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ASEAN-China, largest market

(Xinhua)
Updated: 2006-07-10 09:29

The realization of the plan to develop ASEAN-China into a free trade area through economic integration is believed to make the two regions the largest potential market in the world, an economic expert said.

The population of the two economically integrated regions can reach 2.0 billion, or 4.5 times as big as the population of the North American Free Trade Area (NAFTA) and 5.4 times as big as the population of the European Union market, Rector of Sam Ratulangi University Prof. Lucky Sondakh said in Manado, capital of North Sulawesi province on Thursday.

China's economic progress will bolster economic growth in the countries grouped in the Association of South-East Asian Nations (ASEAN), Antara news agency on Saturday quoting an expert as saying at a workshop on Indonesia's opportunities and challenges in the development of ASEAN-China Free Market.

Sondakh predicted that China will take over the United States' position as a country with the biggest Gross Domestic Product (GDP)in 2050, based on the projection that China's purchasing power will reach 1.4 times as big as that of the US.

Viewed from the export of parts and components, China's economy has shown very significant progress, as reflected by the soaring of China's economic growth rate to 8.3 percent in the 1992-2004 period, he noted.

China's export to the world market has shown very fast growth as the most populous country has been able to offer export products that are competitive in price and quality, according to the professor.

On the occasion, Sondakh, who is known as an economic expert, also touched on the role of provincial administrations in supporting the free trade program, especially in the supply of agricultural, fishery and industrial products.

The readiness of provincial administrations will determine the role of the private sector in making Indonesian products highly competitive on the export market, he added.