By Chris Oliver, MarketWatch
The Wall Street Journal
HONG KONG (MarketWatch) -- In an apparent move to extend its influence, China will create a $10 billion infrastructure fund and extend $15 billion in credits to Southeast Asian nations as part of a general aid package to help its regional neighbors ride out the financial crisis.
Chinese Foreign Minister Yang Jiechi announced the plan Sunday through a report from the state-run Xinhua News Agency, saying the "investment cooperation fund" would support infrastructure, energy and resources, and information and communications projects.
Terms of the funding aid, which will be made available to the 10 members of the Association of Southeast Asian Nations, were not made public.
"The overall thought for China-Asean cooperation is that the two sides should rise to difficulties in face of the grim global financial crisis, and make efforts to convert unprecedented challenge into opportunity for closer pragmatic cooperation and common development," Yang was quoted as saying in the Xinhua report.
China also said it would offer $15 billion in credits to Asean nations, including $1.7 billion in loans with preferential terms that will go towards cooperative projects.
Additionally, Beijing plans to make available 270 million yuan ($39.7 million) in special aid to less-developed Asean members Cambodia, Laos and Myanmar. It will also donate 300,000 tons of rice for an East Asia emergency rice reserve to strengthen food security in the region.
Asean's other member countries are Thailand, Malaysia, the Philippines, Singapore, Brunei, Vietnam, and Indonesia.
A market commentary piece also published by Xinhua said the funding agreements would further boost China's role within Asia and help lay the groundwork for a regional free trade bloc.
"Strengthening and deepening cooperation is the common wish of the two sides, and is also an important avenue for fighting protectionism and enhancing their ability to resist risks in the current economic circumstances," the Xinhua commentary said.
The regional free trade bloc agreement should be completed by 2010, Xinhua said.
Yang was cited by Xinhua as saying China had planned to sign an unspecified investment agreement with Asean on the sidelines of a regional summit scheduled this weekend in Thailand but then postponed due to violent protests.
That agreement was meant to be "conducive to the establishment of the China-Asean free trade zone," according to Xinhua.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
Chinese Foreign Minister Yang Jiechi announced the plan Sunday through a report from the state-run Xinhua News Agency, saying the "investment cooperation fund" would support infrastructure, energy and resources, and information and communications projects.
Terms of the funding aid, which will be made available to the 10 members of the Association of Southeast Asian Nations, were not made public.
"The overall thought for China-Asean cooperation is that the two sides should rise to difficulties in face of the grim global financial crisis, and make efforts to convert unprecedented challenge into opportunity for closer pragmatic cooperation and common development," Yang was quoted as saying in the Xinhua report.
China also said it would offer $15 billion in credits to Asean nations, including $1.7 billion in loans with preferential terms that will go towards cooperative projects.
Additionally, Beijing plans to make available 270 million yuan ($39.7 million) in special aid to less-developed Asean members Cambodia, Laos and Myanmar. It will also donate 300,000 tons of rice for an East Asia emergency rice reserve to strengthen food security in the region.
Asean's other member countries are Thailand, Malaysia, the Philippines, Singapore, Brunei, Vietnam, and Indonesia.
A market commentary piece also published by Xinhua said the funding agreements would further boost China's role within Asia and help lay the groundwork for a regional free trade bloc.
"Strengthening and deepening cooperation is the common wish of the two sides, and is also an important avenue for fighting protectionism and enhancing their ability to resist risks in the current economic circumstances," the Xinhua commentary said.
The regional free trade bloc agreement should be completed by 2010, Xinhua said.
Yang was cited by Xinhua as saying China had planned to sign an unspecified investment agreement with Asean on the sidelines of a regional summit scheduled this weekend in Thailand but then postponed due to violent protests.
That agreement was meant to be "conducive to the establishment of the China-Asean free trade zone," according to Xinhua.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
5 comments:
Hun Sen is salivating.
Kuoy Pichet
Tired to read that kind of comment. With your intellectual level, you better advise the opposition, how to win the next election.
don't need to advise the opposition ,hun sen was created by Hanoi will rule cambodia forevertran
Cambodian Town
Long Beach, Ca
This is an oppportunities to Cambodian government to apply for loan, to rebuilt
infrastructure such as road, water and sewer system; improving education, health care, agriculture, trade.
New Phally
Secretary of State for Ministry of Interior and Adviser for first Vice President National Assembly
12:11PM who need advice, Hun Sen ihave PhD! don/t you know? are you tired of his bullshit? and you kong talk!
Do am ah neak leng!!!!!
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