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C O N F I D E N T I A L STATE 008941 
 
SIPDIS 
 
E.O. 12958: DECL: 01/28/2020 
TAGS: CH ECIN EFIN ETRD PGOV PREL XC ASEAN
SUBJECT: ACTION REQUEST: ASSESSING ECONOMIC RELATIONS 
BETWEEN ASEAN COUNTRIES AND CHINA 
 
Classified By: Asst. Secretary Kurt M. Campbell for 
reasons 1.4 (b), (d) and (e) 
 
¶1. (U) This is an ACTION REQUEST. Please see paras 
4, 5, 6 and 7. 
 
¶2. (C) SUMMARY:  The Department is interested in gaining 
a better understanding of growing economic relations 
between China and the rest of East Asia, including the 
proliferation of regional free trade agreements, and 
their potential impact on U.S. influence and economic 
competitiveness in the region.  In particular, the 
Department would like to gain a deeper understanding of 
economic relations between the ASEAN countries and China, 
in light of the recent entry into force of the ASEAN-China 
Free Trade Agreement and indications of uneasiness among 
some in Southeast Asia regarding their countries, economic 
relations with China. 
 
To help inform and guide U.S. strategic policy planning 
toward the region, posts are requested to assist with an 
assessment of your host country,s views on their economic 
relationship with China, China,s growing economic presence 
in the region, and China,s use of various tools to increase 
its influence throughout Southeast Asia and the Asia-Pacific 
region.  We would appreciate a broad assessment, including 
the views of host governments as well as other key actors 
and opinion makers, and the general public. 
 
Department notes and wishes to thank posts for the valuable 
reporting they have already provided on relations between 
their host countries and China, including in the economic 
arena. 
 
--------------------------------- 
ACTION REQUEST AND KEY OBJECTIVES 
--------------------------------- 
¶3. (C) Department notes growing formal trade and economic 
relations between the countries of the Association of 
Southeast Asian Nations (ASEAN) and China.  Of particular 
note is the broad entry into force on January 1, 2010 of 
the ASEAN-China Free Trade Agreement, as well as ongoing 
efforts to increase financial cooperation via the Chiang Mai 
Initiative.  At the same time, Department notes reports of 
uneasiness among some in Southeast Asia regarding their 
countries, economic relations and potential negative impacts 
of  such ties with China, as illustrated by Indonesia,s 
recent request to renegotiate the ASEAN-China FTA, as well 
as with the Chinese economic presence in their countries. 
 
¶4. (C) Department seeks posts assistance in conducting an 
assessment of individual ASEAN member countries, views on 
their evolving economic relationship with China and China,s 
growing economic presence in Southeast Asia. 
 
¶5. (C) Post responses could usefully encompass the following 
issues.  The Department requests that posts provide not only 
assessments and opinions of host governments, but also other 
key actors and opinion makers, and the general public. 
 
- ASEAN-CHINA FTA 
 
- IMPACT OF CHINA,S CURRENCY POLICY 
 
- CHINESE ECONOMIC PRESENCE IN SOUTHEAST ASIA: opinions on 
such issues as China,s investment in the host country, 
foreign assistance, business practices, and expatriate 
Chinese workers.  Please try to delineate, if at all 
possible, private lending/investment from development 
assistance. 
 
- CHIANG MAI INITIATIVE: extent to which the Chiang Mai 
Initiative is seen as a vehicle for increasing China,s 
influence on regional financial cooperation. 
 
¶6. (U) Please submit responses by COB, February 12, 2010. 
POCs for this action are EAP's Rock Cheung and David 
Rodriguez. 
 
¶7. (U) The Department welcomes continued reporting on host 
country views on this matter and deeply appreciates posts' 
assistance and input. 
CLINTON