written by Wang Gongqing / translated by Ma Jinyu

CAEXPO: An Ef ective Platform for Implementing the “Five Approaches” of Maritime Silk Road

written by Wang Gongqing / translated by Ma Jinyu

2015 is the second year of China-ASEAN “Diamond Decade”, a crucial year for the negotiation on an upgraded version of the CAFTA as well as an important year to comprehensively advance the construction of the “Belt and Road” proposed by Chinese President Xi Jinping.

International economic cooperation requires long-term and stable political mutual trust, as well as pragmatic cooperation platforms. The rapid development of China-ASEAN economic and trade cooperation is the result of the deepening bilateral strategic partnership and the increasing political mutual trust. In the past 11 years, China and ASEAN established the most populous free trade area in the world -- CAFTA and co-built an ef ective service platform -- CAEXPO.

CAEXPO Turns “Five Approaches” into Reality

On July 29, 2015, the State Council Information Office of China briefed the status quo of China-ASEAN economic and trade cooperation, as well as the highlights and preparation work of the 12th CAEXPO and CABIS.

As the CAFTA has sped up its construction over the past 11 years, China and ASEAN have witnessed strengthened political mutual trust, accelerated trade growth and deepened economic integration, realizing win-win results and common development. Gao Yan, Vice Minister of Commerce of China, stated, in terms of the two-way trade, China-ASEAN trade volume in 2014 reached US$480.1 billion and up 8.23% compared to 2013, nearly 5% higher than China’s overall growth of foreign trade. In the first half of 2015, the bilateral trade volume amounted to US$224.38 billion, a growth of 1.6% year on year. China-ASEAN trade accounted for about 12% of China’s total foreign trade. At present, China has become ASEAN’s largest trading partner, and ASEAN the third largest trading partner, the fourth biggest exporting market and second biggest import source of China. As for the mutual investment, till the end of 2014, the twoway investment exceeded US$130 billion, over US$90 billion of which was ASEAN’s investment in China. China’s investment in ASEAN has been developing fast in recent years, with new investment occupying over 60% of its total foreign investment after 2010.

“The solid guarantee of mutual political trust, the sound foundation of economic cooperation and the vital role played by the CAEXPO have propelled China-ASEAN economic and trade cooperation to reap significant achievements. With the support of China and the ten ASEAN countries and the active participation of their enterprises, the 11-year-old CAEXPO has turned preferential policies into business opportunities and benef ts, reached agreements on a large number of practical cooperation projects and played its role as the ‘booster’ for the construction of the CAFTA. A series of dialogues between officials and businessmen as well as exchange activities in such f elds as customs, quality supervision, inspection and quarantine, finance, logistics and culture were arranged in the previous CAEXPOs, thus implementing the ‘policy communication, facility connectivity, trade facilitation, monetary circulation and people-topeople exchanges(namely the Five Approaches),’” Gao Yan said.

Sparkling Highlights in the 12th CAEXPO

With the joint ef orts of China and ASEAN in the past 11 years, the CAEXPO and CABIS have been universally accepted as cooperative platforms for China and ASEAN, effective carriers for promoting trade and investment facilitation, and important driving force for deepening cooperation in various fields. Zhang Xiaoqin, Vice Governor of Guangxi Zhuang Autonomous Region, introduced that 2015 is the Year of China-ASEAN Maritime Cooperation and the opening year for fully implementing the construction of the “Belt and Road”. The 12th CAEXPO will come up with the new highlights as follows.

First, it will focus on the “Belt and Road”. The 12th CAEXPO will feature “Building the 21st Century Maritime Silk Road,Creating a New Blueprint for Maritime Cooperation” as its theme and will arrange a series of high-level friendly exchanges and economic and trade activities like symposiums between political leaders and entrepreneurs, and maritime cooperation achievement exhibition, to build consensus among all relevant parties, bridge development plans and facilitate the cooperation in priority areas.

Second, it will promote the international capacity cooperation. A series of activities themed with international capacity cooperation will be held for the f rst time, to drive dominant capacities to cooperate with equipment manufacturing industry, technological transfer and f nancial service and so on. Conferences and forums related to the upgraded version of the CAFTA, China-ASEAN information port, finance, customs, logistics, think-tank, statistics, environmental protection, culture and education will be held concurrently. Hong Kong, the “City of Charm” of China this year, will present the outlook and business opportunities in the construction of the Maritime Silk Road.

Third, it will integrate into the global value chain. The World Trade Organization (WTO) will host the Symposium on the Commemoration of the 20th Anniversary of the Establishment of the WTO, thus to show CAEXPO’s impacts on enhancing China-ASEAN cooperation and being part of Asian and global integration. Korea as the Special Guest Country will send delegations of government and businessmen to attend the 12th CAEXPO.

The upcoming CABIS will actively carry out the concept of co-building the 21st Century Maritime Silk Road proposed by Chinese President Xi Jinping and the six initiatives put forward by Chinese Vice Premier Zhang Gaoli in the 11th CABIS. Based on the “pragmatic, innovative and sustained” principle, it will innovate and upgrade actively while improving the current activities, thus to better serve the communication between Chinese and ASEAN business circles and promote bilateral cooperation in an all-round manner.

Vice Chairman of the China Council for the Promotion of International Trade Yu Ping presented, high-level activities like the inauguration and round-table dialogue between Thai leaders and CEOs of Chinese enterprises, major trade exchange activities including China-ASEAN Business Leaders Forum, Seminar on China-ASEAN Legal Service Cooperation and Business Luncheon, and thematic events, such as the endorsement for industry and commerce as well as the establishment of e-commerce platform will be held during the CABIS.

The Active Participation of Enterprises in and out of the Region

It is said that the 12th CAEXPO will be held in Nanning, China in September 18-21 this year, and its preparatory work is proceeding smoothly. “Cities of Charm” of all countries are identif ed. Apart from China and ASEAN countries, Korea will attend the CAEXPO as the Special Guest Country. Professional audience from countries and districts like India, Australia, Japan, America and Europe are also active in attending this grand event. The number of applicants outside the region in the 12th CAEXPO will be larger compared to previous years.

The annual CAEXPO, as China’s statelevel exhibition with exceptional international influence, is favored by more and more enterprises. Exhibitors from different countries were drawn to the CAEXPO, making the demand for booths exceed the supply. It attracts many well-known enterprises and a lot of repeat exhibitors. The six ASEAN countries including Indonesia, Laos, Malaysia, Myanmar, Thailand and Vietnam will occupy an independent pavilion respectively.

The 12th CAEXPO will host, for the first time, the China-ASEAN Forum on International Capacity Cooperation and set up the International Industrial Capacity Cooperation Zone, thus to promote the capacity cooperation among China, ASEAN and countries along the 21st Century Maritime Silk Road. Thailand, the Country of Honor this year, will organize an inaugural ceremony of its national pavilion, round-table talks between leaders and entrepreneurs, a national promotion conference and other activities throughout the fair period.

For the past 11 years, with the concerted efforts of governments and business circles of China and 10 ASEAN countries, the CAEXPO has established a series of dialogue platforms between governments and enterprises, organized a plenty of activities related to customs, quality supervision, inspection and quarantine, finance, logistics and people-to-people exchange. This has helped enterprises better understand and apply cooperative arrangements and promotion policies on trade, and facilitate the development of bilateral economic and trade cooperation to be sustained, steady and rapid.

Both China and most of ASEAN countries are developing countries facing with the main tasks of developing the economy and improving people’s livelihood. In the context of building China-ASEAN Community of Common Destiny and the “Belt and Road”, forging the “Diamond Decade” of China-ASEAN cooperation, advancing the “2+7”cooperation framework and incubating an upgraded version of the CAFTA, the CAEXPO, as a fruitful platform for China-ASEAN cooperation, will continue to exert its greater inf uence.