Jakarta. Indonesia has urged for a stronger cooperation between ASEAN and China particularly in the fields of green and digital economy, among others.

Vice President Ma’ruf Amin made the call at the ASEAN-China Summit in Laos on Thursday. China’s Premier, Li Qiang, among others, was present at the meeting. Indonesia also nudged both sides to strengthen their existing cooperation in the supply chain as well the empowerment of micro, small, and medium enterprises (MSMEs). 

Over the past year, ASEAN-China relations have improved significantly amidst global uncertainties. Aside from the US, China is also a leading trading partner and investor for ASEAN.

“China remained ASEAN’s largest trading partner for the past 15 consecutive years, with trade amounting to $696.7 billion in 2023,” Ma’ruf told the forum.

Both sides are in the process of upgrading their free trade agreement. For a mutually beneficial partnership, Indonesia also hopes that ASEAN-China cooperation becomes more inclusive and sustainable.

“Market access expansion, innovation, and adaptation are pivotal to prosperity,” Ma’ruf said while adding that the substantially completed upgrade to the trade pact would “strengthen our partnership in green and digital economy, supply chain, as well as support for MSMEs”.

Chinese Premier Li also confirmed Beijing’s commitment to stronger ties among others by increasing its support in building the railway and port infrastructure in ASEAN members. 

Beijing also intends to push for the implementation of the upgraded trade deal and extend partnerships on cross-border payments as well as local currency settlement. Li also vowed to increase the funding under the ASEAN-China Cooperation Fund and double the number of the ASEAN-China Youth Leaders Scholarship awardees over the next five years.

The meeting resulted in some documents, including a leaders’ joint statement on the substantial conclusion of the upgraded ASEAN-China Free Trade Area (ACFTA) 3.0. This document is a follow-up to the ASEAN Economic Community ministerial meeting last month. The leaders’ statement also marked a new episode in ASEAN-China economic ties with the inclusion of new areas of cooperation --including green and digital economy-- in the upgraded trade pact.

Chief Economic Affairs Minister Airlangga Hartarto was present at the ASEAN-China Summit. 

Airlangga previously also told his ASEAN counterparts to speed up the negotiations of the Digital Economy Framework Agreement (DEFA) amidst technological advancements. Indonesia also asked ASEAN to take more concrete steps in realizing many of its targets, including the ASEAN Power Grid, energy transition, and the strengthening of the supply chain.

To ASEAN, China remains its largest trading partner. In 2023, ASEAN members represented 15.9 percent of China’s foreign trade. China was also the third-largest source of foreign direct investment in ASEAN with investments totaling $17.3 billion in the same year.

Add as a preferred source on Google +