ASEAN signs investment deal with China
The Association of South East Asian Nations (ASEAN) have signed an investment free trade agreement with China, which will see governments of the 10 ASEAN nations and China facilitate faster settlement of business and labour disputes, and repatriation of business earnings.
It also stipulates that countries provide protection for foreign direct and portfolio investments, and compensation against damages caused by riots and political disturbances, as well as decrease in restrictions on equity ownership and land acquisition.
The new FTA is the third between ASEAN and China; the first two covered goods and services. It comes as Chinese investment in the region increases, and follows Chinese Premier Wen Jiabao’s announcement of a US$10 billion China-ASEAN Fund on Investment Cooperation for infrastructural development in April.
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