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The service trade between China and ASEAN (the Association of Southeast Asian Nations) is expected to grow by a large margin in 2007, according to Lu Jianren, an economist with the Chinese Academy of Social Sciences (CASS).

 

Lu made the remarks on Wednesday in a seminar on China-ASEAN economic and trade relations.

 

Lu said China and ASEAN member states have their respective edge in the service industry, as China is competitive in computer service, Singapore in financial, legal and exhibition services, Thailand in tourist service.

 

Lu pointed out that with the great gap between different countries in different service sectors, it is difficult and challenging for these countries to fully open their service industry to other countries.

 

If China and ASESAN could sign agreements to further reduce access restrictions on their domestic service industry, the service trade between the two sides could see a big increase, Lu added.

 

The stable economic development of the US and Japan, China and ASEAN, the expanding international trade volume and a steady oil price would create favorable conditions for further step-up of China-ASEAN economic and trade relations, Lu noted.

 

However, the possible outbreak of bird flu, natural disasters, regional security and global financial risks would slow down the increase of the trade.

 

Lu said the China-ASEAN trade volume would continue to increase by about 20 percent in the year of 2007 despite the negative factors.

 

Latest statistics showed that China-ASEAN trade volume totaled US$129.91 billion from January to October of 2006, an increase by 23.1percent over the same period of 2005.

 

The seminar was held prior to Chinese Premier Wen Jiabao's official visit to the Philippines and attendance to a series of meetings in Cebu City from Jan. 13 to 16. The meetings will highlight the cooperation between China and ASEAN countries.

 

(Xinhua News Agency January 11, 2007)