Posts tagged ‘Southeast Asia’

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12/11/2013

China’s meager aid to the Philippines could dent its image | Reuters

To many, China‘s $200,000 against the US’s $20m will look more like an insult than aid. Even the UK has pledged £5m. Let’s hope it is a case of mis-reporting!

“China may have wasted the chance to build goodwill in Southeast Asia with its relatively paltry donation to the Philippines in the wake of a devastating typhoon, especially with the United States sending an aircraft carrier and Japan ramping up aid. People leave on a boat against the backdrop of a destroyed fishing community after the Super typhoon Haiyan battered Tacloban city in central Philippines November 12, 2013. REUTERS/Edgar Su

The world\’s second-largest economy is a growing investor in Southeast Asia, where it is vying with the United States and Japan for influence. But China\’s assertiveness in pressing its claim to the disputed South China Sea has strained ties with several regional countries, most notably the Philippines.

China\’s government has promised $100,000 in aid to Manila, along with another $100,000 through the Chinese Red Cross – far less than pledged by other economic heavyweights. Japan has offered $10 million in aid and is sending in an emergency relief team, for instance, while Australia has donated $9.6 million.

\”The Chinese leadership has missed an opportunity to show its magnanimity,\” said Joseph Cheng, a political science professor at the City University of Hong Kong who focuses on China\’s ties with Southeast Asia. \”While still offering aid to the typhoon victims, it certainly reflects the unsatisfactory state of relations (with Manila).\” China\’s ties with the Philippines are already fragile as a decades-old territorial squabble over the South China Sea enters a more contentious chapter, with claimant nations spreading deeper into disputed waters in search of energy supplies, while building up their navies. Vietnam, Malaysia, Brunei and Taiwan also claim parts of the South China Sea, making it one of the region\’s biggest flashpoints. The Association of South East Asian Nations (ASEAN), a 10-nation grouping that includes the Philippines, has been talking to China about a binding code of conduct in South China Sea to ease the friction, but Beijing\’s frugal aid hints at a deeply entrenched rivalry that could make forging consensus difficult.

Even China\’s state-run Global Times newspaper, known for its nationalistic and often hawkish editorial views, expressed concern about the impact on Beijing\’s international standing. \”China, as a responsible power, should participate in relief operations to assist a disaster-stricken neighboring country, no matter whether it\’s friendly or not,\” the paper said in a commentary. \”China\’s international image is of vital importance to its interests. If it snubs Manila this time, China will suffer great losses.\””

via China’s meager aid to the Philippines could dent its image | Reuters.

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19/08/2013

El Indio: Seeking Symmetry

Jakarta Globe: ” The eminent academician Dr. Anis H. Bajrektarevic says that “there [can be] no Asian century, without the Pan-Asian multilateral setting.” The Americas, he says, have the Organization of American States (OAS), Africa has the African Union, and Europe has the Organization for Security and Cooperation in Europe (OSCE). There is no counterpart in the sprawling continent of Asia.

China

We do have multilateral settings, like South Asian Association for Regional Cooperation (SAARC) and Association of Southeast Asian Nations (Asean), but these are in spots of a huge continent. Wide forums like Asia-Pacific Economic Cooperation (APEC) have no security mandate. I add: the Bali Principles of the East Asia Summit aren’t legally binding. To Bajrektarevic, the robust structures in Asia are bilateral and asymmetric: US-Japan, US-Singapore, Russia-India, Australia-Timor-Leste, etc.

Hence, the situation in Asia today, he says, is akin to that of Europe before World War II. Neither balanced nor symmetrical, it’s unstable.

That’s one more compelling reason why regional nations should support the proposal of Indonesian Foreign Minister Marty Natalegawa for an Indo-Pacific regional treaty of friendship and cooperation. The envisioned treaty would be something like the Treaty of Amity and Cooperation (TAC) in Southeast Asia, but this time covering the larger Indo-Pacific region.

Thus, the larger region would replicate the experience of Asean countries. Assured that the guns would remain silent, they could focus on building confidence and common security, and the pursuit of economic and sociocultural synergy.

The initial negotiating venue, says Marty, will be the East Asia Summit, which groups Asean with China, South Korea and Japan as well as the United States, Russia, India, Australia and New Zealand. Since the non-Asean participants have all acceded to the TAC, they should have no problem committing themselves to old commitments.

So far, only the United States has committed itself in principle to supporting the proposal. All other foreign ministers concerned have taken official note of it. No one has voiced objection. Several Asean diplomats have expressed personal opinions favorable to the idea, taking care to belabor their views are not official.

Two Asean members that should be early supporters of the proposal are Vietnam and the Philippines. They’re on the frontline of the dispute over China’s voracious claim to the South China Sea. Late last week the foreign minister of Vietnam made an official visit to the Philippines. He and his Filipino counterpart talked about working with Asean for an early start of negotiations toward a Code of Conduct in the South China Sea.

Comments are mostly in favor, some affirming the need for the projected treaty while expressing fear there’s too little trust among relevant nations for it to see the light of day. One Australian pundit cast doubt if a divided Asean has the muscle to push it. There are the usual knee-jerk predictions that China will shoot it down.

The dilemma is that while progress toward the proposed treaty must be incremental — it has to be painstakingly crafted and chewed over — the need for it is urgent. Any time, any day, violent conflict could erupt in the region for three reasons cited by Marty: the trust deficit within and among nations, the unresolved territorial disputes all over the region, and the profound geopolitical changes taking place within it.

There is also that lack of symmetry in the bilateral alliances involving the regional nations. This can only be remedied by a comprehensive and binding multilateral structure that would give the region greater stability.

That can only be an Indo-Pacific treaty of friendship and cooperation.”

via El Indio: Seeking Symmetry – The Jakarta Globe.

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23/07/2013

China to expand imports from ASEAN members

Is this action based on genuine economic reasons or is it partly to diffuse China‘s tension with many ASEAN countries involved with the on–going maritime territorial disputes?

China Daily: “China pledged to increase its imports from the Association of Southeast Asian Nations as bilateral trade started to favor China in the second half of 2012, Vice-Minister of Commerce Gao Yan told a news briefing on Tuesday.

Emblem of ASEAN

Emblem of ASEAN (Photo credit: Wikipedia)

China will enhance trade facilitation through cooperation with ASEAN members in areas including customs and quality checking while sending purchasing groups for agricultural products from ASEAN members, Gao said.

In addition, exhibitions, including the 10th CAEXPO to be held September 3-6 in Nanning, Guangxi Zhuang autonomous region, will serve as opportunities for ASEAN exporters to expand their sales to China, she added.

China is the biggest trade partner of ASEAN and bilateral trade hit $400.1 billion in 2012, with Chinese exports totaling $204.3 billion and imports of $195.8 billion, leaving a trade surplus of $8.5 billion. China previously had a trade deficit with ASEAN, Gao said.”

via China to expand imports from ASEAN members |Economy |chinadaily.com.cn.

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25/04/2013

* Southeast Asia to reach out to China on sea disputes

Reuters: “Southeast Asian nations stepped up efforts on Thursday to engage China in talks to resolve maritime tensions, agreeing to meet to try to reach common ground on disputed areas of the South China Sea ahead of planned discussions in Beijing later this year.

A general view of the retreat during the ASEAN Summit at the Prime Minister's Office in Bandar Seri Begawan April 25, 2013. Leaders of the Association of Southeast Asian Nations (ASEAN) gathered in Brunei's capital for two days beginning Wednesday for their 22nd summit. REUTERS-Ahim Rani

Efforts by ASEAN to craft a code of conduct to manage South China Sea tensions all but collapsed last year at a summit chaired by Cambodia, a close economic ally of China, when the group failed to issue a closing statement for the first time.

Cambodia was accused of trying to keep the issue off the agenda despite a surge in tension over disputed areas and growing concern about China’s assertive stance in enforcing its claims over a vast, potentially energy-rich sea area.

Thursday’s initiative came as the 10-member Association of Southeast Asian Nations (ASEAN) tried to patch up differences that shook the group last year, but struggled to make progress on long-held plans to agree on a dispute-management mechanism.

Thailand, which has the role of ASEAN coordinator with China, called for the talks ahead of an ASEAN-China meeting expected in August to commemorate 10 years since they formed a “strategic partnership”.”

via Southeast Asia to reach out to China on sea disputes | Reuters.

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24/02/2013

* Railway linking China, ASEAN becomes operational

New Orient Express slowly taking shape.

Xinhua: “A railway that links southwest China’s Yunnan Province with the Association of Southeast Asian Nations (ASEAN) countries became operational on Saturday after seven years of construction, local railway authorities said.

The railway between Yuxi and Mengzi is part of the eastern line of the planned Pan-Asia Railway network.

The 141-km railway has a designed maximum speed of 120 km per hour. It passes through 35 tunnels and crosses 61 bridges, which together account for 54.95 percent of the eastern line’s total length.

The eastern line also consists of Kunming-Yuxi Railway, which had been in operation, and the Mengzi-Hekou Railway that is under construction and scheduled to be operational end of next year.

Upon the full completion of the eastern line, it will further open up China’s southwest, improve transportation and boost economic development along the line, experts said.

The Pan-Asia Railway network also consists of central and western lines and is an international railway project that will bring China closer with southeast Asia.”

via Railway linking China, ASEAN becomes operational – Xinhua | English.news.cn.

see also: 

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07/02/2013

* China, Malaysia Plan $3.4 Billion Industrial Park in Kuantan

Bloomberg: “Chinese and Malaysian companies agreed to invest 10.5 billion ringgit ($3.4 billion) on an industrial park in the Southeast Asian nation which will include steel and aluminum plants as well as a palm oil refinery.

China’s Guangxi Beibu Gulf International Port Group will jointly build the park in Kuantan with Malaysia’s Pahang state government and property developer SP Setia Bhd. (SPSB), according to a statement from the East Coast Economic Region Development Council. Jia Qinglin, chairman of China’s top advisory body, attended a ground-breaking ceremony with Malaysia’s Prime Minister Najib Razak today.

Jia, chairman of the Chinese People’s Political Consultative Conference, is on a four-day visit aimed at boosting business ties with the commodities-rich Southeast Asian nation. Najib proposed building the Malaysia-China Kuantan Industrial Park after the countries agreed last year to develop a similar estate in Qinzhou in southern China’s Guangxi region. Both cities have ports.

“A distinct and competitive supply chain will emerge between them,” Najib said in a speech. “There will be cross- border movement of manufactured goods with Kuantan Port and Qinzhou Port serving as trans-shipment hubs redistributing goods to markets around the world.”

Guangxi Beibu, SP Setia and the Pahang state government will invest 2.5 billion ringgit to develop the Malaysian park, according to the statement. The Chinese company will spend another 5 billion ringgit to build a steel plant, aluminum processing facilities and a palm oil refinery within the estate, plus 3 billion ringgit to expand Kuantan’s port with IJM Corp. (IJM)

The palm oil refinery will be a joint venture with Malaysia’s Rimbunan Hijau Group, it said.

“This year, we expect more than 1 billion ringgit of Chinese foreign direct investment in Malaysia,” Najib said, adding that the Kuantan projects should create 8,500 jobs. “Over the next five years, we expect two-way trade to reach $100 billion.””

via China, Malaysia Plan $3.4 Billion Industrial Park in Kuantan – Bloomberg.

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22/01/2013

* China Pushes Industry Consolidation

WSJ: “China’s industry ministry on Tuesday set an aggressive goal of forging global giants in the electronics sector within the next two years through mergers and alliances, and reiterated a longstanding push for Chinese companies to explore overseas acquisitions.

The target for the electronics sector is part of a wider plan to consolidate China’s fragmented major industries, including steel, shipping, automotives, cement and aluminum. Overcapacity in heavy industries has been blamed for amplifying a sharp slowdown in growth in the last two years.”

via China Pushes Industry Consolidation – WSJ.com.

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17/01/2013

* China Loses Edge As Worlds Factory Floor

WSJ: “China is losing its competitive edge as a low-cost manufacturing base, new data suggest, with makers of everything from handbags to shirts to basic electronic components relocating to cheaper locales like Southeast Asia.

imageThe shift—illustrated in weakened foreign investment in China—has pluses and minuses for an economy key to global growth. Beijing wants to shift to higher-value production and to see incomes rise. But a de-emphasis on manufacturing puts pressure on leaders to make sure jobs are created in other sectors to keep the worlds No. 2 economy humming.

Total foreign direct investment flowing into China fell 3.7% in 2012 to $111.72 billion, the Ministry of Commerce said Wednesday, the first annual decline since the fallout from the global financial crisis in 2009.

Then, a 13% fall in foreign investment into China reflected dire conditions for business in the U.S. and Europe, and global risk aversion, which choked off capital flows. Economists say the drop in 2012 is partly cyclical, driven by slowing overall growth in China and Europe’s prolonged debt crisis.

But it also is the result of a long-term trend of rising wages and other costs that have made China less attractive, especially for basic manufacturing, economists say.

By contrast, foreign direct investment into Thailand grew by about 63% in 2012, and Indonesia investment was up 27% in the first nine months of last year.

Coronet SpA, an Italian maker of synthetic leather with production in the southern Chinese province of Guangdong, plans a new factory in Vietnam to take advantage of lower labor costs and to be closer to its customers in the shoe and handbag businesses, many of which have already moved there.

via China Loses Edge As Worlds Factory Floor – WSJ.com.

See also: https://chindia-alert.org/2012/12/07/apple-to-return-some-mac-production-to-u-s-in-2013/

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22/12/2012

* TATAY RIVER, Cambodia: China is top dam builder, going where others won’t

Miami Herald: “Up a sweeping jungle valley in a remote corner of Cambodia, Chinese engineers and workers are raising a 100-meter- (330-foot-) high dam over the protests of villagers and activists. Only Chinese companies are willing to tame the Tatay and other rivers of Koh Kong province, one of Southeast Asia’s last great wilderness areas.

It’s a scenario that is hardly unique. China’s giant state enterprises and banks have completed, are working on or are proposing some 300 dams from Algeria to Myanmar.

Poor countries contend the dams are crucial to bringing electricity to tens of millions who live without it and boosting living standards. Environmental activists and other opponents counter that China, the world’s No. 1 dam builder, is willing and able to go where most Western companies, the World Bank and others won’t tread any more because of environmental, social, political or financing concerns.

“China is the one financier able to provide money for projects that don’t meet international standards,” said Ian Baird, an assistant professor of geography at the University of Wisconsin who has worked in Southeast Asia for decades. “You go to China if you want to have them financed.”

The consequence, critics say, is a rollback to an era of ill-conceived, destructive mega-dams that many thought had passed. The most recent trend is to dam entire rivers with a cascade of barriers, as China’s state-owned Sinohydro has proposed on Colombia’s Magdalene River and the Nam Ou in Laos, where contracts for seven dams have been signed.

Viewed by some in the developing world as essential icons of progress, dams in countries as far apart as Ecuador, Myanmar and Zambia have spearheaded or reinforced China’s rising economic might around the world. They are tied to or put up in tandem with other infrastructure projects and businesses, and power generation equipment ranks as China’s second-largest export earner after electrical machinery and equipment.

In energy-starved Cambodia, trade with China has risen to 19 percent of GDP from 10 percent five years ago, according to an Associated Press analysis of International Monetary Fund data.

The year-old $280 million Kamchay Dam in Cambodia’s Kampot province was the largest ever foreign investment when approved as well as a political flag-carrier for Beijing. It has been hailed by both governments as a “symbol of close Chinese-Cambodian ties.”

Cambodia’s electricity demand grew more than 16 percent a year from 2002 to 2011, with shortfalls largely met through costly oil imports, said Bun Narith, a deputy director general in the Ministry of Industry, Mines and Energy. Only 14 percent of rural homes have electricity, one of the lowest levels in Southeast Asia.

“We have no choice,” Bun Narith said. “Hydropower is the priority, and the Chinese have the initiative and capability, both financial and technical.”

The 20 hydro dams built, being constructed or under study in Cambodia, the bulk of them by the Chinese, would lift Cambodia out of literal darkness and make it energy self-sufficient, he said. “We should have a win-win policy, a balance between environment and energy. After all, electricity is also a basic human need.””

via TATAY RIVER, Cambodia: China is top dam builder, going where others won’t – World Wires – MiamiHerald.com.

 

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20/12/2012

* Amid China tensions, Southeast Asia looks to India

ASEAN nations turning to India to counter-balance China’s aggressive position on territorial disputes.

Reuters: “Southeast Asian leaders are expected to lay out a vision for closer cooperation with India on security and the economy at a high-level gathering in New Delhi at a time of tension with China in the potentially oil- and gas-rich South China Sea.

ASEANIndian flagThe meeting is a ceremonial summit to mark 20 years of cooperation with India and will not include detailed negotiations on regional issues, India’s Foreign Minister Salman Khurshid told Reuters.

But ministry officials said the leaders would also produce a statement which is expected to reiterate a commitment to freedom of navigation, a hot issue because of territorial conflicts in the South China Sea.

Some ASEAN countries contest claims by China in the waters, making it the biggest potential flashpoint in the region. The United States has called for calm, but some are also looking to India, the other regional heavyweight, to get involved.

“They want India to play a larger role. Those concerns are only increasing given the uncertain situation that is emerging,” said C. Raja Mohan, a strategic affairs expert at the Observer Research Foundation think-tank.

For India, improved relations with Southeast Asia will give it entry into one of the fastest-growing economic regions in the world and a source of raw materials needed for its own growth.

Poor there are poor transport links between India and the nations to its southeast, and constraints like India’s tiny diplomatic corps – similar in size to New Zealand’s – mean India trails China in relations with the region.

Trade between India and the 10-member ASEAN was up to $80 billion last year compared with $47 billion in 2008. An agreement on free trade in services and investment could be signed at the New Delhi meeting.

But India’s role in the region is dwarfed by that of China, which enjoyed trade worth a record $363 billion with ASEAN countries in 2011 in an already established free trade area.

“What we need is far greater connectivity,” Khurshid said in an interview with Reuters, mentioning roads, railways and flights as areas needing work. He described a 10-year plan to double the number of diplomats to reflect India’s global ambitions.”

via Amid China tensions, Southeast Asia looks to India | Reuters.

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