China-ASEAN Blue Economy Integration And Regional Economic Cooperation:  Harmonizing ACFTA, RCEP, DOC/COC And Peaceful Management Of Disputes In South China Sea – OpEd

In order to strengthen existing trade and investment activities, members of the Association for Southeast Asian Nations (ASEAN) and China are pursuing blue economy integration as an integral aspect of regional economic cooperation.  The ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP) are two pivotal regional economic arrangements facilitating China-ASEAN integration and cooperation processes in various areas, particularly in green, digital and maritime economies. 

Since trade and investment activities occur largely in the maritime sector, it is imperative to enhance cooperation in the maritime domain, especially in the blossoming of sea-based industries, construction and operation of ports, shipbuilding and repair, development of natural gas and oil, sustainable management of fishery, utilization and protection of marine resources, and even promotion of marine tourism, among others.  Among the important bodies of water enabling China-ASEAN blue economy integration and regional economic cooperation, the South China Sea stands out for being one of the world’s maritime superhighways with very rich natural maritime endowments like fish, natural gas and oil.

Enhancing China-ASEAN cooperation in the South China Sea is therefore essential for the realization of blue economy integration.  Areas of cooperation have already been identified in the 2002 China-ASEAN Declaration on the Conduct of Parties in the South China Sea (DOC).  These areas are          1) marine environmental protection; 2) marine environmental research; 3) search and rescue operation; 4) safety of navigation and communication at sea; and 5) combatting transnational crimes including international terrorism.  Implementing these areas of cooperation is also being seriously discussed in the ongoing negotiation for the conclusion of the China-ASEAN Code of Conduct in the South China Sea (COC).

The conclusion of the COC can ease the realization of China-ASEAN blue economy integration because of the strategic intention to promote peace in the South China Sea, which is necessary for regional economic cooperation.  Security tensions in the South China Sea can disrupt China-ASEAN blue economy integration.  Thus, it is crucial to conclude the COC in order to remove existing barriers to successful regional economic cooperation by pursuing good order at sea.

Achieving China-ASEAN blue economy integration and regional economic cooperation therefore requires a holistic implementing framework connecting ACFTA, RCEP and DOC/COC.  The ASEAN-China Plan of Action for 2026-2030 can serve as the implementing framework based on the overall goal of strengthening the comprehensive strategic partnership between ASEAN and China, fostering peace and prosperity in the South China Sea region, and pursuing common sustainable development in the wider RCEP and even the Belt and Road Initiative (BRI) communities. 

Genuine regional connectivity can only happen if China and ASEAN can harmonize the implementation of ACFTA, RCEP and DOC/COC.  Thus, to level up China-ASEAN trade and investments towards a blue economy integration, it is not sufficient to just implement ACFTA and RCEP.  China-ASEAN regional economic cooperation can truly flourish if there is a concomitant implementation of the DOC and conclusion of the COC in order to provide a conducive environment for the peaceful management of territorial disputes and maritime jurisdictional conflicts in the South China Sea. 

Delivered at the International Seminar, “Jointly Building a New Engine for China-ASEAN Blue Economy” organized by China Institute for Reform and Development; Institute of Asian Studies, China Foreign Affairs University; and, Maritime Institute of Malaysia  held in Kuala Lumpur, Malaysia on August 25, 2025.