The partnership between China and ASEAN was more than just a business arrangement and both sides must avoid direct competition to bring about greater benefits in the future, ASEAN Secretary-General Ong Keng Yong said in an interview with Xinhua recently.

 

As the ten-member Association of Southeast Asian Nations (ASEAN) has changed its perception of China's development, viewing it today as an opportunity rather than a threat, both sides must explore the best way to reap the greatest benefits from their partnership, Ong said.

 

"The important thing is how to find what sectors could produce business opportunities, and what sectors could allow us in ASEAN to have advantages over China. In China too, the businessmen are now seeking what comparative advantages they have," Ong told Xinhua at his Jakarta office.

 

Initially, there were some fears that China's rapid growth would take away many business opportunities and investments from ASEAN, but its member countries have gradually changed their perceptions and in many ways China's rapid growth has been seen as a motivation to improve their cooperation and integration, he said.

 

"Of course there are still some (people) in ASEAN who are worried about China's competition."

 

"But what's more important is that we are trying to guide these businessmen, who have lost their competitiveness, to other industrial sectors."

 

China takes the lead in various manufacturing sectors from toys and textiles to umbrellas and footwear.

 

"The fact that we cannot compete with China in such sectors doesn't mean the end of the world. If we can't make umbrellas and shoes, we can make other things," said the 52-year-old Singaporean.

 

Ong suggested that ASEAN countries produce components to be exported to China, where they could be made into complete products, and vice versa.

 

"The issue is beginning to develop into what we call a 'regional production network'."

 

China and ASEAN have maintained a formal relationship for 15 years and Ong said he believed both sides could do more to further promote their bilateral ties.

 

"China is developing so fast, with an average growth rate of 10 percent per year. We believe that China's interests in ASEAN will continue to grow, especially as ASEAN can provide many natural resources."

 

"I think China can fulfill a lot of its needs in ASEAN. What we have to do is to achieve a win-win situation, in which we can get more investments from China."

 

"For the next stage of our partnership, we hope to see more physical involvement by China in our industries and trade. A more extensive presence will make China's commercial relations with ASEAN more multifunctional and multidimensional."

 

Ong said China was a particularly important dialogue partner for ASEAN after it signed the Treaty of Amity and Cooperation.

 

"This is very important and encouraging. It means that China is committed to regional security and stability."

 

"Whatever differences we have -- we always have differences-- we don't have to take a confrontational position."

 

China is expected to contribute to the increased prosperity in Southeast Asia while the region could also contribute to China's efforts to develop healthy, good relations with the rest of the world, he said.

 

"Because, don't forget, Southeast Asia is very open. We (have) always (been) internationalized and cosmopolitan. We are like the window of the world," he said.

 

(Xinhua News Agency October 22, 2006)