China to pose as tough competitor for ASEAN nations<\/p>\n
BANDAR SERI BEGAWAN (AFP): Southeast Asia must prepare for
\ntougher competition from China after the US Senate voted
\noverwhelmingly to normalize trade ties with Beijing, officials
\nsaid here Thursday.<\/p>\n
The Association of Southeast Asian Nations (ASEAN) -- whose
\nkey members have just emerged from a crippling financial crisis
\n-- must shape up to withstand competition in exports and drawing
\nin foreign investments, they said.<\/p>\n
\"China will in time become formidable in terms of
\ncompetitiveness. We have to adjust to that situation,\" said
\nPhilippine Trade Undersecretary Jose Antonio Buencamino on the
\nsidelines of an Asia-Pacific Economic Cooperation (APEC) forum
\nmeeting in Brunei.<\/p>\n
U.S. senators voted overwhelmingly Tuesday to approve
\nlegislation which will slash U.S. tariffs on Chinese exports in
\nreturn for China's pledge to open its market to US firms as part
\nof its upcoming entry into the World Trade Organization (WTO).<\/p>\n
Market opening is seen to result in China adhering to
\ninternational rules such as the protection of intellectual
\nproperty rights and more transparency.<\/p>\n
Kobsak Chutikul, director-general of the economic affairs
\ndepartment of the Thai foreign ministry, said greater access of
\nChinese goods to the US market and the opening up of its own
\nwould hurt ASEAN exports and alter the investment landscape in
\nthe region.<\/p>\n
Export earnings have been a driving force in ASEAN's economic
\nrebound.<\/p>\n
In the short-term, Thailand expects exports to fall about 1.4
\npercent as a result of increased competition from China.<\/p>\n
\"But in the middle and longer term, we expect that we will
\ngain. There will be more opportunities and benefits, we will gain
\nfrom expanded world trade,\" said Kobsak, who is attending the
\nmeeting of APEC senior trade and foreign ministry officials.<\/p>\n
China's population of 1.3 billion is larger than the combined
\npopulation of Thailand's four major export markets -- the United
\nStates, Japan, the European Union and ASEAN.<\/p>\n
\"So there is enormous potential there. But we have to adjust
\nour industries and how we manufacture goods properly,\" Kobsak
\ntold AFP.<\/p>\n
He said the longer-term \"danger\" from China comes more from
\nthe country offering a better alternative to foreign investments,
\ndiverting funds away from ASEAN.<\/p>\n
\"China will draw in a lot of investments because of the huge
\ndomestic market. Investors -- Americans, Europeans and Japanese
\n-- who have invested in ASEAN might now turn to China because
\nthere will be more transparent rules and regulations.\"<\/p>\n
The region should hasten the implementation of the ASEAN
\nInvestment Area in order to withstand the competition from China,
\nKobsak said.<\/p>\n
\"In this way, we will have a rather competitive investment
\narea of 500 million people within the ASEAN region with middle
\nincome consumers. It's up to us to make our adjustments.\"
\nChina's eventual entry into the WTO will be a boost to APEC,
\nKobsak said.<\/p>\n
\"It has created a better atmosphere because China will be the
\nhost of APEC next year. China is the world's biggest country so
\nit will give APEC added strength if it is fully on board (in WTO)
\nand actively participate in the process.\"<\/p>\n
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia,
\nMyanmar, the Philippines, Singapore, Thailand and Vietnam.
\nAPEC embraces 21 economies on three continents bordering the
\nPacific Ocean.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/china-to-pose-as-tough-competitor-for-asean-nations-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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