China seeks deeper economic ties with ASEAN at summit talks as South China Sea disputes lurk

VIENTIANE, Laos -- Chinese Premier Li Qiang called for deeper market integration with Southeast Asia on Thursday during annual summit talks, where concerns over Beijing's aggression in the disputed South China Sea was raised.

The 10-member Association of Southeast Asian Nations' meeting with Li followed recent violent confrontations at sea between China and ASEAN members Philippines and Vietnam, that sparked groiwng unease over China's increasingly assertive actions in the disputed waters.

Li didn't mention the row in his opening speech at the summit talks but said intensifying trade relations and creating an “ultra large-scale market” are keys to economic prosperity.

"The global economy is still seeing a sluggish recovery, protectionism is rising and geopolitical turbulence has brought instability and uncertainty to our development," Li said. "Strengthening market coordination and synchronization is an important direction for our further cooperation."

ASEAN and China said they expect to conclude negotiations to upgrade their free trade pact next year. Officials said the expanded pact will cover supply chain connectivity, the digital economy and green economy. Since the two sides signed the pact covering a market of 2 billion people in 2010, ASEAN’s trade with China has leaped from $235.5 billion to $696.7 billion last year.

China is ASEAN's No. 1 trading partner and its third-largest source of foreign investment — a key reason why the bloc has been muted in its criticisms of Chinese actions in the South China Sea.

ASEAN members Vietnam, the Philippines, Malaysia and Brunei along with Taiwan have overlapping claims with China, which claims sovereignty over virtually all of the South China Sea. Chinese and Philippine vessels have clashed repeatedly this year, and Vietnam said last week that Chinese forces assaulted its fishermen in the disputed sea. China has also sent patrol vessels to areas that Indonesia and Malaysia claim as exclusive economic zones.

Philippines President Ferdinand Marcos Jr. made clear to Li during talks Thursday that ASEAN-China cooperation cannot be separated from the sea dispute, according to an ASEAN official who declined to be named due to the sensitivity of the discussion. The official said Marcos wants to prioritize negotiations on a code of conduct to govern behavior in the sea to ensure peace.

Li responded by saying the South China Sea is “a shared home” and that China has an obligation to protect its sovereignty, the official said.

The Philippines, a longtime U.S. ally, has been critical of other ASEAN countries for not doing more to get China to back away. Talks on the code of conduct have been ongoing for years, hampered by sticky issues including disagreements over whether the pact should be binding.

U.S. Secretary of State Antony Blinken, who arrived in Vientiane on Thursday for the meetings, is expected to raise the issue of China’s aggression in the sea, officials said. The U.S. has no claims but it has deployed navy ships and fighter jets to patrol the waterway and promote freedom of navigation and overflight. China has warned the U.S. not to meddle in the disputes.

ASEAN leaders, who held a summit among themselves on Wednesday, also separately met with new Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol before convening an ASEAN Plus Three summit along with China.

ASEAN elevated its ties with South Korea to a “comprehensive strategic partnership” at the summit to boost cooperation. Yoon said the partnership will help both sides “create a new future together.”

Ishiba separately pledged to boost Japan-ASEAN relationship by providing patrol vessels and training on maritime law enforcement, strengthening economic security through financial and other support and bolstering cybersecurity.

“Japan shares principles such as freedom, democracy and the rule of law, and would like to create and protect the future together with ASEAN,” he said.

The bloc will also hold individual talks with dialogue partners Australia, Canada, India, the U.S. and the United Nations that will culminate in an East Asia Summit of 18 nations including Russia and New Zealand on Friday.

Former ASEAN Secretary-General Ong Keng Yong said that despite challenges in addressing disputes in the South China Sea and the Myanmar civil war, ASEAN's central role in the region is undisputable.

“ASEAN and its diplomatic maneuvers have sustained the relative peace and progress of Southeast Asia to date. ASEAN will continue to be useful in that regard. Big powers cannot do what they wish in the region,” said Ong, who is now deputy chairman of the S. Rajaratnam School of International Studies in Singapore.

Nearly 6,000 people have been killed and over 3 million displaced in a civil war after the Myanmar army ousted an elected government in 2021. The military has backtracked on an ASEAN peace plan it agreed to in late 2021 and fighting has continued with pro-democracy guerillas and ethnic rebels.

Myanmar's top generals have been shut out of ASEAN summits since the military takeover. Thailand will host an informal ASEAN ministerial-level consultation on Myanmar in mid-December as frustration grows in the bloc over the prolonged conflict.