"Both sides realize the significance of closer cooperation," he said. "And Guangxi is doing its bit to initiate the development of a big economic zone on the Beibu Gulf to improve traffic infrastructure of the Nanning-Singapore economic belt, which will pave way for fortified China-ASEAN economic ties."

ASEAN member states have become the second most important investment resource for Guangxi, following only Hong Kong, with contracts totaling $1.37 billion and investment of $740 million in 2006.

Both China and ASEAN members have been promoting bilateral trade, in part through the China-ASEAN Free Trade Zone, under which some 7,000 categories of products will enjoy tariff reductions, or even exemption.

The official added that there is also enormous potential for greater economic engagement with Singapore, Indonesia, Thailand and the Philippines.

Guangxi plans to import more energy and mineral resources from ASEAN members while boosting exports of finished products.

Official statistics indicate that Guangxi's foreign trade with the ASEAN members was worth $1.82 billion in 2006, an increase of 49.1 percent from 2005.

Its exports to the ASEAN members reached $980 million in 2006, up 18.5 percent from 2005, while its imports from the ASEAN members surged 113.4 percent to $840 million.

1

2

(For more biz stories, please visit Industry Updates)