CHAPTER I TRADE AND INVESTMENT
The year 2014 marks the beginning of the “Diamond Decade” of ASEAN-China Strategic Partnership. The past decade witnessed the tremendous achievement of the ASEAN-China economic and trade cooperation. The ASEAN and China leaders have set new targets of 1 trillion USD for bilateral trade for the year 2020, and an additional two-way investment of USD 150 billion in the next seven years.
With the view to putting to practice the above important consensus among the leaders and facilitating the connectivity in the area of the ASEAN-China economic and trade cooperation, ACC kept dedicating itself to the promotion of the ASEAN-China trade and investment cooperation with joint efforts of all parties concerned. Following the successful establishment of the ASEAN-China Products Trade and Exhibition Centre (ACPTC) in Yiwu, ACC started its attempt to set up new ASEAN-China Products Trade Centres in Linyi, Shandong Province; Deyang, Sichuan Province; Fuyang, Anhui Province. ACC has also widened the channels of sectoral matching and enlarged the ASEAN-China Investment Consortium, built up the information bank and database on ASEAN-China trade and investment, shaped ASEAN-China Watch and 21 Survey Consultancy[1] into think tanks on the research in ASEAN-China economic cooperation and made substantial support to China’s investment to ASEAN.
ASEAN-China Sectoral and Regional Cooperation
1. Background
The growing economic cooperation and strong economic complementarity between ASEAN and China have engendered the zeal for further cooperation between enterprises of both sides, which expect ACC to set stages for cooperation. Through its network with Chinese business circles and local governments, ACC organized, co-organized and/or participated in the events in various sectors and in many Chinese cities to raise awareness of ASEAN-China cooperation and benefit the enterprises to the full. The approved budget for the project is 150,000 RMB.
2. Activities
(1) On 30 October 2013, ACC hosted the “ASEAN-China Business Salon: Indonesia-China Agriculture Cooperation”. Officials from the Ministry of Agriculture and agricultural officials from nine provinces including Sulawesi, Maluku Utara, Papua, Sumatra, Aceh, Riau, and companies had a business matching with 30 Chinese agricultural agencies on the cooperation in crop farming, sea farming, agricultural machinery, agricultural technology, and husbandry.
(2) On 21 November 2013, ACC and the International Cooperation Centre of National Development and Reform Committee of China (NDRC) co-hosted the ASEAN-China Green Economy and Sustainable Development Cooperation Forum in Beijing. Representatives from the Ministry of Industry of Indonesia, the Ministry of Industry and Commerce of Laos, the Ministry of Industry of Myanmar, the Ministry of Science and Technology of Vietnam, Bureau for the Development of SMEs of Malaysia attended the Forum with speeches. Over 220 representatives from the concerned ministries of China and enterprises attended the Forum. Commercial Counselors from Cambodian, Indonesian, Lao, Malaysian, Myanmar, Philippine, Singaporean, Thai and Vietnamese Embassies in Beijing were also present. The attendants had discussions on green economy, new energy, and sustainable development in the forum.
(3) From 29 November to 1 December 2013, the China General Chamber of Commerce held the China Market Western Development Forum in Deyang, Sichuan Province. ACC attended the forum and made a presentation on the progress of the ASEAN and China economic and trade cooperation. ACC also held discussions with the organizations concerned on setting up an ASEAN Products Trade Centre in Deyang.
(4) On 13 March 2014, Secretary-General (SG) Ma Mingqiang met with Dr. Hans Friederich, Director General of the International Network for Bamboo and Rattan (INBAR). Both sides expressed their readiness to work closely for further strengthening the ASEAN-China cooperation in the area of bamboo and rattan.
(5) On 18 March 2014, ACC and the China Council for the Promotion of International Trade (CCPIT) Shandong Sub-council, Shandong Economic and Information Technology Committee and Shandong Machinery Industry Association, co-organized the 9th China (Shandong) International Equipment Manufacturing Industry Exposition in Jinan, Shandong Province. Representatives and enterprises from ASEAN countries attended the Exposition.
(6) On 6 May 2014, ACC hosted the visit of a Delegation of the Global Coalition of Efficient Logistics (GCEL) Leadership, headed by Dr. Surin Pitsuwan, Chairman of GCEL Asia Advisory Board and former ASEAN Secretary-General. During the meeting, SG Ma Mingqiang and Dr. Surin both agreed that efficient logistics should play a more important role in trade and investment between ASEAN and China.
(7) From 5 to 8 May 2014, SG Ma Mingqiang made an official visit to Linyi and Tai’an, Shandong Province, to explore the strengthening of cooperation of trade and investment between ASEAN countries and Shandong Province. Mr. Ma had also held discussions with the local authorities on setting up a ASEAN Products Trade Centre in Linyi City, where the biggest commodity market in Northern China is located.
(8) On 30 June 2014, ACC reached a consensus with the Foreign Affairs Office of Shandong Provincial People’s Government on reaping the comparative advantage between Shandong and the ASEAN Member States, strengthening cooperation between Shandong and ASEAN in agriculture, industry, mining, fishery, and forestry, and encouraging enterprises to make investments and expansion in ASEAN.
(9) From 30 August to 2 September 2014, ACC, the China National Coal Industry Association and the Tai’an Municipal government co-organised the 2014 China (Mount Tai) International Mining Equipment & Technology Exhibition (CIMETE). Commercial Counsellors from seven ASEAN Embassies in China and a number of mining companies from ASEAN attended the Exhibition. A business matching between the Commercial Counsellors and Chinese entrepreneurs, followed by a field trip to local enterprises interested in investing in ASEAN.
(10) In mid-September 2014, as a co-sponsor, ACC officials attended the 11th China-ASEAN Expo Business Networking and the China-ASEAN Industrial and Commerce Forum held within the framework of the 11th CAEXPO in Nanning. Both events helped to push forward the cooperation in market access, market supervision, safeguarding of consumers' rights and interests, protection of trademarks between the authorities concerned in ASEAN and China, and provide better service for the facilitation and regulation in investment and trade.
3. Outcomes and Effects
The above events and activities have significantly raised the awareness among ASEAN and Chinese enterprises of the comparative advantages and investment environment of individual countries. They served as platforms for direct dialogues between the businesses and the central and local governments of China and ASEAN. Through these activities, businesses of both sides have established contact with their partners, and built up confidence for cooperation in the areas of agriculture, sea-farming, environmental protection, handicrafts, mining, energy (traditional and new), machine building, transportation and logistics.
Investment Missions to the ASEAN Member States and Industrial Parks
1. Background
ASEAN has been valued as an ideal investment destination by Chinese investors. The two-way investment between ASEAN and China has kept the momentum since 2013. In September 2013, Chinese Premier Li Keqiang’s proposed target of an additional 150 billion US dollars in the two-way investment in the next eight years fueled much enthusiasm for cooperation between Chinese and ASEAN businesses.
Most potential Chinese investors are still underserved with the knowledge of the ASEAN markets and investment policies and regulations.
From the end of 2013, ACC organised four investment missions from China to four ASEAN countries. The approved budget for the project is 400,000 RMB.
2. Activities
(1) From 2 to 10 November 2013, SG Ma Mingqiang headed a delegation to visit Indonesia and held a meeting with Mr. Mahendra Siregar, Chairman of Indonesia Investment Coordinating Board (BKPM). They exchanged views on expanding Chinese direct investment to ASEAN, especially Indonesia, and reached consensus to carry out cooperation in assuring the quality and the progress of major projects.
(2) From 11 to 13 March 2014, ACC members attended the 14th Working Group Meeting on Economic Cooperation (WGEC) for ACFTA in Chengdu, Sichuan Province. ACC’s pledge of continued activities to serve as a promoter and facilitator of trade and investment between ASEAN and China was highly acclaimed in WGEC’s summary decision.
(3) On 14 April 2014, SG Ma Mingqiang met with Mrs. Yang Xinliang, Deputy Director General of the International Finance Department of China Development Bank (CDB) and had a discussion on clearing form, facilitation of financing for SMEs, and support agricultural cooperation between ASEAN and China.
(4) On 17 June 2014, SG Ma Mingqiang met with Dr. Laohoua CHEUCHING, Deputy Director General of Foreign Trade Policy Department, Lao Ministry of Industry and Commerce. They had a discussion on the promotion of investment in underdeveloped ASEAN countries, the launch of SMEs’capacity building projects, financing facilitation and technology transfer in the process of upgrading ASEAN-China FTA.
(5) On 15 August 2014, ACC organised a tour for Ambassadors of ASEAN Committee in Beijing (ACB) to SANY Heavy Industry Group, China’s largest engineering machinery producer. ASEAN is the fastest-growing market for SANY, which has set up factories in a number of industrial parks in ASEAN countries. The Ambassadors all hoped that SANY will make further contributions to ASEAN economy by increasing its investment in ASEAN.
(6) From 19 to 24 August 2014, ACC organised a Chinese Trade and Investment Mission to Indonesia. The members of the mission consisted of business people representing the areas such as agriculture, real estate, oil and gas, infrastructure, sea farming, mining, logistics and environment sectors. The delegation had two presentations of business potentials and business matchings with the Indonesian Young Entrepreneurs Association, and Indonesian Chamber of Commerce and Industry. Junaidi Hamsyah, Governor of Bengkulu Province, Bima Arya Sugiarto, Mayor of Bogor, and the Mayor of Tual (Southeast Maluku) and over 100 Indonesian business people attended the events. The Chinese delegation also had a meeting with the Indonesian Investment Coordinating Board.
(7) From 5 to 9 September 2014, the Lao Ministry of Industry and Commerce and the Department of Commerce of Guangxi Province, China, held the first Laos-China (Guangxi) Trade Fair with the support and coordination of ACC. ACC officials who attended the Trade Fair networked with the Lao business circles and visited relevant government agencies in Laos to brief on ACC’s work in trade and investment. During the meeting, ACC and Lao National Chamber of Commerce and Industry (LNCCI) agreed on signing a MOU for further cooperation.
(8) On 16 September 2014, SG Ma Mingqiang led members of the ASEAN-China Investment Consortium to meet with H.E. Mme. Khemmani Pholsena, Lao Minister of Industry and Commerce (MOIC), in Nanning during her visit to China to attend the 11th CAEXPO. Both sides agreed on strengthening cooperation in pragmatic projects in areas such as crop farming, down-stream processing, industrial investment, logistics and border trade in the process of upgrading ASEAN-China FTA.
3. Outcomes and Effects
The series of missions and events organised by ACC helped the enterprises of ASEAN and China to have a better understanding of the demands and expectations of their business partners, and the investment policies and environment in both China and ASEAN Member States. These activities strengthened the confidence of Chinese investors, and provided invaluable opportunities and platforms for the Chinese and ASEAN business circles to network and interact with each other. Many partnerships have been forged through face-to-face talks with relevant government organisations. In this way ACC have identified reliable investment targets for potential investors. Many projects initiated in the investment missions in cassava processing, petroleum and natural gas, logistics, real estate, construction of bonded zone, garbage power, forestry, crop farming, aquaculture are progressing smoothly.
Upgrading and Setting up of ASEAN Products Trade Centres
1. Background
The strong economic complementarity and comparative advantage existing between China and ASEAN carry huge potentials in trade and investment yet to be explored to the full. The two-way trade between ASEAN and China reached 443.6 billion US dollars in 2013. In the same year, Chinese Premier Li Keqiang proposed that the two-way trade shall reach 1 trillion US dollars by 2020.
The Chinese customers have an ever-increasing interest in ASEAN products. The ASEAN-China Products Trade and Exhibition Centre (ACPTC) set up by ACC in the Yiwu International Trade Mart has played a positive role in giving ASEAN products access to the Chinese market. The establishment of more ASEAN Products Trade Centres in China will further promote the trade cooperation between China and ASEAN.
The approved budget for the project is 200,000 RMB.
2. Activities
(1) On 19 December 2013, the ASEAN-China Products Trade Centre was inaugurated in Yiwu, Zhejiang Province. SG Ma Mingqiang, Mr. Tang Lilu, Vice Chairman of the Chinese People’s Political Consultative Conference of Zhejiang Province, Mr. Arthayudh Srisamoot, DG of Department of ASEAN Affairs of Ministry of Foreign Affairs of Thailand, and Mr. He Meihua, Mayor of Yiwu, jointly unveiled the plate of the Centre. H.E. Mme. Yang Xiuping, Chinese Ambassador to ASEAN, H.E. Mr. Ngurah Swajaya, Indonesian Permanent Representative to ASEAN, H.E. Mr. Somdy Bounkhoum, Lao Ambassador to China, H.E. Mr. Tan Heng Seng, Singaporean Permanent Representative to ASEAN, and representatives of Ministry of Foreign Affairs and Trade of Brunei Darussalam and Embassy of the Philippines in China, together with more than 200 representatives from business communities, attended the inauguration.
(2) From 7 to 9 May 2014, Mr. Mouvixay Palee, Deputy Director of Trade and Investment Division of ACC, led a delegation to Linyi City, Shandong Province, and held talks with Mr. Bian Feng, Vice Mayor of Linyi City. Both sides exchanged views on the establishment of the ASEAN Products Trade Centre in the Linyi Wholesale City, the largest of its kind in North China with an annual trade volume of RMB over 200 billion. This visit marked the start of working out a MOU of setting up the Trade Centre in Linyi.
(3) From 30 to 31 October 2014, SG Ma Mingqiang attended the 3rd China Marketing Conference in Qingdao City, Shandong Province of China and signed a MOU with the China General Chamber of Commerce on setting up two trade centres in Fuyang, Anhui Province, and Deyang, Sichuan Province.
3. Outcomes and Effects
The ASEAN Products Trade Centre is not only a never-ending expo for ASEAN products but also an ideal platform to showcase, retail and wholesale them. As of now, traders from eight ASEAN countries including Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Viet Nam have set up shops at ACPTC, selling nearly 1000 products and commodities. The shops of Brunei Darussalam and Philippines are in active preparation. The traders now have a 100 million RMB worth of stock with a sales volume of 15 million RMB as of July 2013. The ASEAN traders have recruited more than 200 franchisees and wholesalers in China. Some ASEAN traders have become reputable wholesalers for supermarkets and departments stores in the vicinity.
ACPTC has played a positive role in promoting trade between ASEAN and China. Its practical achievements have been highly acclaimed by ASEAN traders. In January 2014, Mr. Wang Yang, Vice Prime Minister of China, affirmed ACPTC’s achievements after his inspection of the site.
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Yiwu ASEAN-China Products Trade and Exhibition Centre (ACPTC) |
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ASEAN country shops |
8 |
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Franchisees and wholesalers |
More than 200 |
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Sales volume |
15 million RMB |
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Stock value |
Worth 100 million RMB |
Analysis of ASEAN Market Prospects and Information Bank
1. Background
Information plays a vital role in the pragmatic cooperation between ASEAN and China. As a one-stop information centre, ACC should follow the stipulations of the MOU on its establishment to create a database on trade and investment, carry out assessment on the market prospects and make analyses and proposals accordingly.
The approved budget for the project is 300,000 RMB.
2. Activities
(1) ACC has undertaken the project of ASEAN-China Watch, a monthly publication in Chinese since the end of 2012. The publication mainly focuses on the trade and investment, ASEAN Macro & Business Briefing, ASEAN-China Economic & Trade Cooperation, China’s Overseas Investment in ASEAN, Insight on ASEAN and Knowledge in ASEAN. The publication provides an insight and analysis of on-going cooperation projects, highlights of the benefit of ACFTA, investment environment, economic policies and trade opportunities in ASEAN. Over 30 issues of ASEAN-China Watch have been published by October 2014.
(2) In June 2014, ACC entered into discussion with Aivi investment Consultant (21 Survey) Co. to explore cooperation on the joint publications of Guidelines to Business and Investment Environment in Individual ASEAN Countries and basic research reports on sectoral investment environment. The publications will combine the research on the investment environment of various fields, feasibility studies of individual projects, analyses of market prospects and interpretations of relevant investment policies.
3. Outcomes and Effects
As a provider of detailed studies and analyses on the investment environment, market potentials and trends, ASEAN-China Watch is widely distributed among relevant government agencies both at the central and provincial levels, ASEAN Embassies, the private sector and stakeholders in China. The in-depth yet practical information contained therein makes it a popular publication among Chinese investors and traders. ACC will also forge the forthcoming Guidelines to Business and Investment Environment in Individual ASEAN Countries into guiding documents and valuable reference books to give Chinese investors a better understanding of the investment environment of ASEAN countries and help them make right decisions in investments.