Composing A New Chapter for East Asia Cooperation

Speech by Premier Wen Jiabao of the People's Republic of China at

the Seventh ASEAN plus China, Japan and ROK Summit

Bali, Indonesia, 7 October 2003

 

Your Excellency President Megawati,

Dear Colleagues,

I am very happy to join my ASEAN, Japanese, and Korean colleagues here on the beautiful island of Bali to discuss East Asia cooperation and development.  Before I start, I wish to express my heartfelt appreciation to our host for the considerate arrangements.

 

The establishment and development of the 10+3 cooperation is a major pioneering undertaking by East Asian countries for the sake of their common prosperity amidst economic globalization. Over the past six years, the 10+3 cooperation has been fleshed up bit by bit, and transformed itself from a mere dialogue meeting to a full-fledged cooperative system.  Along the road charted by the Joint Statement on East Asia Cooperation, we have set up a fairly complete operating mechanism, covering financial, economic and commercial cooperation, and increasingly, political, social and security areas.

East Asian countries have demonstrated a high degree of synergy in the 10+3 process.  As the initiator for 10+3, ASEAN has been a significant contributor to its smooth development and a major driving force behind East Asia cooperation.  China, Japan and ROK, for their part, have provided substantive input to East Asia cooperation process by promoting their respective bilateral mutually beneficial cooperation with ASEAN on the one hand, and actively exploring cooperation among themselves within the 10+3 framework on the other.

 

The 10+3 cooperation has borne new fruits since its last summit.  The Chiang Mai Initiative (CMI) has been further implemented, as marked by the signing of 12 pairs of bilateral currency-swap arrangements involving US$ 31.5 billion of contractual capital.  In the first half of this year when SARS cast a dark shadow, we held the 10+3 Health Ministers Meeting and 10+3 High-level Symposium on SARS, which was a new area for cooperation.  Furthermore, the successful convocation of the 10+3 Senior Officials Meeting on Combating Transnational Crimes represented a major step forward in substantive cooperation in non-traditional security areas.

Dear Colleagues,

 

We, as leaders of countries in the region, are obliged to do some serious thinking on further 10+3 cooperation under the new circumstances, and I wish to share with you some of my thoughts.

 

Better cooperation and reciprocity for a win-win result and shared prosperity in East Asia are becoming the theme of regional development in the new century.

Better regional economic cooperation is necessitated by faster development in East Asia.  In the face of accelerated economic globalization, only when countries in the region unite and strive, can they seize new opportunities, overcome new challenges and achieve lasting prosperity.

Better regional economic cooperation is reaffirmed by past experience. What has happened proves that mutually beneficial cooperation on an equal footing is the only right way leading to long-term peace, stability and prosperity in the region.

Better regional economic cooperation is the must-go road for East Asian economies.  Over the years, East Asia has remained the world's fastest growing regional economy.  Its current aggregate accounts for 23% of the global economy, while its foreign exchange reserve stands at 64% of the world's total.  In terms of market size, technology, natural and human resources, East Asia is also in a position to compete with Europe and North America.  Countries in the region are intertwined by their ever closer economic and trade links. Intra-regional trade takes up almost half of the total trade in East Asia, and intra-regional investment about two thirds of the entire foreign investment flowing into East Asian economies.  Those hard figures suggest the solid foundation and future potential of East Asia cooperation.

Thanks to years of efforts, 10+3 has provided an effective mechanism for deeper East Asia cooperation and gradual regional economic integration over time.  It is necessary that we identify long-term goals for 10+3 and promote better and more pragmatic cooperation upon the existing basis.

In view of the huge discrepancies in East Asia, the following principles must be followed in order to gradually deepen 10+3 cooperation:

Equality and consultation.  Countries have to seek consensus through consultation and play their roles as equals so that 10+3 cooperation can serve the common needs and interests of all parties.

 

Mutual benefit and win-win for all.  The purpose of cooperation is to bring good to all sides.  Efforts must be made to help less-developed East Asian countries to catch up and to bring benefits to them as much as possible.  Only so can 10+3 cooperation be more firmly-based.

Gradual process.  At present, the intra-regional cooperation is still at an initial stage.  We need to make our best efforts to push it forward while accommodating the actual conditions of all parties concerned, so as to advance the process steadily in a step-by-step fashion.

 Openness and inclusiveness.  East Asia cannot develop itself in isolation from the rest of the world.  Neither can we shut our doors to the outside, nor shall we form any exclusive bloc.  Instead, we must strengthen cooperation with other countries and regions while deepening our own intra-regional one. 

Dear Colleagues,

In the long-term perspective, I propose we start to improve and substantiate 10+3 cooperation in four areas so as to bring the East Asia cooperation to a new high.

First, to study feasibility of East Asian Free Trade Area.  ASEAN, China, Japan and ROK are one another's important trading partners.  China and ASEAN have achieved positive results in their Free Trade Area development.  Japan and ASEAN have agreed to forge closer economic partnership.  ROK and ASEAN are contemplating establishing a free trade area, too.  ASEAN has decided to build an "Economic Community" among its member countries as the goal of its next-stage development.  All this will pave the way for the ultimate formulation of an East Asian Free Trade Area. 

Second, to promote East Asian financial cooperation.  The cooperation level should be elevated.  To that end, I suggest the following: to build on the Chiang Mai Initiative and phase in multi-lateral currency swap arrangements on the basis of the existing bilateral ones; to gradually implement the preliminary 10+3 consensus on setting up an Asian bond market; and to give play to the region's advantages such as rich foreign exchange reserve and explore the possibility of a regional investment cooperation entity with a view to enhancing the capabilities of East Asian countries in making mutual investment.

Third, to strengthen political and security dialogue.  Security issues of various kinds remain prominent in our region, and terrorism and other trans-national problems are increasingly becoming real challenges to all countries.  There is no way to develop without stability.  East Asian countries have to develop cooperation in non-traditional security areas in accordance with the consensus reached at the 10+3 SOM on Combating Trans-national Crimes so as to jointly safeguard the hard-won peaceful environment for development.

 

Fourth, to expand social, cultural, scientific and technological cooperation.  I propose the establishment of a 10+3 public health cooperation mechanism as the anti-SARS campaign has presented such an opportunity. The 10+3 Health Ministers shall meet on a regular basis and a regional disease monitoring network be set up.  We may consider putting in place a 10+3 youth exchange mechanism to enhance mutual understanding and friendship between our peoples and a cultural and educational cooperation mechanism to invigorate East Asian cultural interaction.  The Chinese side supports new cooperation mechanisms in high-tech and other areas. We hope to see lively and synchronized cooperation in all fields within the 10+3 context. 

Dear Colleagues,

 

A thriving ASEAN is an important prerequisite for continued advancement of 10+3.  The Chinese side has noted with joy the new development achievements of ASEAN in recent years despite multiple hurdles and challenges. The just-concluded ASEAN Summit adopted the second Bali Concord in ASEAN history, in which ASEAN countries committed themselves to closer integration and establishment of "Security Community" and "Economic Community".  This is a milestone in the course of ASEAN development and will positively impact ASEAN's rejuvenation and the regional cooperation process.

China will continue to support, through concrete actions, ASEAN's integration and its unique and important role in various regional and international cooperation mechanisms, including 10+3.

 

Dear Colleagues,

China cannot develop without the support of the rest of East Asia, and the prosperity of East Asia also needs China.  As a member of this region, China highly values good-neighbourly relations and will continue to follow the principle of befriending and partnering with our neighbours and work for better regional cooperation and more vigorous and fruitful exchanges and interactions with the neighbouring countries.  Let us work together for better cooperation at 10+3 and in East Asia and compose a new chapter of East Asian prosperity and development.

 

Thank you.