Commentary: Interconnected Asia Pacific benefits all

Source:Xinhua Published: 2013-10-10 20:32:16

The Chinese top leaders' latest visits to southeast neighbors have sent an important signal to the world: it is time to blaze a win-win trail with an increasingly interconnected Asia Pacific.

An interconnected Asia Pacific is buttressed by the actual needs of those countries in the region. The blueprint, based on the realities of the Asia Pacific, takes into account both the differences and complementarity of the region's nations.

As for China, with its economy facing the pressure of overcapacity, supporting neighboring countries to boost its domestic growth is an effective approach, stimulating both domestic consumption and external needs.

On the part of ASEAN members, lack of infrastructure has been a bottleneck constraining their economic growth. Deeper cooperation with China will offer a breakout from their inherited growth pattern.

From the global perspective, as the rebalancing of the world economy gains momentum and Asia's emerging economies decelerate amid the volatile external environment, a stable and burgeoning Asia Pacific will be a blessing to the entire world.

The latest World Bank report revealed China is now in a transition in its mode of growth with less reliance on external markets. China's GDP growth target has dropped below eight percent as the focus shifts to the quality of the economy rather than the growth digit.

Economic growth in ASEAN countries such as Indonesia, Thailand and Malaysia has plunged, however, due to weaker exports, decreasing investment and a fall in bulk commodities prices.

Such a backdrop will increase the odds of more regional cooperation because interdependence between China and ASEAN countries, in this context, has grown, not reduced.

The approach is clear-cut. As an old Chinese saying goes, build the roads first if you want to make a fortune. True enough, infrastructure building is one of the most effective ways to leverage the development of a country or a region.

The Asian Development Bank estimates, by 2020, Asian countries will have spent eight trillion and 290 billion US dollars improving domestic and regional infrastructure, respectively.

China has strong capacity for infrastructure building and stands ready to foster shared prosperity with its neighbors. The British weekly, The Economist, has said a number of countries will find it impossible to complete such costly projects without China's engagement.

Cooperation on infrastructure not only offers a way out for China's capital and products, helps to balance international payments and pushes the RMB to go global, but creates more local jobs and provides opportunities for Asia's emerging economies that lack either capital or technology.

Aside from developing "hardware" such as railways, highways and airports, interconnectivity is also nurtured through intangible institutional reform and people-to-people exchanges. The combination of hardware and software can bring out the best in each country.

A sagacious person should come to realize that, contrary to some media speculation, China put forward the blueprint not out of expediency or on a whim. Rather, it incorporates a big strategy that concerns a shared destiny for all regional members.

And only by achieving interconnectivity and fully harnessing the dividend of regional economic integration can we better pave a win-win road toward world prosperity.

Posted in: Asia-Pacific

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