China has launched an initiative to transform the area around the South China Sea into a regional development hub that will deepen ties with ASEAN neighbours.

Called the "Pan-Beibu Gulf Rim Co-operation Plan," the initiative includes port cluster construction, joint resource exploration, and economic and trade integration, said Liu Qibao, newly-appointed secretary of the CPC committee of the Guangxi Zhuang Autonomous Region.

The Beibu Gulf area includes five ASEAN (Association of Southeast Asian Nations) countries: Viet Nam, Indonesia, Brunei, Malaysia and Singapore, and China's Guangdong, Hainan and Guangxi.

Jiang Zhenghua, vice-chairman of the Standing Committee of National People's Congress, said the initiative is of importance to the overall development of China's coastal areas.

"If the great potential is realized, the gulf area can become China's fourth economic powerhouse along its coastal regions," said Jiang at yesterday's forum on regional economic co-operation.

Contributing more than 60 per cent of the country's economy, the Pearl River Delta in South China, the Yangtze River Delta in East China and North China's Bohai Sea Rim area have already become China's three economic engines fuelling growth.

Appointed as secretary last month, Liu said he expected the initiative would be discussed by China's leadership at the 17th national Party congress, which is to be held in the second half of 2007.

"We can start co-operation with infrastructure construction," said Liu. "That will facilitate trade and other flows."

He suggested that the region can build an expressway linking Nanning, capital of the Guangxi Zhuang Autonomous Region and Singapore. "The plan is feasible because we only need to build about 300 kilometres of new road despite the whole length exceeding 3,000 kilometres."

International communities and domestic officials applauded the initiative, saying it shows China's commitment to speeding up construction of the China-ASEAN Free Trade Area.

"I agree that infrastructure should be the priority as the region's development is not even," Rita Nangia, an Asia Development Bank official in charge of major infrastructure investment, told China Daily.

She said the expressway would become another planned link between China and ASEAN members. Under the previous initiative called Co-operation in the Greater Mekong Sub-region, under the China-ASEAN framework, an expressway linking Kunming in Yunnan Province and Singapore was planned in 2004. The Mekong River runs through China, Laos, Myanmar, Thailand, Cambodia and Viet Nam.

"Both links are big projects consisting of parts of the Asian expressway network, and our goal is to link Beijing and Singapore by road," said Nangia.

Sudrajat, Indonesian ambassador to China, said the initiative could help deepen economic ties between the two countries. He said coastal areas in China, including Fujian, Guangdong, Guangxi and Hainan, are already major investment targets for Indonesians, and the new development plan would expand economic and trade activities between the two sides.

Cao Yushu, deputy director of the Office of the Leading Group for Western Region Development of the State Council, said the blueprint could help China's western regions reach markets in the Beibu Gulf.

"It's a plan indicating China's increased commitment to opening up to the world, especially through co-operative relations with the 10 ASEAN member countries," said Cao. "It's a landmark event aimed at promoting the construction of the China-ASEAN Free Trade Area."

With the establishment of the strategic partnership, the two sides have made substantial progress in a variety of fields, including trade.

In 2005, trade volume between China and ASEAN member countries reached US$130.3 billion, increasing 23 per cent year-on-year. The figure is expected to reach US$200 billion by 2010.

(China Daily July 21, 2006)