CHINA CONSIDERS HELPING ASEAN SMEs TO IMPROVE COMPETITIVENESS

By Vincent Low Seng Guan

BEIJING, March 6 (Bernama) -- China consider giving assistance beyond the
free trade agreement (FTA) arrangement to small and medium enterprises (SMEs) in
some Asean countries to improve their competitiveness.

"We are prepared to ask industries in the developed coastal provinces to go
to these countries to cooperate with the local SMEs and help them to improve
their competitiveness," said China's Commerce Minister Chen Deming.

"We will also help to improve the level and quality of infrastructure
development of some Asean countries so that they can be more competitive in
international trade," said Chen when asked to comment on speculation that some
Asean countries had threatened to withdraw from the China-Asean FTA.

He was speaking at a press conference Saturday on the sidelines of the
National People Congress to elaborate on some of the government's policies.

Since the China-Asean FTA came into effect from January 2010, SMEs from some
Asean countries, particularly Indonesia and the Philippines, had voiced their
dissatisfaction in not being able to compete with their China counterparts.

Chen said he was aware that some Asean countries might have different views,
especially those with SMEs that had voiced opinions different from their local
governments.

"The Chinese government has always exchange ideas with Asean, but so far the
leaders, the legislatures and enforcement bodies of each and every government of
the Asean countries all firmly suggested that they would push forward
development of the China-Asean FTA," he said.

Chen also said that the China-Asean FTA was a win-win for both parties,
especially when it come to the consolidation of relations, adding that since the
signing of the FTA framework agreement in 2004, bilateral trade had grown.

"In January 2010, China's exports to Asean grew by 52.8 per cent, and Asean
imports from China grew by 117.3 per cent, which is double the growth of China's
exports to Asean," he said.

However, Chen admitted that the FTA might have some impact on SMEs at the
beginning, but said as the FTA continued to develop into greater depth and as
the industries become more competitive, the benefits will increase.

"It will add to the prosperity and stablility of the region," he said. --
BERNAMA