ASEAN, China Sign Key Economic Deal

CEBU, Philippines, Jan 14, 2007 (AFP) - China and ASEAN signed a landmark economic cooperation deal Sunday that will further open market access in key services sectors. The deal was signed as Chinese Premier Wen Jiabao met the 10 leaders of the Association of Southeast Asian Nations on day two of ASEAN's annual summit meetings. The accord, which comes into effect later this year, will liberalise sectors ranging from tourism and telecoms to energy and computers, as China looks to bolster its economic and trade clout in the region. Wen described the agreement as a "major result for our economic and trade cooperation". "We are friendly neighbours and also important strategic partners," he said. "China's development cannot be separated from ASEAN's, and ASEAN's also needs China." The agreement will open the doors to China's multi-billion-dollar service industries including banking, information technology, real estate, health, engineering, education, transport and construction. Lu Jianren, an economist with the Chinese Academy of Social Sciences (CASS), told a seminar in Beijing recently that "both China and ASEAN have their respective edges" when it comes to services. "China is competitive in computer services, Singapore in financial, legal and exhibition services and Thailand in tourist services," he said. ASEAN and China signed a framework agreement on comprehensive economic cooperation in 2002 and are expected to form a bilateral free trade area by 2010. Together they have a combined economic output of two trillion dollars and trade estimated at 1.2 trillion dollars, the Manila-based Business World newspaper said recently. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. vy/kw/mc/sst

ASEAN-SUMMIT-CHINA-ECONOMY-TRADE - 01/14/2007 10:54 - AFP