China, Asean working on code of conduct in S.China Sea: Li
November 13, 2014, 8:07 am

Participants pose for group photos ahead of the 6th ASEAN-UN Summit in Nay Pyi Taw, Myanmar, Nov. 12, 2014 [Xinhua]

China and four ASEAN nations have competing claims in the South China Sea.

“China and ASEAN agreed to actively carry out consultation to reach, on the basis of consensus and at an early date, a code of conduct in the South China Sea, for which early harvest has been achieved,” Li said.

A code of conduct in the disputed waters will reduce the potential for disruption to trade, said Singapore Foreign Affairs Minister K Shanmugam on Wednesday.

Philippines President Benigno Aquino said earlier this week there was a “meeting of minds” with Chinese counterpart Xi Jinping during the APEC Summit in Beijing.

ASEAN covers some 600 million people with a combined GDP of two trillion US dollars.

This is the first time that Myanmar is chairing ASEAN and hosting the Summit, followed by the East Asia Forum, which was attended by US President Barack Obama, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi.

A massive China-ASEAN Expo was held in Nanning, in southern China in September this year, with over 2300 companies from China and ASEAN attending the event, showcasing strong trade ties.

China is the ASEAN’s largest trading partner, while ASEAN ranks as China’s third-largest trading partner. Bilateral trade between China and the ASEAN increased 10.9 per cent year on year to $443.61 billion in 2013, around 5.7 times that of 2003.

ASEAN and China also agreed in August to negotiate on upgrading the existing FTA to ensure the pact remains commercially relevant.

In 2013, ASEAN received $8.6 billion foreign direct investment (FDI) from China, a whopping 60.8 per cent increase year on year.

Earlier in August, ASEAN rebuffed a US proposal saying it was up to ASEAN to work with China to reduce tension in the South China Sea by improving compliance with a 2002 agreement, as they also work to conclude a binding Code of Conduct for maritime actions.

“It is up to ASEAN to encourage China to achieve a serious and effective implementation of this commitment, rather than ASEAN asking whether it should support or not support the (U.S.) proposal,” said Le Luong Minh, secretary-general of the 10-member ASEAN.

TBP and Agencies