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China's economic transition set to boost Asian integration despite slower

(Xinhua) Updated: 2016-03-23 10:33

Lin Guijun said that Asian economies have now placed more importance on the region' s services as global services grow quickly and investment flows increase.

More than 80 percent of the service-related free trade agreements signed by Asian countries focus on internal liberalizations, he said. China has promised to further open up its economy while pursuing more sustainable and inclusive growth. It is relying on the services sector to get the medium-high growth it needs to achieve the important milestones in its economic development by 2020.

Chen said economic integration in Asia is set to deepen further as China keeps steadfast to the principle of opening-up, with initiatives like the Belt and Road Initiative helping to open up China's hinterlands through trade links covering land and sea.

This will help drive infrastructure demand from ASEAN members and in turn boost their economic development. While there are risks to the economy like the spreading of financial market volatilities, China' s promotion in the global value chain has provided new growth opportunities for industries in regional countries like Indonesia, especially in the textile industry.

Chen said the degree of economic integration among China, Japan, South Korea and members of ASEAN has increased since China' s accession to the World Trade Organization in 2001, with stronger correlation unfolding between industries, within industries, and between manufacturing and delivery.

She also said mutual investment between China and ASEAN is now growing fast and so too is the demand for yuan clearing. Chinese banks like the Industrial and Commercial Bank of China have established clearing banks in countries in the region.

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