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Thursday, November 17, 2011

China to pledge $473 mln to ASEAN nations-Indonesia

Reuters, NUSA DUA, Indonesia, Thu Nov 17, 2011

Nov 17 (Reuters) - China will likely pledge 3 billion yuan ($473 million) for cooperation in maritime industries with Southeast Asian countries, a senior Indonesian official said on Thursday.

The proposal was raised by Chinese Premier Wen Jiabao during a meeting with Indonesian President Susilo Bambang Yudhoyono, a presidential spokesman told reporters on the resort island of Bali.

"China said it plans to set up a fund for maritime cooperation with ASEAN and is preparing about 3 billion yuan to develop cooperation in maritime industries," Indonesian presidential spokesman Teuku Faizasyah said.

He did not elaborate on what sectors might be included nor provide a time frame.

China plans to table the offer to the Association of Southeast Asian Nations at a summit with them on Friday in Bali.

During a visit to Indonesia in April, Wen promised $19 billion of investment credit as he sought to build trust and end wariness between the world's emerging power and one of the region's brightest hopes.

He also said at the time that China would give one billion yuan for maritime cooperation.

It was not clear if the 3 billion yuan will include that previous pledge or be totally new money.

China is vying with the United States for influence in Indonesia and Southeast Asia in general, the site of strategic sea lanes and resources that it needs to power its economy.

Many people in the region see the United States as a bulwark against an increasingly confident China and its fast-growing military clout.

Other Southeast Asian countries have clashed with China over rival claims over potentially oil- and gas-rich islands and reefs in the South China Sea, which is seen by China as its backyard. ($1=6.35 yuan) 

(Reporting by Olivia Rondonuwu and Ben Blanchard; Editing by Neil Fullick)


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