News Analysis: Interconnectivity building to harness China-ASEAN relations

BEIJING,Nov.14(Xinhua)--AproposalmadebyChinesePremierLiKeqiangtoexpediteinterconnectivitywithChina'sdiplomaticallyprioritizedneighborsintheASEANblocisexpectedtoboostbilateralrelationsandgeneratenewmomentumforgrowth.

Duringaseriesofleaders'meetingsonEastAsiancooperationheldinMyanmaronThursday,thepremiersaidChinawouldofferover20billionU.S.dollarsinloanstosupportSoutheastAsianinterconnectivity.

Theofferincludesapreferentialloanworth10billiondollarsfortheASEANmemberblocanda10billiondollarloan,setupbytheChinaDevelopmentBank,forregionalinfrastructuredevelopment.

Lisaidthatinterconnectivitywasaprerequisiteforhealthyregionaltrade,andinvestmentliberalization.

ChinaandSoutheastAsiancountriesshouldensuresufficientandsmoothsea,airandlandtransportationlinks;enhancedplanningandconstructioninthefieldsoftelecommunication,electricpowerandInternetinfrastructure;aswellasimprovedconvenienceintheareasofcustomsclearance,andmarketregulations,supervisionandstandardization.

"TheinterconnectionproposalmadebythepremierwillbeapillarforChina-ASEANrelationsinthefutureandcreatenewgrowth,"saidvicepresidentoftheChinaInstituteofInternationalStudiesRuanZongze.

RuansaidthatthefinancialsupportwaswelcomedbyASEAN.

"[Infrastructureprojects],suchasbridges,roadsandportswillunleashmassivegrowthpotential.ManySoutheastAsiannationshavethedemandformoreinfrastructureprojects,however,withoutsufficientfunding,"RuansaidduringanonlineinterviewontheChinesecentralgovernment'swebsiteonFriday.

AccordingtoanestimatebytheAsiaDevelopmentBankin2009,Asianeedsabout8trillionU.S.dollarsininvestmentby2020toimprovetheregion'sbatteredinfrastructureandtokeeptheireconomieshumming.

ChinaalsoproposedtheestablishmentofanAsianInfrastructureInvestmentBank(AIIB)tofundinfrastructureprojectsinunderdevelopedAsiancountries.

Lastmonth,atotalof21AsianeconomiesinkedaMemorandumofUnderstanding(MoU)ontheestablishmentoftheAIIBwithexpectedinitialsubscribedcapitalof50billionU.S.dollars.

AnalystssaidthattheAIIBwouldcomplementratherthanrivalexistingdonorbanks,whoseprioritiesaremoreonpovertyreduction.

WorldBankPresidentJimYongKimalsosaidinJulythattheproposedAIIBwouldbeanewforcetobattlepovertyandbringsharedprosperityglobally,ascurrentinvestmentcannotfinanceinfrastructureinvestmentindevelopingnations.

DuringtheAsia-PacificEconomicCooperation(APEC)Beijingmeetingsthatconcludedthisweek,ChinesePresidentXiJinpingannouncedChinawillcontribute40billionU.S.dollarstosetupaSilkRoadFund,whichwillsupportinfrastructure;resources;industrialcooperation;financialcooperation;andotherprojectsamongcountriesalongthe"BeltandRoad".

TheBeltandRoadnotionreferstotheSilkRoadEconomicBelt,whichrunsfromChinaviaCentralAsiaandRussiatoEurope,andthe21stCenturyMaritimeSilkRoad,whichrunsthroughtheStraightofMalaccatoIndia,theMiddleEastandEastAfrica.

RuansaidthattheAIIBandtheSilkRoadFundwouldassistwiththecapitalbottleneckfacedbySoutheastAsiannations.

"Apartfromtheaforementionedinfrastructureprojects,ChinaandASEANalsofaceacontinuingurbanizationprocess,whichwillonlybringaboutnewneeds,"hesaid.

"However,wereallyneedtostartwithconcreteprojects,thesuccessofwhichmayfurthershowthatChina-ASEANcooperationininterconnectivitybuildingcantrulyimproveinfrastructure,boostregionaleconomicdevelopment,andcreatejobs,"hesaid.