People's Republic of China is ASEAN's fourth largest source of foreign investment with a value of 13.8 billion US dollars in 2021.

Jakarta (Indonesia Window) – ASEAN and People's Republic of China (PRC) agreed on guidelines to accelerate negotiations on the Code of Conduct (COC) in the South China Sea (SCS).

The guidelines were adopted at a meeting of the Association of Southeast Asian Nations (ASEAN) foreign ministers with the Director of Foreign Affairs of the Central Committee of the Chinese Communist Party, Wang Yi, in Jakarta, Thursday.

Indonesian Minister of Foreign Affairs Retno Marsudi and Director Wang Yi jointly chaired the meeting, said the Indonesian Ministry of Foreign Affairs in a written statement as quoted by Indonesia Window.

In her opening remarks, Foreign Minister Retno said that People’s Republic of China (PRC) is an important partner of ASEAN in maintaining peace, stability and prosperity in the Indo-Pacific region for more than three decades.

Economically, the PRC is ASEAN's largest trading partner, and ASEAN is People's Republic of China's largest trading partner, with a trade value between the two reaching 975 billion US dollars. People's Republic of China is also the fourth largest source of foreign investment for ASEAN with a value of 13.8 billion US dollars in 2021.

"Our partnership is increasingly important in the midst of growing challenges," Retno noted.

This year marks important milestones in their relationship, including the completion of Guidelines to accelerate effective and substantive COC negotiations, the completion of the second reading of the single draft COC negotiation, and the commemoration of the 20th anniversary of China's accession to the Treaty of Amity and Cooperation (TAC).

"These achievements must continue to build positive momentum to strengthen a partnership that advances the paradigm of inclusivity and openness, respects international law including UNCLOS 1982, and promotes habits of dialogue and collaboration," Retno said.

Both sides must work hard to strengthen this partnership. China must be a reliable partner for ASEAN in nurturing an open and inclusive regional architecture.

"Only then can we achieve win-win cooperation for the sake of peace, stability, and shared prosperity in the Indo-Pacific," she said.

Foreign Minister Retno requested China's support for the concrete implementation of the ASEAN Outlook on the Indo-Pacific (AOIP), including the plan to hold the ASEAN Indo-Pacific Forum (AIPF) in September.

As the chair, Indonesian Foreign Minister also read out the joint statement of ASEAN.

The joint statement highlighted several aspects, including the importance of compliance with the TAC, the adoption of Guidelines to accelerate COC negotiations, support for the implementation of the AOIP, economic cooperation, strengthening health resilience, and people-to-people contact.

Meanwhile, China expressed support for the TAC and ASEAN's centrality in developing an inclusive regional architecture. China also raised several priority areas of cooperation, such as agriculture, the development of electric vehicles, blue economy, and people-to-people contacts.

The meeting encouraged increased ASEAN-China economic cooperation, including the conclusion of negotiations for the Free Trade Agreement (FTA) 3.0, to strengthen trade relations and regional supply chains.

The meeting also emphasized the importance of post-pandemic connectivity revitalization, including the realization of China's commitments in regional infrastructure development.

Additionally, the meeting urged cooperation in addressing climate change, including ensuring regional food security, developing new and renewable energy, and welcoming progress in the negotiation process related to the South China Sea.

The meeting adopted the Guidelines for Accelerating the Early Conclusion of an Effective and Substantive COC.

Reporting by Indonesia Window