Platform helps push for expanding role of Asia

Special Report: Boao Forum For Asia
2009

by Zhai Kun

BEIJING, April 21 -- This year's annual conference of the Boao Forum for
Asia, which concluded on Sunday in the scenic town bearing its name in Hainan
province, heralds a strengthened role of the China-sponsored event in promoting
Asian cooperation and development.

As the eighth of its kind, this year's forum has brought people more hope
for deepened Asian integration and cooperation amid global efforts to tackle the
financial crisis. Since its creation in 2002, the annual forum has acted as an
important platform for Asian leaders and economic circles to exchange views on
Asian affairs and to work out practicable formulas for win-win cooperation among
regional members.

At a time when the global financial crisis has yet to bottom out, this
year's forum is aimed at promoting deepened cooperation between China and other
Asian countries in grappling with the global financial crisis and pursuing
win-win results. To pull the regional economy out of the current predicament as
early as possible, a comprehensive prescription that should not only involve
close cooperation and collaboration among regional members but also include
various fields such as trade, investment and finance, is desperately needed.

The tour of Europe by Premier Wen Jiabao in early February and President Hu
Jintao's participation in the G20 London summit earlier this month have offered
chances for China's top leaders to talk with European leaders and those from
other countries about a panacea for the world's ailing economy. The Boao Forum,
however, has presented Asian leaders a chance for face-to-face consultations
about concerted measures to offset the impact of the ongoing financial crisis on
regional members and boost the slowing regional economy.

At the conference, Premier Wen delivered a keynote speech, mapping out ways
to deepen regional cooperation and boost confidence. He introduced to other
participants the measures China has taken to cope with the crisis and said the
stimulus packages the country has launched are paying off.

"Positive changes have taken place and situations are better than
expected," Wen said. The Chinese premier's remarks have boosted other
participants' confidence on the prospect of the regional economy. Undoubtedly,
as the world's third largest economy, a China that is on the way out of an
economic slowdown will inevitably help extricate Asia from the current financial
crisis.

At the forum, Premier Wen said China would continue to embrace a
long-cherished friendly and neighborly foreign policy. He also raised a series
of proposals to deepen Asian economic and trade cooperation, as well as maintain
regional financial stability. Proposals such as developing an investment-driven
economy, pressing ahead with "green" growth in Asia and promoting world peace,
stability and prosperity were also put forward. Covering a wide range of fields,
from the establishment of a free trade zone between China and the Association of
Southeast Asian nations (ASEAN) members, to expediting regional and sub-regional
traffic, power and communication cooperation, these workable proposals will
greatly boost regional economic development if they are to be effectively
implemented.

China has also decided to set up a 10 billion U.S. dollars fund to promote
investment cooperation with ASEAN members, in support of infrastructure
development in the region.

A proposal to expand bilateral swap volumes and membership was put forward
by some participants. That could herald a multilateral development of the Chiang
Mai Initiative, which was signed by financial ministers of the 10-member ASEAN
and China, Japan and South Korea in May 2005 and was aimed at setting up a
network of bilateral swap arrangements among the 10+3 countries.

Participants at the forum also reached a consensus on increasing the
region's stockpile of foreign reserves from the current 80 billion U.S. dollars
to 120 billion U.S. dollars. According to the proposals, the initiative's
membership would possibly extend to Australia, New Zealand and India, in
addition to its 13 members. So far, China has decided to conduct yuan settlement
for transnational trade in Shanghai and three of its other coastal cities. The
adoption of yuan settlement in business in international trade will surely
contribute to the development of the Chinese currency as a regional reserve
currency.

At the forum, participants also touched on other wider topics, ranging from
the promotion of deepened cooperation among APEC members, to the Asia-Europe
Summit, Asia-Middle East dialogue and plans to strengthen and improve Asian
cooperation with other regions.

Since its adoption of the reform and opening-up policy and its integration
into the outside world, China has been committed to creating an Asian forum that
strengthens exchanges and cooperation for regional members. With its political
and economic influence growing on the regional and international stage and in
particular, its growing contribution to Asian recovery and global efforts to
handle the ongoing financial crisis, the Boao Forum is expected to play an
increasingly major role in promoting cooperation and development within Asian
countries, and between Asia and the rest of the world.

The author is deputy director of the Institute of Asian and African Studies
under the China Institutes of Contemporary International Relations.

(Source: China Daily)