"China is an open market": China's Commerce Minister

by Zhu Li, Shi Xianzhen

BANGKOK, Aug. 15 -- The signing of

China-ASEAN Investment Agreement shows the international community that China,

not only by words but by action, supports trade liberalization and opposes trade

protection, China's Commerce Minister Chen Deming told Xinhua here on Saturday.

"China is an open market," Chen told the reporter on

the sidelines of the 41st ASEAN Economic Ministers' meeting and related the

meetings, where he and the economic ministers from 10 ASEAN (Association of

Southeast Asian Nations) member states just signed the Agreement earlier

Saturday.

The signing of the Investment Agreement, together

with already-signed China-ASEAN agreements of the trade in goods and services,

completed the negotiation process of China-ASEAN Free Trade Area (FTA), which is

to be realized by January 1, 2010.

"The China-ASEAN FTA will be an advanced FTA that

covers an extensive area of 13,000 thousand square kilometers with 1.9 billion

population and more than 6 trillion U.S. dollars of GDP," said Chen.

He said that amid an ongoing global financial and

economic crisis, the establishment of this FTA, will convey a positive message

to the rest of the world that China and ASEAN will keep going along the road of

trade liberalization.

The FTA is the first one China ever negotiated and it

has been almost 10 years since the idea was first proposed by then Chinese Prime

Minister Zhu Rongji in 2000. And also as the first FTA that ASEAN as a bloc ever

negotiated, it will boost the process of ASEAN Community and provide momentum

for the economic integration of East Asia, the Commerce Minister said.

After the realization of the ASEAN-China FTA at the

beginning of 2010, Chen said, more than 90 percent of bilateral trade in goods

between China and six older members of ASEAN, covering more than 7,000 items,

will enjoy zero tariff; the two sides will grant each other market access

opportunities higher than WTO standard interms trade in services; and the mutual

investment will be under sounder protection according to the newly-signed

Investment Agreement.

Chen believed that people will benefit from the

establishment of the FTA, saying "for example, the tariff on tropical fruits

imported from ASEAN will drop from the original 20 percent to zero, which means

Chinese people can enjoy them with lower price."

Asked whether he himself will enjoy some of the

fruits, the minister said with a smile, "I may try some Dragon fruit (Pitaya)."

As far as bilateral trade between China and ASEAN is

concerned, Chen thinks it is a "win-win" cooperation since the economy of China

and 10-nation bloc is "highly complementary", though he said China follows a

principle of "Give More, Take Less," showing flexibility on the trade agreement

with some least developed ASEAN countries.

Chen also mentioned the 10-billion-dollar China-ASEAN

Investment Cooperation Fund and the 15-billion-dollar China-ASEAN loan package

that the Chinese government proposed in April. "With that fund, we have had some

investment direction in mind," he said, adding that one of funding priority will

be the construction of infrastructure like railways, roads and pipelines what

help boost the Sino-ASEAN connection.

Mentioning the prospect of setting up East Asia FTA,

Chen expressed his optimism. "Since the idea was raised by Prime Minister Wen

Jiabao in 2004, experts from the 13 countries have undertaken some research and

reached positive conclusion." So far, besides China-ASEAN, the ASEAN-ROK and

ASEAN-Japan FTA negotiation also finished. Chen said the experts could further

discuss the possibility of the integration of the three ASEAN+1 FTAs.

The completion of China-ASEAN FTA negotiation

demonstrates China firmly practices the trade liberalization and opposes trade

protection "as the global trade is in the midst of a tough time," Chen said,

citing that Chinese delegation also went to Europe several times early this year

for immense procurement.

Chen led the China's procurement delegation to Europe

in February, sealing deals amounting to some 15 billion U.S. dollars with the

four European countries.