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Xu Ningning: Industrial Cooperation Conducive to China-ASEAN Relations

Copyfrom:China International RadioPost Time:2017-05-24 17:08:08

September 21, 2015 CRI: At the opening ceremony of the 12th CAEXPO on September 18, the Chinese Vice Premier Zhang Gaoli proposed that China and ASEAN should intensify international production capacity cooperation. It is the first time that China make production capacity cooperation a separate cooperation item under the bilateral cooperation framework between China and ASEAN. CABC Executive President Xu Ningning said that international production capacity cooperation can be defined as industry cooperation when interviewed by CRI Online. Mr. Xu indicated that China-ASEAN industry cooperation has strong complementarity and great development potential. China and ASEAN should strengthen industry cooperation, which will contribute to their overall relationship development. 

Since the establishment of CAFTA in 2010, China-ASEAN economic and trade relationship have been deepened constantly. President Xu Ningning said that 60% of China’s overseas investment were in ASEAN countries. With regard to favorable conditions of China-ASEAN industry cooperation, Xu Ningning said: “China and ASEAN have the policy advantage of established FTA and mutual opening market, which is conductive to promote enterprises and industries cooperation. And we also have geographical advantage as neighbors. Under such circumstance, bilateral industry cooperation is put into agenda.” 

In addition to policy and geographical advantages, Chinese industry developed in a fast speed since reform and opening-up in general, sound industry system and strong industry complementarity with ASEAN are also driving factors of China-ASEAN industry cooperation. Take building materials as an example, many products output is huge and also with good quality. ASEAN countries have such demands, which make opportunities for bilateral cooperation. Xu Ningning said: "ASEAN is implementing interconnection project and a large number of infrastructure projects are carried out, China can provide the homologous building materials, therefore, this is a win-win thing." 

Moreover, the high cost performance of some Chinese products meet the needs of ASEAN countries and is also one of the advantages of China-ASEAN industry cooperation. In this regard, Xu Ningning said: "Among China's manufacturing industry products, machinery and electronic products have cost competitive advantage. Compared with the western similar products, we have the cost advantage and also in line with consumers’ demand and production needs of ASEAN countries. " 

However, currently, China-ASEAN industrial cooperation faces some challenges. Xu Ningning said that advanced countries have mature sophisticated experience. While Chinese industries concentrate on the field of resources development and projects contracting, hence manufacturing is a short slab. 

Meanwhile, in terms of trading structure between China and ASEAN, there are also some factors affecting China and ASEAN industrial cooperation. Xu Ningning indicated: "Among China and ASEAN trades, we have a lot of primary products importing from ASEAN countries, while Chinese exporting to ASEAN are mostly manufactured products. ASEAN would not like to see this. Therefore, if we want to meet the needs of ASEAN, we should enhance industrial cooperation and deepen investment. 

Generally speaking, Xu Ningning thought that China and ASEAN enjoy bright prospect in industrial cooperation, industrial cooperation is a practical choice, which is also a mutual benefit and win-win result in promoting bilateral industry chain. Xu Ningning said: "The industrial chain value between China and ASEAN is very low. We process goods for developed countries, their terminal sales value is very high. Hence we need to improve regional value chain and enhance industrial cooperation." 

According to the agreement reached between China and ASEAN, China will add $ 100 billion investment to ASEAN from 2015 to 2020. In this regard, Xu Ningning said: " No matter investment or developing industrial cooperation, both of these will benefit American, European and Japanese enterprises investment in ASEAN, and contribute to ASEAN economic integral improvement. They will also be conductive to maintain economic growth for the whole Asia especially East Asia’s developing into a engine of world economic growth.



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