CHINA WANTS MUTUALLY BENEFICIAL TRADE WITH ASEAN

Jakarta, April 14 (ANTARA) - China wants trade with ASEAN member states under the ASEAN-China Free Trade Agreement (CAFTA) to favor both sides, its ambassador said.

"We want mutually beneficial trade. If it only favors us it will not continue. Indonesia is China`s strategic partner in terms of preserving both sides` long-term benefit," Chinese Ambassador to Indonesia Zhang Qiyue said on the occasion of diplomatic forum held by state radio broadcast company RRI on Tuesday.

He was responding to mounting news reports on Indonesia`s trade deficit with China after the CAFTA was put into force early last year.

Indonesia and China differed about the 2010 trade deficit, with Indonesia recording it at US$5-7 billion and China putting it at US$2.8 billion.

CAFTA was signed in 2004 but was fully implemented starting early 2010.

"Actually, CAFTA has shown a good trend because since 2005 there has been an annual increase of more than 20 percent. In 2010 alone, the increase reached 50 percent," he said.

Actually, China saw a deficit in its trade with Indonesia for more than 10 years. Only in the past couple of years the two-way trade favored China, he said.

"But this is not necessary. What is important, the statistics shows an upward trend," he said.

He said Indonesia must realize that its imports from China mainly consisted of raw materials, semi-finished goods and machines used to boost its economic growth.

"There is no need for Indonesia to worry about. With the imported goods (from China), the Indonesian economy can grow and the public can benefit from cheaper products from China," he said.

Data from the Trade Ministry show Indonesia`s exports to China last year were valued at US$15.7 billion compared to US11.5 billion in the previous year.

Meanwhile, Indonesia`s imports from China last year reached US$20.4 billion, a 31 percent increase compared to US$14 billion in 2009.

(T.KR-DLN/S012/A/H-NG /a014)