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By Qiu Quanlin (China Daily)
Updated: 2007-07-28 09:12

NANNING: A proposed association within the Pan-Beibu Bay region would provide a strong foundation for economic cooperation between China and other countries surrounding the bay, a top local official said.

The proposal, put forward by officials from South China's Guangxi Zhuang Autonomous Region and domestic banks, was a hot topic among participants of the Pan-Baibu Bay Economic Cooperation Forum, which closed on Friday in Nanning, Guangxi's capital city.

"The proposed association is of great importance to building a financial platform between China and the other six countries in the Pan-Beibu Bay region since financial injection is a fundamental element for cooperation in the region," said Liu Qibao, Party secretary of Guangxi.

The Pan-Beibu Bay area includes China, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Vietnam.

Under the proposal, a joint financial database for cooperative projects would also be established to help economic development in the Pan-Beibu Bay region, according to Liu.

"We welcome domestic and overseas banks, including the Asian Development Bank and State-owned banks in other Pan-Beibu Bay countries, to join the association. Private investment organizations are also encouraged," said Liu.

Both domestic and overseas financial institutions have shown interest in supporting the effort.

"We have given priority to regional economic cooperation in the Pan-Beibu Bay area, and later we will dispatch a number of working groups to countries surrounding the bay to work out details of cooperation in the financial sector," Chen Yuan, governor of China Development Bank (CDB), said.

According to Chen, the CDB has promised 24.8 billion yuan to support development.

The proposal to establish a joint financial entity in the Pan-Beibu Bay area was also supported by Chen.

"The entity, which would be of great importance in providing financial services for economic cooperation, would push forward development of big projects between countries surrounding the bay," Chen said.

(China Daily 07/28/2007 page10)