China Pitches Itself as US Alternative 10/28 06:06

   

   KUALA LUMPUR, Malaysia (AP) -- China signed an expanded version of a free 
trade agreement Tuesday with the Association of Southeast Asian Nations, with 
Premier Li Qiang pitching expanded economic ties with Beijing as an alternative 
to the protectionist policies of U.S. President Donald Trump.

   Li Qiang told an ASEAN-China summit meeting after the signing that closer 
cooperation could help overcome global economic uncertainties. He said 
"pursuing confrontation instead of solidarity brings no benefit" in the face of 
economic coercion and bullying, in a swipe at the U.S.

   "Unity is strength," he said, citing remarks by President Xi Jinping made 
during a Southeast Asia visit earlier this year.

   His remarks were met with skepticism by Philippine President Ferdinand 
Marcos Jr., whose country has clashed with China over competing claims in the 
South China Sea, as have other ASEAN nations.

   Marcos welcomed the expanded trade pact, but stressed that "this cooperation 
cannot exist alongside coercion."

   Pact could ease already-booming regional trade

   The signing of the ASEAN-China Free Trade Area 3.0 came on the final day of 
the annual ASEAN summit and related meetings and was witnessed by Li Qiang and 
Malaysian Prime Minister Anwar Ibrahim, who is serving as ASEAN chair this year.

   It's the third revision of the long-standing agreement, which was first 
signed in 2002, and came into force in 2010. The free trade area covers a 
combined market of more than 2 billion people and lowers tariffs on goods and 
boosting flows of services and investment.

   Two-way trade has surged from $235.5 billion in 2010 to nearly $1 trillion 
last year. ASEAN and China are each other's top trading partners.

   Li stressed "mutual reliance" between China and ASEAN members Brunei, 
Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, the Philippines, 
Singapore, Thailand, Vietnam, calling them "good neighbors and good brothers 
that are close in geography, culture and sentiment."

   "Unilateralism and protectionism have seriously impacted the global economic 
and trade order, while external forces are increasing their interference in the 
region -- many countries have been unreasonably subjected to high tariffs," he 
said.

   "By relying on each other and coordinating our actions, we can safeguard our 
legitimate rights and interests."

   Southeast Asian political analyst Bridget Welsh said the upgraded pact would 
benefit both sides, especially in the areas of supply chains and sustainability.

   "It also speaks to a global reality that non-U.S. countries are coming 
together to strengthen trade relationships for their prosperity as a recoupling 
with the U.S. is ongoing," she said,

   ASEAN juggles relationships with China and US

   The prospect of a deepening trade conflict between China and the U.S. has 
risked weakening economic growth worldwide.

   Trump at the ASEAN summit on Sunday announced new economic details with 
Cambodia, Malaysia, Thailand and Vietnam, though all countries are still 
subject to new tariffs he has brought in.

   Anwar stressed at the ASEAN meeting with China that the bloc seeks friendly 
relations with all countries.

   "The day before we were with President Donald Trump of the United States of 
America, and today we are back with China," he said. "And that reflects ASEAN 
centrality. ... This is what we consider steady engagement that fosters trust 
that enables us to work through challenges together."

   There were signs that tensions between the U.S. and China were cooling ahead 
of a planned meeting between Trump and Xi in South Korea on Thursday. Top 
negotiators from each country said a trade deal was coming together, which 
could prevent a potentially damaging confrontation between the world's two 
largest economies.

   Officials said the ASEAN-China free trade agreement is expected to broaden 
integration across the region by covering new areas such as digital trade, the 
green economy, sustainability and support for small and medium-sized 
enterprises, which make up the majority of ASEAN businesses. The agreement is 
designed to make trade benefits more accessible, improve market entry for 
smaller players, streamline nontariff procedures and lower regulatory barriers.

   Territorial tensions remain

   Marcos said the pact could help modernize trade practices and enable both 
sides to better respond to emerging economic challenges, but urged China to 
"commit to cooperation and meaningful engagement, especially in the South China 
Sea."

   Marcos said it was "regrettable" that Philippine vessels and aircraft 
continue to face "dangerous actions and harassment" in the South China Sea. He 
reiterated Manila's objections to Beijing's plan to establish a "nature 
reserve" over a hotly disputed shoal in the area.

   "Actions like these cannot hide under the veneer of marine environmental 
protection because they have no legal basis or effect, blatantly disregard 
international law, and infringe on the Philippines' sovereignty," he said. 
Still, Marcos added that Manila would continue to engage constructively with 
China to manage differences.

   ASEAN members Vietnam, the Philippines, Malaysia, and Brunei -- along with 
Taiwan -- have overlapping claims with China, which asserts sovereignty over 
nearly the entire South China Sea. Chinese and Philippine vessels have 
repeatedly clashed in the vital sea trade route.

   Marcos has vowed to accelerate the conclusion of a Code of Conduct to govern 
behavior in the disputed waters when the Philippines assumes the ASEAN 
chairmanship next year.

   In Beijing, Chinese Foreign Ministry spokesperson Guo Jiaku on Monday 
accused the Philippines of "deliberate infringements and provocations at sea," 
blaming Manila for escalating tensions.

   Welsh, the analyst, said regional officials treat the South China Sea 
dispute as a separate track from security ties and don't expect it to impact 
economic ties with China.

   In his remarks closing the summit, Anwar said that there had been consensus 
for engagement, with Li Qiang agreeing that the Code of Conduct negotiations 
should be accelerated.

   "All agreed that this region should not be an area of contestation of 
superpowers," Anwar said.