Op-Ed Contributors

Regional integration key to growth

By Wang Hui (China Daily)
Updated: 2010-05-24 07:56

"Clear planning, consistent interaction, and concrete projects are key ingredients in successful regional cooperation," Kruger observed.

Since 1992, the UNDP has been involved in the Greater Tumen Initiative in Northeast Asia which includes China, Russia and the ROK, with the Democratic People's Republic of Korea's status as a pending member.

The ADB initiated the GMS in 1992 and Central Asia Cooperation in 1996.

The GTZ is initiating a number of projects for sub-regional cooperation in Asia in the light of experience gained from the integration of the European Union.

Official figures indicate China-ASEAN trade surpassed $192 billion last year, and is growing at an annual rate of 24 to 30 percent. Since the free trade agreement (FTA) came into effect from the beginning of this year, trade volume among the participating countries has gone up significantly.

While strengthening trade ties in traditional fields, the China-ASEAN FTA also opens the door for exploration of new areas. For ASEAN countries, the demand for more goods and services from China's growing middle class indicates more business opportunities, as they will be among the first to cater to this need.

The SCO, grouping China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, came into being in 2001 as a regional platform to address security concerns. "Over the years, regional economic cooperation has thrived to be an important growth pole of the SCO too," said Liu Huaqin, an expert at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM.

In 2008, the entire trade volume among SCO member countries touched $86.8 billion, more than six times the figure in 2001, Liu said. Expanded trade has also made SCO member states each other's major trade partner, she said.

The Guangxi Zhuang autonomous region is also benefiting from the prevailing trend, as it is a stronghold in China's trade ties with its Southeast Asian neighbors.

According to Liu Shusen, head of the region's department of commerce, the region's total economic aggregate saw an annual increase of 12.1 percentage points since 2001 to reach 770 billion yuan ($113.2 billion) in 2009.

Strengthened economic ties also draw countries closer and bridge gaps between Asian countries that are in different development stages. Governments and academicians in Asia now agree that regional integration, which is the key for sustainable development and common prosperity, should progress at an even faster pace.

To this end, Juergen Steiger suggests, China should play a stronger role in facilitating and coordinating provincial participation in sub-regional economic integration.

The slow pace in East Asia integration could be a case in point. While some regions in Japan are all for closer cooperation, the Japanese government's attitude remains lukewarm.

Due to the tensions in the Korean Peninsula, northeast Asian and East Asian cooperation has been slow in recent years, said Jin Qiangyi, director of Yanbian University's Institute of Northeast Asian Studies.

If not for this irritant, northeast Asia could echo Southeast Asia strategically, painting an even brighter picture of regional integration today, the expert said.

(China Daily 05/24/2010 page8)