Asia-Pacific FTA promotes regional economic integration
- By Wang Yuzhu
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E-mail China Today, October 14, 2014
The China Year and China's Contribution
China assumed the chair of APEC in 2014. Under the theme of "Shaping the Future through Asia-Pacific Partnership," China focuses on advancing regional economic integration, promoting innovative development, economic reform and growth, and strengthening comprehensive connectivity and infrastructure development.
To achieve progress in Asia-Pacific integration, the priority of the 2014 APEC is to make concrete steps towards construction of the FTAAP. In other words, an FTAAP roadmap must be drafted. As regards promoting innovative development and economic reform and growth, this year's focus is on the "five pillars," namely, economic reform, new economy, innovative development, inclusive support, and urbanization. The aim of all five pillars is to seek out new engines of economic growth, maintain the momentum of Asia-Pacific economic development, and ensure the region's status as a growth engine of the world economy.
Compared to the issues of economic integration and connectivity, that of promoting innovative development and economic reform and growth entails more programs and pragmatic progress. A review of APEC's history shows that APEC Economic Leaders' Meeting declarations mention development and growth almost every year. But there is generally more talk than action. The 2014 meeting has for the first time explored systematic and pragmatic ways of promoting economic growth and development. It features deep discussions on innovative growth, avoiding the Middle Income Trap (MIT), green development, blue economy, Internet economy, and urbanization. As members have reached consensus on development, concrete results with regard to cooperation should be achieved this year.
Regional connectivity, encompassing infrastructure connectivity, institutional connectivity, and people-to-people connectivity, was on the APEC agenda in 2013. Cooperation under those themes is conducive to building all-round, multi-level, compound regional connectivity, thus realizing the big market, big connectivity, and big development of the Asia-Pacific region. In 2013, APEC published the APEC Framework on Connectivity, so establishing connectivity as a new pillar of APEC development.
APEC's task this year is to draft a cooperation blueprint that will promote lasting practical cooperation towards connectivity. Right now, connectivity is a popular sector in regional cooperation, because it concerns the needs of developing economies. The Association of Southeast Asian Nations (ASEAN) hence adopted the Master Plan on ASEAN Connectivity. The China-ASEAN cooperation and the "10+3" cooperation (among the 10 members of ASEAN plus China, Japan and South Korea) accepted the concept before its introduction to APEC. This foundation makes it easier to carry forward.
Promoting APEC integration, connectivity, and regional growth is a pragmatic choice for China.
First, China's import market is growing rapidly; its imports will hit an estimated US $ 1 trillion in the next five years. Under the scenario of a booming market, therefore, China's promotion of regional integration signifies its resolve to share the fruits of economic development with other APEC members. Second, the construction of connectivity, especially infrastructure connectivity, demands ample funds. China supports ASEAN countries by including connectivity construction on the APEC agenda, so reflecting China's concern for developing countries, and readiness to make its contribution towards regional connectivity. At present, the Asian Infrastructure Investment Bank (AIIB), whose establishment China proposed, is still under construction. Upon its establishment, the bank will give financial support to connectivity construction in the Asia-Pacific.
