China Signs Investment Agreement With Asean

[george]

China signs investment agreement with ASEAN

BANGKOK: -- China and the Association of South-East Asian Nations(ASEAN) on Saturday signed an investment pact that provides guarantees against nationalization, riots and disputes and was expected to boost investment.

"The ASEAN-China Investment Agreement is expected to boost bilateral investments by 40 to 60 per cent over the next two years," Thai Commerce Minister Porntiva Nakasai said after inking the pact with Chinese Commerce Minister Chen De-ming.

China is currently ranked the eighth-largest investor in South-East Asia with 5.6 billion dollars in cumulative investments in the region as of 2008.

Investments in China from the 10 members of Asean amounted to 6.1 billion as of last year.

The investment agreement provides Chinese and Asean investors guarantees not necessarily proffered to other countries.

"For instance, the agreement will guarantee compensation for investors in the case of nationalization or riots," said Krisda Piampongsant, spokesman for the Commerce Ministry of Thailand, which now holds the rotating chairmanship of ASEAN.

-- The Nation 2009-08-15

[slapout]

Well if I were a potential investor this agreement would mean diddly squat, just due to the past record of patent, copyright infringement, and in some cases outright theft of the technology which has been brought into Asia by foreign companies.

[george]

China, ASEAN sign investment accord

BANGKOK: -- China, which now enjoys the highest growth in Asia and is the world’s third largest economy, signed an investment agreement Saturday with the 10-member Association of Southeast Asian Nations (ASEAN) here, Thai Commerce Minister Pornthiva Nakasai said.

The agreement was signed during the 41st ASEAN Economic Ministers Meeting (AEM) held in Bangkok.

Hailing the agreement which followed six years of negotiations -- since 2003, AEM chair Pornthiva said that the move will protect Chinese and ASEAN investor interests, as well as increasing new capital inflows to offer sustainable profits is in line with a plan to establish an ASEAN Economic Community by the end of 2015.

Under the agreement, Chinese businesses will expand investment in agriculture and food industries in ASEAN and plan to extend loans amounting to US$15 billion for infrastructure development programmes, including construction of a railroad from southern China to Malaysia.

It is expected that the agreement would boost investment between ASEAN and China to $5 billion from the $3.6 billion now within the next three years.

Latest statistics showed that China now ranks fourth in terms of key goods imported from ASEAN while the grouping ranks third as principal importer of that country.

Chinese investment now ranks eighth in ASEAN and its cumulative investment since last year totaled about $6.1 billion, while ASEAN investment in that country were approximately $5.6 billion.

China and ASEAN signed a Framework Agreement of Comprehensive Economic Cooperation in 2002, proposing an ASEAN-China free trade area to be realised by January 1 next year.

-- TNA 2009-08-15

[dale8]

Hello, this new investment will make it much more easy for China to exploit the natural resources of many other countries. China can have an easy transportation system to move more food to feed all their people, and I hope there will not be more inflated food prices in Thailand or southeast Asia as a result of this investment.