China-ASEAN Free Trade Area Forum Opens in Nanning

Opportunities and challenges of the newly-established China-ASEAN Free Trade Area are to be discussed during a forum that has started in China's Nanning city.

Experts say that the new regional trade initiative, which is the world's largest free trade area of developing countries, will further enhance regional economic integration.

CRI's Chen Xi has more:

Reporter:

Chinese enterprises are set to benefit substantially from the establishment of this large free trade area.

Yi Xiaozhun, Vice Minister of Commerce of China, made the remarks during the opening of the forum in China's Nanning, the capital city of Guangxi Zhuang Autonomous Region.

He encouraged Chinese businesses to make full use of the infrastructure and financial support provided by government.

"At present, Chinese enterprises are willing to look for growth opportunities since the world economy has started to improve. To meet the needs of expanding economic relations, both sides need to make full use of government funding and other resources to accelerate the development of infrastructure and including of roads, railway, air and information."

As a result of the free trade area, China and the six ASEAN members of Brunei, the Philippines, Indonesia, Malaysia, Thailand and Singapore, have slashed the average tariff on 90 percent of imported goods.

By 2015, the policy of a zero-tariff rate is expected to extend to the four new ASEAN members, Cambodia, Laos, Myanmar and Vietnam.

Pushpanathan Sundram, deputy secretary-general of ASEAN, says China and other ASEAN countries should continue to push forward the liberalization process of trade and investment.

"Something needs to be done regarding non-tariff barriers and other forms of import control measures. Governments should also insist measures to institute protectionism measures, while continuing to provide support to vulnerable sectors. Appropriate adjustment and accommodation is also necessary for businesss in ASEAN and China to benefit from the China-ASEAN Free Trade Area"

Huang Mengfu, vice chairman of the National Committee of the Chinese People's Political Consultative Conference or CPPCC, also makes three suggestions for the free trade area.

"Firstly, we should strengthen communication at all levels, enhance mutual political trust, further non-governmental exchanges, and build relationships among people from all nations. In addition, we should deepen economic cooperation, expand the scale of trade and investment, and actively promote sub-regional cooperation. And finally, we should increase cultural exchanges to deepen the China-ASEAN strategic partnership."

Over 400 officials, scholars and business executives attend the on-going forum, offering advice on the free trade area's further development.

China and ASEAN launched a cooperation dialogue in 1991 and signed the China-ASEAN Framework Agreement on Comprehensive Cooperation in 2002.
Figures show that the newly-established FTA covers a population of 1.9 billion and accounts for about 4.5 trillion U.S. dollars in trade volume.

Chen Xi, CRI News.