After the implementation of the Asean-China Investment Agreement, investment between Asean and China is expected to soar between 40 and 60% in the next two years.
Asean trade ministers and Chinese Commerce Minister Chen Deming signed the investment agreement under the Free Trade Agreement during the 41st Asean Economic Ministers’ meeting in Bangkok where this is being written.
Two-way combined investment value reached $11.7 billion last year. China is the eighth-largest foreign direct investor in Asean with accumulated investment of $6.1 billion. Asean accumulated investment in China reached $5.6 billion.
The agreement will come into effect on January 1. Negotiations began in 2003.
It will support foreign direct investment by giving non-discriminatory treatment to investors. Asean and China will compensate investors in case of expropriation and provide investor-state dispute settlement.
Projects expected to benefit from the fund are the construction of railways from Kunming to Singapore via Bangkok and from Nanning to Singapore via Hanoi and Bangkok.
The Nation reported that China and Asean also signed a cooperation agreement on intellectual-property rights to remove any trading barriers by creative economic policy on sustainable trade and investment growth, Alongkorn said.