China, ASEAN Sign Investment Agreement

China and the 10-nation Association of Southeast Asian Nations signed a bilateral investment agreement Thursday, signaling that the China-ASEAN Free Trade Agreement the two sides signed earlier to cover trade in goods and services can now be implemented on schedule next January.

The China-ASEAN FTA will be the first free trade pact involving ASEAN as an integrated region, covering a vast area with a combined population of 1.98 billion people (including China).

The Investment Agreement establishes a free, transparent and equitable investment mechanism for investors from both sides, Chinese officials said. The most crucial clauses in the negotiations establish "national treatment" and the "Most-Favored-Nation treatment," providing legal protection and guarantees that investors from both China and ASEAN nations enjoy fair and equitable treatment and non-discrimination in their bilateral business relationships.

Chinese officials told the press that the signing of the China-ASEAN Free Trade Investment Agreement sends a positive signal that the global financial crisis has not slowed the process of liberalizing trade and investment between China and the ASEAN nations despite some people's fears that global protectionism would do just that.

Contact Alan M. Field at afield@joc.com.