive economic zone.
The survey ship was embroiled in a months-long stand-off last year with Vietnamese vessels within Hanoi’s exclusive economic zone and was spotted again on Tuesday 158km (98 miles) off the Vietnamese coast.
Source: SCMP
20/02/2020

China, Vietnam vow to promote ties, jointly advance Lancang-Mekong cooperation

LAOS-VIENTIANE-WANG YI-VIETNAM-MEETING

Chinese State Councilor and Foreign Minister Wang Yi meets with Vietnamese Deputy Prime Minister and Minister for Foreign Affairs Pham Binh Minh in Vientiane, Laos, Feb. 19, 2020. (Photo by Kaikeo Saiyasane/Xinhua)

VIENTIANE, Feb. 19 (Xinhua) — Chinese State Councilor and Foreign Minister Wang Yi met here Wednesday with Vietnamese Deputy Prime Minister and Minister for Foreign Affairs Pham Binh Minh, with both sides pledging to further promote bilateral ties and jointly advance Lancang-Mekong cooperation.

Wang is in Vientiane, capital of Laos, for the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease and the fifth Lancang-Mekong Cooperation Foreign Ministers’ Meeting.

During the meeting with Pham Binh Minh, Wang said that under the strong leadership of the Communist Party of China Central Committee with Xi Jinping at the core, the whole party and the whole country are rallying together to counter the COVID-19 epidemic.

Thanks to the arduous efforts, China’s measures to prevent and control the epidemic have been achieving visible progress, he noted.

It is necessary for China and the Association of Southeast Asian Nations (ASEAN), linked by mountains, rivers and waters and sharing weal and woe, to timely share information and work together to tackle the epidemic so as to safeguard people’s health of China and ASEAN countries, Wang said.

Vietnam, as the ASEAN chair, has made active response to China’s proposal to hold the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease, Wang said, noting that it testifies to the fine tradition of their shared spirit of “good neighbor, good friend, good comrade and good partner” as well as supporting and helping each other, he said.

Wang expressed belief that the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease to be held Thursday will achieve success, thus sending out an explicit message that China and ASEAN countries will overcome difficulties with concerted efforts.

This year marks the 70th anniversary of the establishment of the diplomatic relations between China and Vietnam, Wang said, noting that the China-Vietnam comprehensive strategic cooperative partnership has entered into a critical phase of inheriting the past and ushering in the future.

He called on the two sides to carry forward the friendly cause initiated by past generations of leaders of both sides, implement the important consensus reached by leaders of the two countries, maintain high-level strategic communication and advance exchanges and cooperation across the board and at sub-national levels.

He also said that the two countries should properly manage and control differences, steadily promote practical cooperation in various fields and well uphold the common strategic interests of the two socialist countries.

China attaches great importance to the Lancang-Mekong cooperation, Wang said, adding that China stands ready to work together with the Vietnamese side to actively develop greater synergy between the Lancang-Mekong cooperation and the construction of the “new land-sea corridor” so as to give a boost to the economic development of the Mekong River areas.

Pham Binh Minh, for his part, said Vietnam speaks highly of the efforts China has made in the fight against the COVID-19 epidemic, believing that the Chinese government and the Chinese people will tide over the difficulties and win the fight.

Minh told Wang that those in Vietnam affected by the virus have almost recovered.

He said his country is willing to work together with China to ensure that the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease will be held successfully here on Thursday.

Noting that the development of bilateral relations has maintained good momentum for the time being, Minh hoped that the two sides will boost strategic coordination, jointly hold activities to celebrate the 70th anniversary of the establishment of the diplomatic ties between the two countries and promote the cooperation in all fields so as to make greater achievements.

He said Vietnam is willing to strengthen mutual political trust with China, properly handle maritime issues and encourage the cooperation between localities of the two countries, especially in the border areas.

Minh also said his country is willing to strengthen coordination and cooperation with China within the framework of multilateralism.

Vietnam applauds the achievements made in Lancang-Mekong cooperation and is ready to join hands with China to advance the mechanism, he added.

Source: Xinhua

04/11/2019

Seven years on, still no RCEP trade deal, and India pulls out

  • Hopes were high a regional summit could finally wrap up negotiations on the Regional Comprehensive Economic Partnership
  • But despite claims of ‘significant progress’ in the 16-nation talks, India remains a stumbling block
Indian Prime Minister Narendra Modi and China’s Premier Li Keqiang attend the Regional Comprehensive Economic Partnership Summit in Bangkok. Photo: AFP
Indian Prime Minister Narendra Modi and China’s Premier Li Keqiang attend the Regional Comprehensive Economic Partnership Summit in Bangkok. Photo: AFP
Fifteen of the countries involved in negotiating a mammoth 16-nation Asian trade pact were on Monday hoping to seal the deal after seven years of talks but faced a fresh setback as India signalled it was pulling out over terms that were against New Delhi’s interests.
A joint statement by all 16 states involved in the Regional Comprehensive Economic Partnership (RCEP) said 15 economies had “concluded text-based negotiations for all 20 chapters and essentially all their market access issues”, and would undertake legal scrubbing of the proposed pact before a formal signing in 2020.
But “India has significant outstanding issues, which remained unresolved”, the statement said.
“All RCEP participating countries will work together to resolve these outstanding issues in a mutually satisfactory way. India’s final decision will depend on satisfactory resolution of these issues.”
Multiple Indian media outlets reported that Prime Minister Narendra Modi had told a Monday evening meeting of leaders from the RCEP countries that “neither the talisman of [Mahatma Gandhi] nor my own conscience permit me to join the RCEP”.

“When I measure the RCEP agreement, with respect to the interest of Indians, I don’t get a positive answer,” he was quoted as saying.

Indians protest against the Modi-led government’s backing of the Regional Comprehensive Economic Partnership. Photo: AFP
Indians protest against the Modi-led government’s backing of the Regional Comprehensive Economic Partnership. Photo: AFP

Henry Gao, a law professor at the Singapore Management University focusing on international trade law, said an RCEP without India would be “even more worthwhile” for the so-called RCEP-15.

He cited two reasons: India’s “low ambitions” for the pact, and the high level of integration among the countries of East and Southeast Asia which are part of the RCEP-15.

“A mega trade deal like RCEP will only further accelerate the integration process and greatly boost trade and economic growth in the region,” Gao said.

Explained: Regional Comprehensive Economic Partnership (RCEP)
Earlier expectations were that the joint statement would declare at least a “substantial conclusion”, “near conclusion” or “in principle conclusion” of the RCEP, which aims to create a free-trade zone spanning 39 per cent of the world economy.
The phrasing used to describe the progress of negotiations is being closely parsed because, since it requires endorsement from all RCEP countries, it accurately captures the sentiment of all the 16 negotiating teams.
Last year, Singapore, as chair of the Association of Southeast Asian Nations (Asean), pushed for a conclusion of the deal, but eventually the joint statement declared that only “substantial progress” had been made.
Asean countries plus six others are negotiating the trade pact. Photo: AFP
Asean countries plus six others are negotiating the trade pact. Photo: AFP

Indian media, citing government sources, said the pact’s inadequate protection against import surges, the possible circumvention of rules of origin, and a lack of “credible assurances” on market access and non-tariff barriers, proved too much for New Delhi to swallow.

India,

facing fierce domestic criticism for being in the pact despite opposition even from

Modi’s 

Hindu nationalist support base, last week piled on a fresh set of demands that other countries balked at, negotiators from Southeast Asian countries said over the weekend.

Furious efforts that continued up to Sunday night failed to bridge the gap between India and the 15 countries.
India’s concerns about RCEP remain the major obstacle to world’s largest trade deal

Indian critics of the RCEP say the deal will have a ruinous impact on the South Asian economy, which has trade deficits with the other 15 countries.

The biggest opposition has come from the country’s long protected industries, such as its dairy sector, which fears it could be wiped out by lower tariffs on Australian and New Zealand products that would result from the RCEP.

Indian government sources on Monday said the country had not made last-minute demands, but Southeast Asian negotiators said major demands were made as late as Thursday.

Gao, the Singapore-based law professor, said it “makes sense for India to stay out” as it would have faced “a lot of competition from Chinese manufactured products” if it were part of the deal.

“India could temporarily shield its firms from Chinese competition by staying out, but whether this will work in the long term is a different question,” he said.

Source: SCMP

03/11/2019

Chinese premier calls for advancing South China Sea COC consultations as scheduled

BANGKOK, Nov. 3 (Xinhua) — Chinese Premier Li Keqiang said Sunday that he hopes all sides will actively carry forward consultations on the Code of Conduct (COC) in the South China Sea according to the previously agreed timetable.

Li made the comment at the 22nd China-ASEAN (10+1) leaders’ meeting in Bangkok.

The South China Sea situation has been generally stable as a result of concerted efforts between China and the Association of Southeast Asian Nations (ASEAN) member states, Li said.

“Last year, I proposed a vision that the COC talks will be completed in three years,” he said, adding that in the past year, the first reading of the single draft negotiating text of the COC in the South China Sea has been completed ahead of schedule, and the second reading has been launched.

The COC is an upgraded version of the Declaration on the Conduct of Parties in the South China Sea (DOC). Relevant sides are expected to follow the DOC principles, resist disruptions, meet each other halfway, and finish the second reading in 2020, Li said.

Li called on all sides to uphold peace, friendship, and cooperation in the South China Sea and safeguard lasting peace, stability in the region.

Source: Xinhua

03/11/2019

China, SE Asian states push trade pact despite India doubts

BANGKOK (Reuters) – Leaders from China and Southeast Asia states called for swift agreement on what could become the world’s largest trade bloc at a regional summit on Sunday, but new demands from India left officials scrambling to salvage progress.

Hopes of finalising the Asia-wide Regional Comprehensive Economic Partnership (RCEP), which is backed by China, have been thrown into doubt at the summit of the Association of Southeast Asian Nations (ASEAN) in Bangkok, Thailand.

Summit host Thailand said late on Sunday that the deal could be signed by February 2020. Thailand had previously said it aimed to conclude negotiations by the end of the year.

New impetus to reach agreement has come from the U.S.-China trade war, which has helped knock regional economic growth to its lowest in five years.

“The early conclusion of RCEP negotiations will lay the foundation for East Asia’s economic integration,” said a statement from China’s foreign ministry after Premier Li Keqiang met Southeast Asian leaders.

But Indian Prime Minister Narendra Modi did not even mention the RCEP deal in opening remarks at a meeting with Southeast Asian leaders and instead spoke only of reviewing the existing trade agreement between ASEAN and India.

Nor did Modi mention the trade bloc, whose 16 countries would account for a third of global gross domestic product and nearly half the world’s population, in Twitter posts after meeting Thai and Indonesian leaders.

An Indian foreign ministry official later told a media briefing “Let’s take all the RCEP questions tomorrow.”

Southeast Asian countries had hoped at least a provisional agreement could be announced on Monday.

But India has been worried about a potential flood of Chinese imports. A person with knowledge of New Delhi’s negotiations said new demands were made last week “which are difficult to meet.”

TRADE WAR IMPACT

Negotiators were meeting into the evening on Sunday to try to come to an agreement, Thai government spokeswoman Narumon Pinyosinwat told reporters on Sunday.

“We don’t have a conclusion yet. Once there is one, it would be announced,” she said. “Commerce ministers are still discussing outstanding issues. The signing is expected around February next year.”

Thai Prime Minister Prayuth Chan-ocha told the formal opening of the ASEAN summit on Sunday that the 16 nations in the potential trade bloc ought to come to agreement this year to stimulate economic growth, trade and investment.

Some countries have raised the possibility of moving ahead without India on forming a bloc that also included Japan, South Korea, Australia and New Zealand.

But Thai commerce minister Jurin Laksanawisit told Reuters on Sunday that India had not pulled out.

Another advantage for Southeast Asian countries from having relative heavyweight India in the trade pact would be less domination by China.

Longstanding rivals China and India, which fought a border war in 1962, clashed verbally in recent days over India’s decision to formally revoke the constitutional autonomy of the disputed Muslim majority state of Kashmir.

The U.S. decision to send a lower level delegation to the summits this year has raised regional concerns that it can no longer be relied on as a counterweight to China’s increasing regional might.

Instead of President Donald Trump or Vice President Mike Pence, the United States will be represented by Commerce Secretary Wilbur Ross and White House national security adviser Robert O’Brien.

At the summit, China’s Premier Li said China was ready to work with countries in the region for long term peace and stability in the South China Sea, where neighbours reject Beijing’s sweeping maritime claims.

Source: Reuters

25/10/2019

China, ASEAN trade to continue expanding, driving global growth amidst uncertainties: Malaysian official

KUALA LUMPUR, Oct. 25 (Xinhua) — Trade between China and the Association of Southeast Asian Nations (ASEAN) will continue to expand, serving as an engine for global economic growth, Malaysian International Trade and Industry Deputy Minister Ong Kian Ming said on Friday.

Speaking at the 2019 China Macroeconomic Roundtable “Economic Forecast, High Quality Development, and Policy Implications” hosted in Xiamen University Malaysia, Ong said despite downward forecasts, strong economic activity between China and the ASEAN would help both weather the storm.

As the economic growth in China and Southeast Asia would continue to outstrip the economic growth of the United States as well as Europe, the greater cooperation between China and the ASEAN will have a bigger impact to the wider world, Ong said.

“We definitely can see Asia not only as an engine of services and manufacture and production but also later on as the engine of growth for the global economy. So there are many opportunities for China and Southeast Asia to work together in order to improve the economic outlook for our respective countries, as well as globally,” he said.

Jointly organized by the Center for Macroeconomics Research at Xiamen University and Xiamen University Malaysia, this year’s overseas forecast conference is the first time that the event was held in Malaysia.

At the conference, the team from the Center for Macroeconomics Research at Xiamen University released China’s main macroeconomic indicators for 2019-2020 and reported its policy implications based on simulation analysis.

Also released was the findings of this year’s “Economists Questionnaire Survey on China’s Macroeconomic Outlook,” which was co-organized by Xiamen University and Economic Information Daily newspaper.

Since 2006, Xiamen University has been holding China’s macroeconomic forecast conference twice a year.

Source: Xinhua

27/09/2019

Japan lists China as bigger threat than nuclear-armed North Korea

TOKYO (Reuters) – China’s growing military might has replaced North Korean belligerence as the main security threat to Japan, Tokyo’s annual defence review indicated on Thursday, despite signs that Pyongyang could have nuclear-tipped ballistic missiles.

The document’s security assessment on China comes after a section on Japan’s ally, the United States, the first time Beijing has achieved second place in the Defence White Paper and pushing North Korea into third position.

Russia, deemed by Japan as its primary threat during the Cold War, was in fourth place.

“The reality is that China is rapidly increasing military spending, and so people can grasp that we need more pages,” Defence Minister Taro Kono said at a media briefing.

“China is deploying air and sea assets in the Western Pacific and through the Tsushima Strait into the Sea of Japan with greater frequency.”

China’s Foreign Ministry expressed displeasure with the report.

China will not accept Japan’s “groundless criticism” of its normal national defence and military activities, spokesman Geng Shuang said at a press briefing in Beijing.

Japan has raised defence spending by a tenth over the past seven years to counter military advances by Beijing and Pyongyang, including defences against North Korean missiles which may carry nuclear warheads, the paper said.

North Korea has conducted short-range missile launches this year that Tokyo believes show Pyongyang is developing projectiles to evade its Aegis ballistic missile defences.

To stay ahead of China’s modernising military, Japan is buying U.S.-made stealth fighters and other advanced weapons.

In its latest budget request, Japan’s military asked for 115.6 billion yen ($1.1 billion) to buy nine Lockheed Martin (LMT.N) F-35 stealth fighters, including six short take-off and vertical landing (STOVL) variants to operate from converted helicopter carriers.

The stealth jets, U.S.-made interceptor missiles and other equipment are part of a proposed 1.2% increase in defence spending to a record 5.32 trillion yen in the year starting April 1.

By comparison, Chinese military spending is set to rise this year by 7.5% to about $177 billion from 2018, more than three times that of Japan. Beijing is developing weapons such as stealth fighters and aircraft carriers that are helping it expand the range and scope of military operations.

Once largely confined to operating close to the Chinese coast, Beijing now routinely sends its air and sea patrols near Japan’s western Okinawa islands and into the Western Pacific.

China has frequently rebuffed concerns about its military spending and intentions, including an increased presence in the disputed South China Sea, and says it only desires peaceful development.

The Defence White Paper said Chinese patrols in waters and skies near Japanese territory are “a national security concern”.

The paper downgraded fellow U.S. ally, South Korea, which recently pulled out of an intelligence sharing pact with Japan amid a dispute over their shared wartime history. That could weaken efforts to contain North Korean threats, analysts said.

Other allies, including Australia, the Association of Southeast Asian Nations (ASEAN) and India, feature more prominently in the defence paper.

South Korean government officials took issue with the White Paper’s reference to ownership of an island in the Sea of Japan that is also claimed and controlled by South Korea. The outcrop is known as Dokdo in Seoul and Takeshima in Tokyo.

“Our government strongly protests Japan’s repeated claim. The Japanese government should acknowledge that it is not helpful for bilateral relations,” South Korea’s foreign ministry said.

Source: Reuters

24/09/2019

China Focus: China, ASEAN embrace shared future along Belt and Road

NANNING, Sept. 23 (Xinhua) — The Belt and Road Initiative (BRI) provides momentum for regional economic integration and connectivity, helping China and ASEAN forge a closer community of shared future, said Cambodian Deputy Prime Minister Hor Nam Hong.

Hor made the remarks Saturday at the opening ceremony of the 16th China-ASEAN Expo themed “Building the Belt & Road, Realizing Our Vision for a Community of Shared Future.”

The deputy vice prime minister envisioned that the China-ASEAN strategic partnership and the BRI will further deepen the cooperation between the two sides in the joint pursuit of shared prosperity.

Statistics show that China has signed cooperation agreements with more than 130 countries across the globe and 30 international organizations on jointly building the Belt and Road, benefiting people of the involved nations.

Highlighting regional economic cooperation, this year’s China-ASEAN expo is expected to lift the practical and comprehensive cooperation between China, ASEAN and other countries participating in the BRI to new heights.

The expo has served as a crucial platform for promoting investment and trade in Asia over the past 16 years, setting an example of friendly cooperation between China and ASEAN, said Luhut Binsar Pandjaitan, special envoy of the Indonesian president and coordinating minister for maritime affairs.

As the Country of Honor for this year’s expo, Indonesia will showcase its high-quality products from more than 100 Indonesian enterprises.

Speaking highly of the BRI, Luhut said cooperation under the China-proposed initiative will boost infrastructure construction and trade among members of ASEAN to facilitate the building of the ASEAN Community.

To push China-ASEAN ties to new heights, both sides are making joint efforts in constructing the Belt and Road and implementing the Master Plan on ASEAN Connectivity 2025 under the guidance of the China-ASEAN Strategic Partnership Vision 2030.

The BRI accelerates regional connectivity and improves people’s livelihoods, said Thai Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit, adding that Thailand had formulated plans to contribute to the completion of the Regional Comprehensive Economic Partnership, alleviate volatility of the global economy and trade, and inject momentum into sustainable development.

Two-way investment between China and ASEAN countries grew robustly to reach 230 billion U.S. dollars in the first eight months of this year, with the establishment of 25 economic and trade cooperation zones creating over 100,000 jobs.

Meanwhile, the cooperation between China and ASEAN in fields including international production capacity, the digital economy and e-commerce is also leaping forward.

Hailing the achievements of cooperation under the BRI, Lao Deputy Prime Minister Sonexay Siphandone said Laos will take an active role in building the Belt and Road.

Citing the China-Laos railway, the largest cooperation project between the two sides so far, Sonexay said it will promote regional peace, prosperity and sustainable development.

Apart from prospering bilateral trade and investment, recent years have seen the deepening of China-ASEAN cooperation in various other fields. ASEAN has become the largest destination for Chinese tourists, with the number of personal exchanges hitting 57 million in 2018 and nearly 4,000 flights traveling between both sides every week.

Holding similar viewpoints, Myanmar’s Vice President U Myint Swe said the BRI provides opportunities for developing trade and cross-border exchanges and bridging infrastructure gaps.

Looking forward to shared prosperity, Jurin said Thailand, as well as ASEAN, will collaborate with China to strive for sustainable development.

Source: Xinhua

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