VIENTIANE — There will be ups and downs in ties between the Association of South-east Asian Nations (Asean) and China, but both sides can turn a crisis into an opportunity to further strengthen ties, said Prime Minister Lee Hsien Loong.

Speaking at the Asean-China Summit in Vientiane on Wednesday (Sept 7) as both sides celebrated the silver jubilee of dialogue relations, Mr Lee noted that even in the strongest of relationships, issues will arise from time to time among parties, and the South China Sea is one such issue.

“But every crisis presents an opportunity. And this issue can be turned to our advantage in pursuit of the common goal of regional peace and stability, which are prerequisites for continued economic growth,” he said.

Mr Lee said the outcomes of the commemorative summit — including a protocol for unplanned encounters in the South China Sea and guidelines to set up hotline communications among the foreign ministries to respond to maritime emergencies — are proof that both sides can manage their differences. 

Chinese Premier Li Keqiang said during the summit that the successful relationship between Asean and China had played an important role in promoting regional development and stability, as he recounted how his Asean counterparts had told him that “among the various Asean dialogue partnerships, the Asean-China relationship is the most dynamic and fruitful”. 

“Both Asean and China have been increasing political mutual trust over the past 25 years … China was the first to build a strategic partnership with Asean and the first to initiate a free trade agreement with Asean,” said Mr Li.

China is the top trading partner for almost every Asean member state. Two-way trade has grown from US$8 billion (S$10.8 billion) 25 years ago to US$370 billion now. Both sides also upgraded the Asean-China Free Trade Area agreement — China’s very first free trade agreement, signed in 2004 — last year. The upgraded protocol will enter into force for more than half of the parties this October.

Mr Lee noted that the fruits of Asean-China cooperation “bear out most clearly in the economic realm” and looking ahead, both sides can explore further economic complementarities towards the target of US$1 trillion of bilateral trade and US$150 billion in investments by 2020.

On socio-cultural cooperation, Mr Lee said that there have been regular people-to-people exchanges with both sides holding a successful “Year of Educational Exchanges” in 2016, adding that he welcomes the designation of 2017 as the “Year of Tourism Cooperation”. 

He said all parties should continue to chart a positive trajectory for Asean-China relations and prevent them from being overshadowed by any one issue. “China’s success benefits the region; and it is also in China’s interest for Asean to succeed,” he said. 

Mr Lee added he appreciates China’s long-standing support for Asean centrality and unity in regional affairs.

“As the Asean-China country coordinator, Singapore would do our part to advance this important relationship in all areas of mutual benefit.”