Regional Synthesis

By+Lan+Xinzhen

The most robust economic region in the world is about to become an even greater engine for growth， as the irresistible trend of economic integration continues in the Asia-Pacific region. The Asia-Pacific is home to 40 percent of the worlds population； represents 57 percent of the global economy； and takes up 48 percent of total trade.

China will work together with regional countries to forge links and confront obstacles. At the just concluded annual session of the National Peoples Congress， Chinese Premier Li Keqiang stated that the country will speed up its “going global” strategy this year， encouraging Chinese enterprises to invest in more overseas projects and accelerate regional interconnections， as well as expand free trade. Other countries are welcome to collaborate with Chinese companies to jointly promote regional prosperity.

A tight-knit market

In 2014， four of the Chinese mainland markets top five trade partners were located in the AsiaPacific： the United States， the Association of Southeast Asian Nations （ASEAN）， Hong Kong of China and Japan.

China and the United States are each others second largest trade partner. China also stands as the largest trade partner of Canada， ASEAN and the Latin-American region. The whole Asia-Pacific region is growing increasingly interdependent via close economic links.

Chinese President Xi Jinping proposed building a common Asia-Pacific dream with the help of Chinas efforts in his keynote speech at the 22nd Asia-Pacific Economic Cooperation （APEC） Economic Leaders Meeting in Beijing last year.

Peng Zhao， Vice Chairman of Guangxi Regional Committee of the Chinese Peoples Political Consultative Conference （CPPCC）， said President Xis speech illustrates Chinas willingness to take on greater international responsibility and provide opportunities to create a prosperous Asia-Pacific region.

Peng said that economic development and the improvement of peoples lives are at the top of the agenda for Asia-Pacific countries， who share much in common in terms of both development strategy and vision. The Silk Road Economic Belt and the 21st-Century Maritime Silk Road Initiatives （the Belt and Road Initiatives） proposed by President Xi in 2013 could thus enhance regional connectivity regarding policies， transportation， trade， currencies and communication. All countries should seek consensus on staging development and creating a mutually beneficial trade environment.

Free Trade Areas （FTAs） present a key method for China to advance economic cooperation with other countries. At present， the China and ASEAN Free Trade Area（CAFTA） is moving along smoothly. China and South Korea have wrapped up FTA talks， and the core negotiations for a China-South Korea-Japan FTA will soon be concluded. China has also signed FTA agreements with a number of Latin American countries， which will significantly boost trade figures. And other countries in the Asia-Pacific have increasingly come to regard China as a trustworthy trade partner， since it seldom puts a political price tag on outbound investment and trade.

In the future， the Chinese economy will play a more important role in promoting regional growth. Chinas outbound investment will also continue to rapidly increase. According to the Ministry of Commerce， China last year invested in over 6，128 entities in 156 countries and regions around the globe， reaching a new record high of $102.9 billion—a year-on-year growth of 14.1 percent from 2013. The paid-in foreign direct investment in China last year was $119.6 billion， a year-on-year growth of 1.7 percent. If including indirect investment， Chinas investment abroad has likely exceeded inbound investment for the first time in 2014. China has become a net capital exporter， with the largest portion of capital going to the United States at a rate of 23.9 percent over 2013.

The Belt and Road Initiatives offer more impetus for Chinas capital to go abroad. A year after the plan was unveiled， China proposed the establishment of the Asian Infrastructure Investment Bank （AIIB） and a Silk Road fund， which aim to provide financial support for partner countries in the areas of infrastructure construction， resource development， industrial and financial cooperation.

At the Beijing APEC meeting， President Xi said that Chinas investment abroad will reach $1.25 trillion in the next decade—a triple growth over last years base. Chinese investment will provide a wealth of opportunities for those markets that are in serious need of funding.

Chinas growing demand for imported goods will boost the export markets of other Asia-Pacific countries. According to China Customs， China imported 12.04 trillion yuan（$1.93 trillion） worth of goods last year. Premier Li said in March that the countrys trade in 2015 could grow 6 percent year on year—meaning imports in 2015 could total as much as 13 trillion yuan （$2.06 trillion）.

In 2014， Chinas rising appetite for imports is a boon for its major trade partners. For the first three quarters in 2014， exports from the EU， the United States and Japan to the Chinese market accounted for 9.5 percent， 7.2 percent and 18.3 percent respectively in their international trade figures.

Ministry of Commerce spokesperson Sun Jiwen said Chinas growing prominence in the global economy is a natural result of the countrys higher stage of economic development. As a global economic powerhouse， China is now poised to bring greater prosperity to the Asia-Pacific region.

Free-ride economics

Xu Xiaolan， Secretary General of the Chinese Institute of Electronics， suggested promoting the development and infrastructure of transnational e-commerce as part of the effort to expand economic connections between China and regional countries.

“By establishing a transnational ecommerce network accompanied by related industrial chain， regional countries can achieve a wider scope of free trade，” said Xu. “The development of transnational ecommerce will directly drive the growth of modern service industries such as logistics， electronic payment and electronic authentication.”

Peng said economies in the Asia-Pacific have unique advantages pertaining to their own industrial structures， making them highly complementary to each other and thus rich with potential cooperation opportunities. Peng suggested that regional countries should deepen the free trade zone strategy by speeding up the establishment of the Regional Comprehensive Economic Partnership （RCEP）—a proposed free trade agreement first raised by ASEAN nations， aimed at facilitating economic integration in the region.

In addition， Peng said， the Asia-Pacific prosperity concerns not only regional economic expansion， but social development as well. Many people in ASEAN nations have long suffered from preventable infectious diseases such as cholera， plague and avian influenza. China should actively participate in setting up a disease prevention and control system to benefit the poverty-stricken areas in Laos， Viet Nam and Myanmar.

Peng called for the establishment of a China-ASEAN regional public health coordination and cooperation mechanism that would integrate the health sectors of all regional countries.

“We can create a coordination mechanism which could take the form of an annual joint conference between China and ASEAN nations on infectious disease prevention and control. Regular sessions could allow for the sharing of information and experiences in combating health problems，” Peng added.

Challenges

Ma Zhiwei， Vice Chairman of the CPPCC Qinghai Provincial Committee， said that the Asia-Pacific prosperity will advance at a varying pace among regional countries due to differences in political systems， culture and values among other unforeseen variables. However， Ma suggested that China promote the comprehensive cooperation of the Asia-Pacific by targeting specific goals for in-depth collaboration in key areas.

Ma noted that the United States has proposed advancing cooperation with Central and South Asian countries through counter-terrorism mechanisms as well as deepening bilateral ties with those countries， in an apparent attempt to contain China and Russia. Russia， meanwhile， is aiming to create a Central Asian Union by integrating the Commonwealth of Independent States through the Eurasian Economic Community and Collective Security Treaty Organization. In addition， both Indias Look West Strategy and Irans claiming of the Caspian Sea as its backyard are seen as responses to Chinas rising economic status.

But the Belt and Road Initiatives reflect the peaceful nature of Chinas diplomacy. China can use the initiatives as communication and cooperation channels to further strengthen all-around exchanges with the United States and other Asia-Pacific countries in the fields of politics， economy， culture and military， thereby deepening mutual trust and understanding， Ma said.

At present， the “three forces” of terrorism， extremism and separatism have run rampant in Central Asia， leaving some regional countries in turmoil. The territorial dispute between India and Pakistan has the potential to trigger a military clash at any moment. With the additional outside interference of various political forces， these destabilizing factors pose serious security threats to China and other regional countries. Chinas Belt and Road Initiatives could thus play a role in eliminating these risks by both promoting regional trade and strengthening exchanges between different nations and cultures—a plan that could eventually enhance regional security and stability by helping to eradicate terrorism， extremism， separatism and other emerging global threats.