China Says Crisis Is Opportunity To Boost East Asia Trade

PHUKET, Thailand, July 22 - China urged East Asian Asian countries on Wednesday to use the global economic crisis to boost regional trade and get a $120 billion liquidity fund in place by the end of the year.

Foreign Minister Yang Jiechi told a meeting of the Association of South East Asian Nations , Japan, China and South Korea to boost economic cooperation and move faster to set up the currency swap deal -- known as the Chiang Mai Initiative.

"The measures we have each taken to meet the crisis have produced initial results and we have seen signs of confidence returning to global financial markets," Yang said in a speech to his counterparts in the Thai resort of Phuket.

"We should turn the crisis into an opportunity for deepening financial cooperation ... and vigorously intensify cooperation among finance departments, central banks and financial regulatory authorities."

The 10-member ASEAN as well as China, Japan and South Korea agreed in May to launch the $120 billion currency pool, the first such facility in the region to be governed internally.

The scheme is an upgrade of an agreement launched in the Thai town of Chiang Mai in 2000 between the 13 countries to help avoid a repeat of the 1997-1998 Asian financial crisis.

The initiative expands an existing network of mostly bilateral currency swap arrangements between ASEAN and China, Japan and South Korea.

Yang said East Asian nations should rely on each other to revive their economies and reduce "external dependence".

"We should bring into full play the role of the bilateral currency swap agreements and enhance the capacity of countries in the region to fend off financial risks," he said.

China-ASEAN bilateral trade is worth $231.1 billion, with two-way investment around $60 billion.

ASEAN comprises Malaysia, Thailand, Singapore, Indonesia, Vietnam, Cambodia, Brunei, Laos, Philippines and Myanmar. (Reporting by Ben Blanchard; Writing by Martin Petty; Editing by Alex Richardson)

http://sg.news.yahoo.com/rtrs/20090722/tap...na-c3bb44c.html

Edited July 22, 200916 yr by chuenjit