J

ust several days before the visit of their prime minister to Indonesia, Chinese officials gave their first response to widespread complaints in Indonesia on massive imports from China.

The officials said the country had to work hard to improve its competitiveness.

S.U.N. Yuanyiang, China’s Commerce Ministry deputy director general for free trade affairs, said here Tuesday that all parties must undergo the globalization process. He added that the ASEAN China Free Trade Agreement (ACFTA) was a regional commitment made by ASEAN member countries and China to seek common interests in the region.

“Indonesia as a developing country and ASEAN member is very close to China and I do know the aspirations of Indonesian businesspeople. The [Indonesian] government and its entrepreneurs have to work hard to reform its regulations and restructure its industries to produce competitive products,” he told a group of visiting Indonesian journalists at his office.

Yuanyiang was responding to a question on the demand of parties to review the ACFTA because the agreement only accelerated the flood of Chinese products since its implementation in January 2010.

The official argued that free trade benefited the two countries because they could afford quality goods. Therefore, all barriers to free trade had to be phased out.

He said China also experienced the same problem when the World Trade Organization (WTO) was implemented 10 years ago. “But we have no choice but to take an active role in the WTO by restructuring our companies and creating a friendly investment climate. China’s enterprises have stopped complaints and we now have to compete with developed countries.”

“In entering the WTO and ACFTA, we must build our competitiveness. All companies have to make adjustments and the government has to be active in facilitating companies to improve their products,” Yuanyiang said.

He added that ASEAN and China had to open their own markets because both sides agreed in 2007 to implement free trade in January 2010 to allow all countries in the region to compete and improve their trade to spur economic growth.

In 2010, China’s trade volume with Indonesia reached US$42.7 billion, up 56 percent from the previous year. “Our exports to Indonesia in 2010 reached only $22 billion while its imports were only $20.75 billion,” said Yuanyiang.

He reiterated China’s commitment to implement the bilateral agreement on infrastructure investment signed by the two countries in Yogyakarta last year. “This matter will be discussed in detail at the two countries’ next meeting in June,” he added.

He said China was also committed to providing training programs for Indonesian entrepreneurs in cooperation with the Indonesian Chamber of Commerce and Industry to enhance business management skills.

Separately, Ma Jisheng, China’s Foreign Ministry deputy director general for information affairs, emphasized the important role China had in forging bilateral ties with Indonesia because it was a developing country and an ASEAN member.

“Our diplomacy lies in relations with ASEAN and Indonesia. Within ASEAN, we have 10 good friends and we can all use these good ties to influence other countries and enhance international relations,” he said.

Ma stressed China had a large interest in continuing to forge bilateral ties with Indonesia for regional security and world peace.

“China will continue to boost bilateral ties with Indonesia in all fields since it is our neighbor country,” he said. He noted this was one reason why Chinese Prime Minister Wen Jiabao would visit Indonesia by the end of this month.

“Our prime minister will meet his Indonesian counterpart President Susilo Bambang Yudhoyono in Jakarta to discuss every issue relating to the two countries’ bilateral ties,” said Ma.