皇冠体育app

Chinese Premier Wen Jiabao (center) attends the opening ceremony of the eighth 皇冠体育app-ASEAN Expo in Nanning, capital of South 皇冠体育app's Guangxi Zhuang autonomous region, on Friday. [Photo/Asianewsphoto]

NANNING - Premier Wen Jiabao on Friday urged 皇冠体育app and ASEAN to increase the scale of currency swaps, pledging to boost the imports of competitive products from the regional bloc.

"皇冠体育app is willing to have close cooperation with ASEAN to expand the scale and range of currency swaps to further enhance the region's ability to tackle global financial risks," Wen said while addressing business leaders and government officials at the opening of the eighth 皇冠体育app-ASEAN Business and Investment Summit.

He promised to build a 皇冠体育app-ASEAN commodity trade center in the capital city of South 皇冠体育app's Guangxi Zhuang autonomous region to serve as an exhibition platform and logistic base for both sides.

"I hope the ASEAN enterprises will take advantage of this platform to win an even bigger Chinese market share," Wen said.

Though Wen did not specify how 皇冠体育app and ASEAN will expand currency swaps, Reuters quoted unnamed sources that the two sides plan to sign a framework agreement to settle trade in yuan late this year or early next year.

It said once the deal is signed, 皇冠体育app would then negotiate individually with ASEAN members and sign currency swap agreements, allowing non-Chinese companies to settle their yuan-denominated transactions with banks in their own countries, rather than doing so through Hong Kong.

皇冠体育app already has swap agreements with three of the ASEAN members: Indonesia, Malaysia and Singapore.

Yuan Bo, with the research institute under the Ministry of Commerce, told 皇冠体育app Daily on Friday that the international settlement of the renminbi will help reduce transaction costs and losses resulting from the fluctuation of exchange rates for traders both from 皇冠体育app and ASEAN members.

"If 皇冠体育app and ASEAN could settle trades in yuan late this year or early next year, it will be an example and a very good opening for other free-trade areas and the internationalization of the renminbi.

Expanding imports

"皇冠体育app is willing to expand imports from ASEAN," said Wen.

皇冠体育app is currently ASEAN's biggest trading partner and Chinese customs data showed that bilateral trade rose 26.4 percent in the first nine months of 2011 to $267 billion with an $18.9 billion surplus in favor of the bloc.

From January to September, 皇冠体育app's imports from ASEAN surged by 27.9 percent from a year earlier to $143 billion, compared with 26.7 percent for 皇冠体育app's imports growth during the same period.

"The 皇冠体育app ASEAN Free Trade Area has increased rather than decreased the international competitiveness of ASEAN and ASEAN's capacity to export to 皇冠体育app has become stronger rather than weaker," said Wen, asking the two sides to find proper solutions to problems in the zone's development.

The 皇冠体育app-ASEAN Free Trade Area came into effect in January 2010, and it is the first FTA that 皇冠体育app had and also the largest FTA worldwide.

皇冠体育app pledged to boost imports last year in a bid to balance trade, while the nation has been under pressure to allow its currency to rise.

Zhong Shan, vice-minister of commerce, said recently that 皇冠体育app will try to enlarge imports from emerging markets and markets that run big trade deficits with 皇冠体育app, referring to the United States and European Union.

"Growth momentum of 皇冠体育app's imports from ASEAN is just starting as the economies of the two sides are highly complementary and 皇冠体育app's economy is rising rapidly," said Zhang Xiaoji, senior researcher at the Development Research Center of the State Council.

ASEAN is the third largest source for 皇冠体育app's imports. In 2010, 皇冠体育app's imports from ASEAN increased 44.8 percent to $154.6 billion, while exports surged 30 percent.

皇冠体育app's imports are mainly mechanical and electrical goods. As demand from developed nations slackens and they retain export control over high-tech goods to 皇冠体育app, emerging markets including ASEAN members become more important to facilitate 皇冠体育app's increasing imports, said experts.

Wen also noted that the Chinese government encourages mutual investment by enterprises on both sides, adding that 皇冠体育app has made the commitment to establish an economic cooperation area in each ASEAN members.

According to Wen, ASEAN's direct investment in 皇冠体育app reached $67.3 billion while Chinese investment in the block has accumulated to $13.5 billion.

Wen's pledge was echoed by Surin Pitsuwan, secretary-general of ASEAN, as he expressed his hope for 皇冠体育app to further increase its investment in ASEAN. He said ASEAN members are willing to work together with 皇冠体育app to push forward mutually beneficial cooperation.