ASEAN - China pledges to be 'good friend' to Asean; warns US

Chinese Premier Wen Jiabao Friday reassured leaders from all 10 Asean countries of China's peaceful intentions in the region, promising that his country would never seek hegemony there.

"China will forever be a good neighbour, good friend and good partner of Asean," he said.

But in the same breath, he warned--in a pointed reference to the United States--that when it comes to disputes in the South China Sea, "outside forces should not get involved under any excuse".

"The dispute on the South China Sea is a matter that has been going on for years. It should be resolved by the relevant sovereign states through friendly consultation and discussion directly," he said.

Wen was speaking to Asean leaders at the Asean-China Summit, but his message was also directed at the US, which has declared its interest in resolving the long-held dispute over overlapping maritime territorial claims.

The US and some of the claimants--which include Asean members--want the issue to be discussed at multilateral forums, but China has maintained it will deal with the countries bilaterally. The US has also said it would raise the issue at today's East Asia Summit.

A Chinese Foreign Ministry spokesman later said that China and Asean countries plan to communicate and implement the declaration on a code of conduct in the South China Sea within a year.

Meanwhile, the summit appeared to skirt around any unhappiness among Asean nations over what some see as more assertive actions by China, with their leaders marking the 20th anniversary of relations between China and Asean this year.

Wen announced the setting-up of a 3 billion yuan (US$471 million) fund to expand practical maritime cooperation between both sides, in areas such as marine research and environmental protection, navigation safety, and search and rescue operations.

He also promised to offer Asean countries US$10 billion in infrastructure loans, as part of an effort to deepen financial, trade and investment ties. The pledge comes two years after China offered a similar US$15 billion loan, which he said has supported more than 50 projects in almost all Asean countries.

Significantly, Indonesian President Susilo Bambang Yudhoyono, as Asean chairman, launched an Asean-China Centre jointly with Wen, as the other Asean leaders looked on.

The centre is based in Beijing, but seeks to set up branches in all 10 Asean countries, and is part of a bid to promote greater trade, investment, education, culture and tourism links between both sides, said its secretary-general Ma Mingqiang.

Ma told reporters the centre could help the region meet its needs of attracting Chinese investors to build roads, bridges and power plants, among other items.

Critically, Wen said China would adhere to Asean's centrality in promoting East Asian cooperation. He said: "China supports Asean integration and community-building, and welcomes a stronger and more influential Asean."

US President Barack Obama also said he welcomed the progress Asean had made, at a meeting with all 10 leaders later in the day.

The US is a Pacific nation that has long played a central role in the prosperity of the region, he said, and added that the region was critical to America's economic growth.

"My administration is committed to strengthening our ties with each country individually but also with the region's institutions," he added.

Prime Minister Lee Hsien Loong, who attended the closed-door sessions with both leaders and spoke at both, said China played an important role in the regional architecture, and welcomed its acknowledgment of Asean's centrality to the region.

He also said that the US security presence had underpinned the regional peace and stability for the last 60 years, and its economy had been a key driver of the region's economic progress.

And while it was important for the US to keep engaging the region, he added: "Countries must work together to maintain stability and make peaceful adjustments in a fast-changing environment."

Citing the South China Sea, he reiterated that Singapore takes no sides in the territorial disputes.

"Our fundamental interests are freedom of navigation and peaceful resolution of disputes in accordance with international law," he said, adding that the next step is to work towards a code of conduct in the area.

Separately, Obama met Yudhoyono in a bilateral meeting that lasted about an hour.

After their talk, the US President--who spent some of his childhood years in Indonesia - began his briefing by saying "Selamat Malam, terima kasih President Yudhoyono" (Good evening and thank you President Yudhoyono), drawing applause.

Trade and security ties took the bulk of the discussions as the two leaders announced a US$600 million Millennium Challenge Corporation Compact to support economic development through green projects and community-based nutrition programmes. The two also agreed to increase investments and consolidate a commercial dialogue as part of the broader comprehensive partnership initiated during Obama's trip to Indonesia last year.

Today, Wen and Obama will join leaders of 10 Asean countries as well as those of Australia, New Zealand, India, and Russia at the East Asia Summit here.

The Straits Times

Business & Investment Opportunities

YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.