China signals support for APEC free-trade

China signals support for APEC free-trade

MADRID (AFP): Chinese Finance Minister Liu Zhongli has
signaled his country's support for a plan by members of the Asia-
Pacific Economic Cooperation (APEC) forum to establish a free-
trade area by 2020.

APEC, a fledgling group comprising 17 economies on both sides
of the Pacific, is to consider the ambitious free-trade proposal
at a summit meeting of leaders near the Indonesian capital
Jakarta in November.

Liu, in Madrid for the annual meeting of the International
Monetary Fund (IMF) and the World Bank, told a conference
Thursday that China was trying to strike a "proper balance"
between reform, development and stability.

"We envisage that by the end of the 1990s, a socialist market
economy will by and large have been established, which will
further develop into a mature and stable system in another 20
years or so," he said.

An APEC eminent persons group has called for the most
developed members of the forum to start liberalizing trade as
soon as possible.

Lesser developed economies would gradually follow suit with
the aim of achieving full trade liberalization by all APEC
members by 2020.

The United States, backed by countries such as Australia and
Singapore, has strongly endorsed the proposal.

But others such as Malaysia, which opposes moves to
institutionalize APEC, are cautious towards making such
commitments. Japan is adopting its customary wait-and-see
attitude.

APEC held its first meeting of foreign ministers and trade
ministers from 12 countries in 1989 and has since expanded to
include 17 members, holding its first summit meeting between
leaders in Seattle last year.

The group currently comprises Australia, Brunei, Canada,
China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New
Zealand, Papua New Guinea, the Philippines, Singapore, South
Korea, Thailand, Taiwan and the United States. Chile is set to
become the 18th member at this year's meeting in Indonesia.