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ASEAN and China

ASEAN-China Relations

 

(As of April 2015)

 

In 1991, ASEAN and China launched the dialogue process. In 1996, China became full dialogue partner of ASEAN. In 1997, the 1st ASEAN-China Informal Summit was held in Kuala Lumpur, Malaysia, and the Leaders announced the establishment of a 21st century-oriented partnership of good neighborliness and mutual trust. In 2003, ASEAN-China relations were upgraded to be strategic partnership. In 2013, ASEAN and China celebrated the 10th anniversary of the ASEAN-China strategic partnership. ASEAN-China relations of a Gold Decade have yielded abundant and tangible achievements, benefiting the peoples of both sides.

 

The year 2014 marked the ASEAN-China Cultural Exchange Year, and also the first year of a Diamond Decade of ASEAN-China relations. ASEAN and China launched negotiations on an upgrading of the ASEAN-China Free Trade Area (CAFTA) and the Memorandum of Understanding on the Establishment of Asian Infrastructure Investment Bank (AIIB) was signed. ASEAN-China strategic partnership stands at an even higher starting point leading to broader and deeper cooperation.

 

【Cooperation Mechanism】

 

1. The ASEAN-China Summit at the level of leaders. The Summits draw blueprint and chart the course for the development of ASEAN-China relations. Since 1997, ASEAN and China have convened 17 Summits (The 17th ASEAN-China Summit was held on 13 November 2014 in Nay Pyi Taw, Myanmar). Besides, several special leaders' meetings were held between ASEAN and China, including the Special ASEAN-China Leaders Meeting on SARS in 2003 and the Commemorative Summit Marking the 15th Anniversary of ASEAN-China Dialogue Relations in 2006.

 

2. Ministerial Meetings. ASEAN and China have established 11 ministerial meeting mechanisms, involving different authorities concerned, namely foreign affairs, commerce, culture, transport, customs, procurator, health, telecommunications, information, quality inspection and quarantine, and counter transnational crimes.

 

3. Senior Officials’ Meetings (SOM). Usually senior officials’ meetings are convened before the ministerial meetings, so as to make preparation for the latter. SOMs are attended by senior officials of different authorities concerned from ASEAN and China. For example, by April 2015, ASEAN-China Senior Officials Consultations (ACSOC) have been held for 20 times, attended by senior officials from the Foreign Ministries of ASEAN Member States and China, as well as representatives from the ASEAN Secretariat. ASEAN-China SOC focuses on reviewing and future direction of ASEAN-China relations, and makes preparation for ASEAN-China Foreign Ministers’ Meeting.

 

4. The ASEAN-China Joint Cooperation Committee (ACJCC). ACJCC is held annually in Jakarta, Indonesia, with attendance of the ASEAN Committee of Permanent Representatives (CPR) and Chinese Ambassador to ASEAN. ACJCC aims to promote ASEAN-China functional cooperation in various fields. By April 2015, ACJCC has been held for 15 times.

 

【ASEAN-China FTA】

 

ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation in November 2002, kicking off the process of building ASEAN-China Free Trade Area (CAFTA). In January 2010, CAFTA was fully established. In 2014, both sides launched negotiations on an upgrading of CAFTA, focusing on key areas of trade in goods, service trade, dispute settlement and investment.

 

According to statistics from the General Administration of Customs of China, ASEAN-China two-way trade grew by 8.3% to 480.4 billion USD in 2014. China’s export to ASEAN reached 272.1 billion USD, while ASEAN’s export to China reached 208.3 billion USD. China is ASEAN’s largest trade partner, and ASEAN is China’s 3rd largest trade partner.

 

ASEAN and China are determined to push their trade volume to 500 billion USD by 2015 and 1 trillion USD by 2020.

 

According to statistics from the Ministry of Commerce of China, ASEAN-China two-way investment totaled 12.18 billion USD from January to December 2014, in which China’s investment to ASEAN reached 5.88 billion USD, growing by 2.5% over the same period last year and ASEAN’s investment to China reached 6.3 billion USD, decreasing by 24.53%. By December 2014, ASEAN-China mutual investment total reached 126.95 billion USD, in which China’s investment to ASEAN total reached 35.21 billion USD, and ASEAN’s investment to China total reached 91.74 billion USD.

 

Both sides set two-way investment goal at 150 billion USD from 2013 to 2020.

 

【Functional Cooperation】

 

ASEAN and China have been cooperating in over 20 areas, including connectivity, finance, maritime cooperation, agriculture, information and communication technology, human resource development, Mekong Basin Development, investment, energy, transport, culture, public health, tourism and environment.

 

China set up 10 billion USD ASEAN-China Investment Cooperation Fund, aiming to give financial support to major infrastructure projects in ASEAN Member States. China also set up ASEAN-China Cooperation Fund, ASEAN-China Public Health Cooperation Fund and ASEAN-China Maritime Cooperation Fund (3 billion RMB) to support functional cooperation in related areas. In 2014, China announced an establishment of Silk Road Fund of 40 billion USD as well as Asian Infrastructure Investment Bank (AIIB) with its initial funding of 50 billion USD to support connectivity and infrastructure development in the region.

 

Among the highlights of ASEAN-China cooperation, ASEAN-China Expo (CAEXPO) has been held in Nanning, Guangxi Zhuang Autonomous Region for 11 times. ASEAN-China Education Exchange Week has been held in Guiyang, Guizhou Province for 7 times.

 

In November 2011, ASEAN-China Centre (ACC), the only inter-governmental organization between ASEAN and China, was inaugurated during the 14th ASEAN-China Summit. ACC has been mandated to be a one-stop information and activities centre to promote ASEAN-China cooperation in trade, investment, education, culture and tourism.

 

In 2014, mutual visitations between ASEAN and mainland China reached over 17.6 million, in which mainland Chinese visitations to ASEAN stood at 11.4 million and ASEAN visitations to mainland China stood at 6.2 million.

 

According to statistics from the Ministry of Education of China, in 2014, 377,054 foreign students were studying in China. The top four ASEAN countries with largest number of students in China were Thailand (21,296), Indonesia (13,689), Vietnam (10,658) and Malaysia (6,645).

 

【The 17th ASEAN-China Summit】

 

On 13 November 2014, the 17th ASEAN-China Summit was held in Nay Pyi Taw, Myanmar.

 

H.E. Chinese Premier Li Keqiang expressed that the Chinese government takes ASEAN as a priority in its neighborhood diplomacy and firmly supports the building of the ASEAN Political-Security Community, Economic Community and Socio-Cultural Community as well as ASEAN centrality in East Asia cooperation. China will work with ASEAN countries to expand practical cooperation in all areas, continue to deepen the integration of interests of the two sides on the basis of the 2+7 cooperation framework and build a closer community of common destiny between China and ASEAN with a view to taking our relations to a new height.

 

H.E. Chinese Premier Li Keqiang made 6 proposals for the future development of ASEAN-China relations: First, to develop a grand strategy for the growth of ASEAN-China relations. Both sides should start formulating as early as possible the third plan of action (2016-2020) of the ASEAN-China Joint Declaration on Strategic Partnership for Peace and Prosperity. China is willing to negotiate and conclude with ASEAN a treaty of good-neighborliness, friendship and cooperation between China and ASEAN countries. Second, to build an upgraded China-ASEAN Free Trade Area and conclude the negotiations before the end of 2015. In the coming three years, China will set aside 30 million RMB (4.9 million USD) in support of economic and technical cooperation under the FTA framework; Third, to speed up the building of the basic connectivity network. The two sides may continue to jointly promote the early operation of the Asian Infrastructure Investment Bank to provide financial support to infrastructure development in the region; Fourth, to foster new highlights in maritime cooperation. China proposed 2015 be designated as the year of China-ASEAN maritime cooperation; Fifth, to ensure "double security" in traditional and nontraditional areas; Sixth, to actively explore new areas of cooperation in people-to-people exchanges, science and technology and environmental protection.

 

The 18th ASEAN-China Summit will be hosted by Malaysia, as the current ASEAN Chair, tentatively in November 2015.

 

_____________________________________________________

ACC is supervised and advised by the Joint Executive Board (JEB). The JEB comprises the ASEAN Committee in Beijing (ACB), which is composed of 10 ASEAN Ambassadors to China, and representatives from related Chinese agencies.

 

 

 

Key Indicators on ASEAN-China Relations (2014): Trade
Category

Contents

Ranking

Remarks

ASEAN-China Trade

480.39 billion USD

(ASEAN Importing 272.07 billion USD /Exporting 208.32 billion USD)

China is ASEAN's largest trade partner, and ASEAN is China's 3rd largest trade partner.

Increased by 8.3% from 2013

 China's Trade with Malaysia

 102.02 billion USD


 (Malaysia Importing 46.36 billion USD /Exporting 55.66 billion USD)

 1st among ASEAN Member States

Increased by 3.8% from 2013
China's Trade with Vietnam

83.64 billion USD

(Vietnam Importing 63.74 billion USD /Exporting 19.9 billion USD)

2nd

Increased by 27.7% from 2013 
China's Trade with Singapore

79.74 billion USD

(Singapore Importing 48.91 billion USD /Exporting 30.83 billion USD)

3rd

Increased by 5% from 2013
China's Trade with Thailand

72.67 billion USD

 (Thailand Importing 34.29 billion USD /Exporting 38.38 billion USD) 

 4th

Increased by 2% from 2013
China's Trade with Indonesia

63.58 billion USD

(Indonesia Importing 39.06 billion USD /Exporting 24.52 billion USD)

 5th

Increased by 7% from 2013
China's Trade with the Philippines

44.45 billion USD

(the Philippines Importing 23.47 billion USD /Exporting 20.98 billion USD)

6th

Increased by 16.8% from 2013

 

Source: General Administration of Customs of China

 

Key Indicators on ASEAN-China Relations (2014): Investment
By December 2014, ASEAN-China Mutual Investment Total:126.95 billion USD 

ASEAN's Investment to China Total:91.74 billion USD

China's Investment to ASEAN Total:35.21 billion USD

From January to December 2014, ASEAN-China Investment Total:12.18 billion USD
ASEAN's Investment to China Total in 2014:6.3 billion USD

China's Investment to ASEAN Total in 2014:5.88 billion USD

 

 

Source: Ministry of Commerce of China

 

 

Key Indicators on ASEAN-China Relations (2014): People-to-People Exchanges
ASEAN-China Visitors Total:17.6 million visitors

China to ASEAN (First Stop) Total:

 
11.4 million visitations

ASEAN to China Total:

 
6.2 million visitations

Rank

 Country

Rank

Country

1st


among ASEAN Member States

Thailand

(approx. 4.4 million)

1st


among ASEAN Member States

Vietnam

(approx. 1.3 million)

2nd

Vietnam

(approx. 1.7 million)

2nd

Malaysia

(approx. 1.13 million)

3rd

Singapore

(approx. 1.4 million)

3rd

Singapore

(approx. 1 million)

 From Chinese source

 

 

 Key Indicators on ASEAN-China Relations (2014): Student Exchanges

 Chinese Overseas Students Around the World

 Foreign Students to China

 Total

 approximately459,800 students

 Total:377,054 students

 Rank

 Country

 Students (Persons)

 1st among Foreign Countries

 ROK

 62923

 2nd

 United States

 24203

 3rd

 Thailand

 21296

 4th

 Russia

 17202

 5th

 Japan

 15057

 6th

 Indonesia

 13689

 

 Chinese Students to ASEAN

 ASEAN Students to China

data not available 

 Rank

 Country

 Students (Persons)

 1st among ASEAN Member States

 Thailand

 21296

 2nd

 Indonesia

13689

 3rd

 Vietnam

 10658

 4th

 Malaysia

 6645

 

Source: Ministry of Education of China