China seeks deeper economic ties with ASEAN at summit talks as South China Sea disputes lurk

Chinese Premier Li Qiang emphasizes deepening market integration with ASEAN amid South China Sea disputes at summit talks.

Chinese Premier Li Qiang called for deeper market integration with Southeast Asia on Thursday (October 10, 2024) during annual summit talks where territorial disputes in the South China Sea are likely to be high on the agenda.

The 10-member Association of Southeast Asian Nations' meeting with Li followed recent violent confrontations at sea between China and ASEAN members Philippines and Vietnam that raised unease over China's increasingly assertive actions in the disputed waters.

Mr. Li didn't mention the row in his opening speech at the summit talks but said that intensifying trade relations between Beijing and ASEAN — a market of 672 million people — are beneficial for the bloc.

“The global economy is still seeing a sluggish recovery, protectionism is rising and geopolitical turbulence has brought instability and uncertainty to our development," Mr. Li said.

“An ultra large-scale market is our greatest foundation for promoting economic prosperity. Strengthening market coordination and synchronization is an important direction for our further cooperation," he said.

ASEAN and China said they made progress in negotiations to upgrade their free trade pact and expect to conclude the talks by next year. Officials said the expanded pact will cover supply chain connectivity, the digital economy and green economy. Since the two sides signed the free trade pact in 2010, ASEAN’s trade with China has leaped from $235.5 billion to $696.7 billion last year.

China is ASEAN's No. 1 trading partner and its third-largest source of foreign investment — a key reason why the bloc has been muted in its criticisms of Chinese actions in the South China Sea. ASEAN leaders have repeatedly called only for restraint and respect for international law.