Economic integration drives growth in Asia
By Luo Man

Asian countries may have to put aside their differences and work on a louder, more united voice as they grow in economic and political power.

"The western voice is much louder... The Asian voice is much lower... and I think this is not fair. I think we have to change this situation. Asian media plays an important role to provide accurate reports and also a positive attitude," said Long Yongtu, secretary-general of the Boao Forum for Asia last Friday during China Daily's CEO Roundtable.

About 40 executives and CEOs met in Beijing for the 13th instalment of the roundtable, which has also been held in Shanghai and Hong Kong in the past. This time around, the lunchtime gathering was built into the Asia News Network annual conference, attended by top editors and CEOs from 14 newspapers from 12 countries in Asia.

"As Asia's influence grows, driven in part by China's economic growth, it is facing new challenges both within and without. One of the toughest is adjusting to the new realities of trade brought on by China's entry to the World Trade Organization and its shift to a market economy," Long said.

"Another is protectionism and the potential for countries in the region to close themselves in. We think Asia should be developing in an open international environment," Long said.

"All but 20 of the Fortune 500 are already in China. Transnational corporations are perhaps the most active players in the so-called economic globalization. A more joint economic voice may simply be part of a trend towards supply and manufacturing chains that span the continent. An auto manufacturing (plant) of an American company based in Beijing may have spare parts from Korea, Japan, Malaysia, the Philippines and so on," said Long.

At the same time, strong domestic demand from China and strong trade ties with the rest of Asia is helping neighbouring economies and improving regional trade. Trade among Asian countries increased substantially over the last two decades boosted by China's strong economic growth. China can help provide a more stable legal framework to further open markets.

However, economic co-operation can be threatened and some delegates, like Giorgio Magistrelli, executive general manager of the European Chamber of Commerce, wondered about them, particularly in the face of difficulties with Japan.

Long, however, said the differences with Japan are not a serious and practical threat to economic integration. "Despite the political differences we've had with Japan, trade and investment are still very, very, very strong. In the first five months of this year, China-Japan trade was more than US$70 billion," Long said.

China's willingness to open up further may help eliminate some of the fears around the region.

"The trade surplus of Asian countries with China has grown past the US$20 billion mark," he said. "At the same time the existing competition is a sign of strength. Competition can be healthy and manageable," Long said.

Around Asia, however, China's rapid industrialization and globalization may be causing fears, said Felix Soh, deputy editor of The Straits Times. "Every day we are being told that China is eating your lunch," Soh said. "While other countries are left behind fighting for the crumbs."

"The fears may be unfounded," said Long, as other countries in Asia have trade surpluses with China. "China imports a lot of products from these countries," he said. "Such as palm oil, spare parts and electronics."

What is happening now, he said, is a readjustment of all the regional economies.

"As bilateral co-operation grows, however, the WTO may be weakened from within, one representative feared. Countries are now starting to make bilateral free trade agreements irrespective of WTO provisions," said Wong Sulong, group chief editor of The Star in Malaysia. "How can countries make this organization more relevant in the context of growing protectionism?"

The answer may just be patience, said Long. Although he acknowledged the growing frustrations with the delays of negotiations around the WTO, he said it was still the most efficient way to deal with trade issues.

"I believe the WTO is the best answer because you have to have a legal framework." He said trade disputes may be high profile news, but they represent a miniscule part of trade.

Mr. Long Yongtu
Secretary-General, Boao Forum for Asia

Professor Anthony Saich Faculty Chair, Aisa Programs, Center for Business and Government John F. Kennedy School of Management, Harvard University, USA

Professor Wen Tiejun
Dean, School of Agriculture and Rural Development, Renmin University

Ms. Xiong Lei
Executive Editor of China Features, Xinhua News Agency

Ms. Hu Shuli
Editor in Chief, Caijing Magazine

Ms. Shen Ying
Executive Director, CTR

Mr. Zhu Ling
Editor-in-Chief, China Daily

Mr. Werner Vom Busch
Regional Representative, Konrad-Adenauer-Foundation