Pr Asean China Ink Investment Agreement

PRESS RELEASE

ASEAN and China Ink Investment Agreement Bangkok, 15 August 2009

The signing of the ASEAN-China Investment Agreement today marks the last of the three major components under the Framework Agreement on Comprehensive Economic Cooperation, the other two being the trade in goods and services agreements. As of end of June 2009, the combined cumulative FDI of ASEAN and China was at over US$60 billion. Currently, China’s share of FDI into ASEAN stands at 2.4% of total ASEAN FDI inflows and it is expected that this agreement will pave the way for enhanced investment flows from China. Both sides’ substantial investments in each other’s economies will also benefit from the protection provisions of the agreement. Dr Surin Pitsuwan, Secretary-General of ASEAN, is optimistic of the growing relationship and synergy between the two regions, stating that “China’s economic engagement in this region is expanding and the investment agreement will catalyse more investment flows into ASEAN at a time when the global FDI flows from traditional sources are on the decline. The investment agreement will send positive signals that ASEAN and China are forging economic cooperation ahead in building a stronger economic partnership and setting the pace in moving the region out of the current economic crisis.” With this agreement, the potential of a combined market of 1.9 billion people and a combined GDP of US$6 trillion can be fully realised with a strong comprehensive economic partnership and collaboration. *****