Full Text: Country Report on China´s Participation in Greater Mekong Subregion Cooperation

Since the second GMS summit in 2005, the bilateral trade between China and the other GMS countries has maintained a good development trend while enjoyed an improved trade structure, and the volume of bilateral investment has also experienced rapid growth. China has undertaken labor service contracting and design consultation in the other five GMS countries and has realized higher contract values and larger turnovers each year. China has also participated, in the form of joint ventures or wholly Chinese-owned enterprises, in development and construction of the economic and trade cooperation zones in Cambodia, Thailand and Vietnam, and in this way advanced local economic development.

(I) Bilateral Trade and Investment with Cambodia

In 2007, the volume of the bilateral trade between Cambodia and China was 933 million dollars, 193.6% up from the figure in 2004. China's export to and import from Cambodia were 882 million dollars and 51 million dollars, respectively 195.1% and 170.0% more than in 2004. In terms of commodity categories, China mainly exported to Cambodia yarn, fabrics and related products, apparel and clothing accessories, agricultural products, vessels, and rolled steel while mainly imported log, natural rubber, sawn timber, yarn, fabrics and related products, and apparel and clothing accessories. Till the end of 2007, Cambodia had accumulatively invested 84 million dollars in China, while the latter's non-financial direct investment in Cambodia reached an accumulated total of 190 million dollars.

The contracted amount that Chinese enterprises signed with Laos for labor service contracting and design consultation reached 380 million dollars in 2005, 320 million dollars in 2006, and 560 million dollars in 2007, respectively. Till the end of 2007, Chinese enterprises had accumulatively signed labor service contracts and design and consultation contracts with a total worth of 1.97 billion dollars, with a total realized turnover of 860 million dollars.

Besides, Sihanoukville Special Economic Zone Company Limited, a Chinese-Cambodian joint venture, will develop and construct the Taihu International Economic and Trade Cooperation Park in Cambodia. This cooperation park has an initial area of 1 square kilometer, but will swell into a total area of 11.08 square kilometers. Its total investment will be 2.6 billion yuan, and its major industries are textile and garment, machinery and electronics, and new and high technology.

(II) Bilateral Trade and Investment With Laos

In 2007, the volume of bilateral trade between Laos and China was 249 million dollars, increasing by 218.4% from 2004. China's export to and import from Laos were respectively 164 million dollars and 85 million dollars, rising by 162.4% and 653.8% from 2004. In terms of commodity categories, China mainly exported to Laos motorcycles, iron, car and motorcycle components, cars and car chassis, and electric wires and cables, while mainly imported log, unforged copper and rolled copper, agricultural produce, sawn timber, and copper ores and concentrates. Till the end of 2007, Laos had accumulatively invested 17 million dollars in China, and the latter's non-financial direct investment accumulatively reached 146 million dollars.

The amount of the contracts that Chinese enterprises signed with Laos for labor service contracting and design consultation was respectively 180 million dollars in 2005, 360 million dollars in 2006, and 610 million dollars in 2007. Till the end of 2007, the accumulated amount of the contracts that Chinese enterprises had signed with Laos for labor service contracting, and design consultation reached 2.28 billion dollars, with a total realized turnover of 1.41 billion dollars.

(III) Bilateral Trade and Investment with Myanmar

In 2007, the volume of the bilateral trade between Myanmar and China was 2.057 billion dollars, increasing by 179.7% from 2004. China's export to and import from Myanmar were respectively 1.686 billion dollars and 371 million dollars, rising by 179.6% and 179.2% from 2004. In terms of commodity categories, China mainly exported yarn, fabrics and related products, rolled steel, motorcycles, natural products, and oil products, while mainly imported log, sawn timber, agricultural products, natural rubber, and jewelry. Till the end of 2007, Myanmar had accumulatively invested 76 million dollars in China, and the latter's non-financial direct investment in Myanmar accumulated to 134 million dollars.

The amount of the contracts that Chinese enterprises signed with Myanmar for labor service contracting and design consultation was 510 million dollars in 2005, 310 million dollars in 2006 and 450 million dollars in 2007 respectively. Till the end of 2007, the accumulated amount of the contracts that Chinese signed with Myanmar for labor service contracting and design consultation reached 4.72 billion dollars, with a total realized turnover of 3.05 billion dollars.

(IV) Bilateral Trade and Investment With Thailand

The volume of the bilateral trade between Thailand and China was 34.638 billion dollars, increasing by 199.7% from 2004. China's export to and import from Thailand were 11.974 billion dollars and 22.665 billion dollars respectively, rising by 206.4% and 196.4% from 2004. In terms of commodity categories, China mainly exported to Thailand rolled steel, components of automatic data processing equipment, yarn, fabrics and related products, and telephone sets while mainly imported from Thailand automatic data processing equipment and its components, integrated circuits, agricultural products, plastics of primary pattern, and natural rubber. Till the end of 2007, Thailand had accumulatively invested2.965 billion dollars in China, and the latter's non-financial direct investment in Thailand had accumulated to 302 million dollars.

The amount of the contracts that Chinese enterprises signed with Thailand for labor service contracting and design consultation was 880 million dollars in 2005, 1.07 billion dollars in 2006 and 820 million dollars in 2007. Till the end of 2007, the amount of the contracts that Chinese enterprises had signed with Thailand was accumulatively 5.61 billion dollars, with a total realized turnover of 3.11 billion dollars.

In addition, Thai-Chinese Rayong Industrial Estate Development Company Limited, a Thailand-China joint venture, is now actively building the Thai-Chinese Rayong Economic and Trade Cooperation Park. This park has a total planned area of 3.5 square kilometers, containing a general industrial zone, a bonded zone, a logistics zone, and a commerce and residential zone. The park aims to attract the Chinese firms engaged in automotive components, machinery, home electric appliances and other lines to set up factories there. At present, the park has already developed 1.5 square kilometers and signed contracts with 12 enterprises that will invest a total of 99 million dollars in the park.

(V) Bilateral Trade and Investment with Vietnam

The volume of the bilateral trade between Vietnam and China was15.115 billion dollars, increasing by 224.2% from 2004. China's export to and import from Vietnam were 11.9 billion dollars and 3.216 billion dollars respectively, rising by 279.3% and 129.6% from 2004. In terms of commodity categories, China mainly exported to Vietnam rolled steel, yarn, fabrics and related products, oil products, steel billets and crude forgings, and agricultural products, while mainly imported from Vietnam coal, agricultural products, crude oil, natural rubber, and log. Till the end of 2007,Vietnam had accumulatively invested 108 million dollars in China, and the latter's non-financial direct investment in Vietnam already accumulated to 379 million dollars.

The amount of the contracts that Chinese enterprises signed with Vietnam for labor service contracting and design consultation was 1.16 billion dollars in 2005, 2.7 billion dollars in 2006, and2.23 billion dollars in 2007. Till the end of 2007, the accumulated amount of the contracts that Chinese enterprises had signed with Vietnam for labor service contracting and design consultation already reached 8.18 billion dollars, with a realized turnover of 3.45 billion dollars.

Besides, the preparatory work for Chinese enterprises to develop cooperation zones at Da Nang City and Tan Fuoc County of Tien Giang Province of Vietnam is currently proceeding smoothly. China Longjiang Economic and Trade Cooperation Zone, which is located at Tan Fuoc County of Tien Giang Province, has a planned area of 6 square kilometers and is positioned for textile, light industry, machinery, electronics, building materials, chemical, and other industries. Tien Giang Province already issued an investment license for the zone in November 2007, and is expected to transfer 1.5 square kilometers of land in March 2008.