Chinese Premier Wen Jiabao arrived in Bali for a week-long ASEAN-China
summit at which he is expected to discuss implementation of the world's largest free
trade area (FTA) and reassure Southeast Asian neighbors that China's rapid growth will
be of benefit to their region. China and ASEAN states Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam agreed last year to
create a FTA covering 1.7 billion consumers with a combined GDP of US$2 trillion. While
actual implementation of the FTA begins on January 1, 2005, a program of tariff reductions
has already started. The Southeast Asian nations, which are in the midst of establishing
their own free trade area, will also sign a FTA pact with India as well as an agreement with
Japan with provisions for a FTA. During the summit China is to be formally included in the
ASEAN Treaty of Amity and Co-operation.