2016年CRI China, ASEAN should still focus on cooperation despite ruling

Six years after its inauguration 1, the China-ASEAN free trade area generates hundreds of billions of US dollars in trade volume every year.

But Xu Liping with the Chinese Academy of Social Sciences is warning the overheated dispute in the South China Sea may cause losses to the common interests of the two sides and slow down the development of ASEAN's integration 2 process.

"The arbitration 3 case has undermined the efforts to implement 4 some cooperation projects between China and ASEAN. Bordering each other, the two sides have signed agreements to form a free trade zone and enhance investment, but all of them have been affected 5 (by the arbitration case) more or less. This is not good for ASEAN, that is trying to complete the construction of a community largely based on interconnection."

He says interconnection between ASEAN countries heavily relies on improved infrastructure 6, and China can lend a big hand given its experience in the area and good financial condition.

Chinese authorities have repeatedly noted 7 that the maritime 8 disputes in the South China Sea only involve certain ASEAN nations, and it is not an issue between China and ASEAN as a whole.

Professor Xu suggests though the situation in the region has been complicated, especially after a third-party country started to intervene. But he says both China and ASEAN should continue to focus on cooperation.

"It's not a fair arbitration. But in the eyes of some ASEAN countries, China's refusal to accept the ruling is a proof that it bullies 9 a small country with its might. This impression will do harm to the China-ASEAN relationship, mutual 10 trust, and economic cooperation as well. However, both sides should keep this in mind that cooperation benefits both sides the most."

The professor warns that the Philippines-initiated arbitration will do no good to the the regional order or regional security, but will help the United States to intervene in the South China Sea and hijack 11 the regional bloc 12 over the issue.

"The United States is trying to make ASEAN a chess piece in its strategy to re-balance Asia Pacific. It's not in line with the interests of the ASEAN that is pursuing development. Everyone knows China had not and will never invade them. But under US pressure, some of them have to take sides in the maritime dispute. It hampers 13 the bloc's integration."

China is ASEAN's largest trade partner, while ASEAN ranks as China's third-largest trade partner. Bilateral 14 trade between the two exceeded 470 billion US dollars last year.

China aims to elevate bilateral trade with ASEAN to 1 trillion U.S. dollars by 2020 and invest over 100 billion U.S. dollars in ASEAN between 2013 and 2020.

During his speech to the Indonesian parliament in October 2013, Chinese President Xi Jinping called for efforts to build a community of common destiny between China and ASEAN.