KUALA LUMPUR – Lauding “dynamic, broad and substantial” ties between Southeast Asia and China, Prime Minister Lee Hsien Loong said today (Nov 21) that regional complexities such as maritime tensions should not overshadow other areas of cooperation like trade and culture.

Mr Lee, speaking as the coordinator for ASEAN-China relations during the 18th ASEAN-China Summit, said that ASEAN’s and China’s interests are closely intertwined. “China’s success benefits the region, and ASEAN Member States have always welcomed China playing a positive role in the region,” he said

He added that ASEAN-China cooperation has made a positive contribution to regional peace and stability, and these are key preconditions for continued economic growth that has made Southeast Asia a bright spot in the global economy.

“With close interactions, we must expect issues to arise every now and then, sometimes issues which are difficult to resolve. What is important is our ability to manage the issues calmly and constructively, without affecting the overall tone of our relationship,” he said to other regional leaders, including Chinese Premier Li Keqiang.

Taking stock of ASEAN-China cooperation, Mr Lee said that the results are most evident in the economic realm.

China is the top trading partner of almost every ASEAN Member State. Two-way trade between China and ASEAN has grown nearly 50 times from US$8 billion in 1991 to over US$370 billion today, noted Mr Lee.

The ASEAN-China Free Trade Area (ACFTA) signed in 2004, which was China’s first FTA, has played a key role in promoting trade, he added.

Negotiations are underway to upgrade the ACFTA. While the signing of the upgraded protocol was scheduled for this afternoon, it was subsequently cancelled.

“I understand that a few key details have still to be worked out and we are not quite ready to sign it today, and I hope in the spirit of ASEAN-China cooperation, we will be able to get this done without delay,” said Mr Lee.

If concluded, the upgraded protocol will introduce more flexible rules of origin to make it easier for Singaporean exports to qualify for preferential tariff treatment and guarantee more access for Singaporean service providers in China, among others.

Mr Li said at the outset of the Summit that Beijing’s relationship with ASEAN was central to its regional policy. He lauded growing ASEAN-China economic relations, with bilateral trade totalling US$379.2 billion so far this year. Mr Li added that people-to-people exchanges have been on the rise with more than 20 million tourist arrivals both ways.

When delivering his closing remarks, Mr Li said he agreed with Mr Lee’s comments that “our (ASEAN and China) common interests are more than our differences.”

Mr Lee noted that ASEAN-China relations go beyond the economic sphere to cultural and political areas, with regular exchanges in culture, tourism, sports and media.

A Plan of Action that will guide overall ASEAN-China cooperation in many areas for the next five years has been agreed upon.

He welcomed China’s proposal to hold a Commemorative Summit next year to mark the 25th Anniversary of ASEAN-China Dialogue Relations and to designate 2016 as the “Year of Educational Exchange”.

Commenting on regional security issues, Mr Lee said that progress has been made on the Code of Conduct (COC) in the South China, with the officials entering a “new phase” of discussions. He expressed wish for “fruitful discussions on the structure and elements of the COC and to an early conclusion of the COC.”

China has overlapping claims with Vietnam, the Philippines, Malaysia, Taiwan and Brunei in the South China Sea, through which US$5 trillion (S$7.1 trillion) in shipborne trade passes every year. Beijing has created artificial islands in the disputed waters by reclamation, sparking fears of militarisation and what some believe to be threatening of freedom of navigation in the region. ASEAN and China have been negotiating a COC in the disputed waters, but progress has been slow.

Mr Lee said that the agreement by parties to pursue an extension of the observation of the Code of Unplanned Encounters at Sea (CUES) to all their naval vessels in the South China Sea was a useful mechanism to reduce the likelihood of miscalculations.

CUES was signed in 2014 by China, the United States, and other Western Pacific nations. It sets out rules such as safe speeds and distances, the language to be used in communications, and actions in case a ship becomes disabled.

Mr Lee said that the protocol should be extended to coast guard vessels, adding that the hotlines between the foreign ministries should be established as soon as possible to manage maritime emergencies.

He stressed that as the ASEAN-China coordinator, Singapore will be an honest broker who will be objective and transparent to all parties. The Republic took over the three-year coordinatorship in August.