Beijing's efforts to promote economic development and its participation in China-ASEAN free trade area are in line with the fundamental interests of ASEAN member states. The 11th National Congress of the Communist Party of Vietnam held this month focused on promoting the country's synergy, boosting its renewal process, and making efforts to make it a basically modern industrial country by 2020.

Like Vietnam, other countries that have territorial disputes with China in the South China Sea know the economic advantages of maintaining good neighborly relations. This means that disputes between China and the Southeast Asian countries will not escalate and become a threat to regional stability.

Trade and investment between China and ASEAN member states have risen considerably in recent years. China is ASEAN's largest trading partner while ASEAN is China's fourth, and trade between the two sides reached a record $292.78 billion last year.

China-US relations have showed signs of improvement. Last year might have seen many a rift between China and the US. But this year cooperation is likely to be the guiding principle between Beijing and Washington. The US returned to Southeast Asia last year to use the disputes in the South China Sea to its advantage and strengthen its presence in the region to counterbalance China's influence. Washington even claimed that freedom of navigation in the South China Sea and unhindered access to Asia's common waters were in its "national interest" and in line with international law.

Beijing opposes Washington's involvement in the South China Sea disputes. Many Southeast Asian countries, too, are reluctant to see the US' undue intervention in the South China Sea disputes, because they want them to be solved through dialogue and friendly negotiations between the disputing countries.

The resumption of China-US military contacts and President Hu Jintao's state visit to the US last week have improved relations between Beijing and Washington. Even if the foreign ministers of China and the ASEAN member states discussed the territorial disputes in the South China Sea, the US factor played a very limited role.

The improvement of China-ASEAN relations has raised hopes that the disputes can be solved through dialogue and negotiations.

Deepening interdependence in the region, propelled by economic development and China-ASEAN cooperation, will be helpful in solving the disputes amiably and properly.

The author is a research scholar and deputy director of the Institute of Asia-Pacific Studies, the Chinese Academy of Social Sciences.

(China Daily 01/26/2011 page9)