APR News

The leaders of ASEAN member countries welcomed the formal establishment of the ASEAN Community (starting from December 31, 2015) comprising the ASEAN Political-Security Community (APSC), the ASEAN Economic Community (AEC) and the ASEAN Socio-Cultural Community (ASCC), which is a culmination of a five-decade long effort of community building since the signing of the Bangkok Declaration in 1967. ASEAN Community is expected to contribute significantly to the peace and stability in the region, towards greater regional prosperity and an access for all ASEAN peoples to the benefits of ASEAN integration.
The participants committed to elevate political-security cooperation aimed at protection of human rights, fundamental freedoms and promoting social justice and the values of tolerance.
In light of the changing regional strategic landscape, the ASEAN leaders reiterated their commitment to maintain and enhance ASEAN Centrality in the evolving regional architecture and in the mutually beneficial engagement with external parties.
The participants of the summit welcomed the enhanced role of the ASEAN-Business Advisory Council (ASEAN-BAC) in the regional integration efforts, including promoting the AEC to various stakeholders in the region and foreign business councils.
The leaders noted that the vast majority of the infrastructure investments in the region have been led by governments with limited involvement of institutional investors. In this regard they emphasized a need for the dialogue with global investors aimed at garnering private investors to fund ASEAN infrastructure development projects.
During the summit the ASEAN leaders discussed the terrorism and extremism, situation in the Middle East and the Sustainable Development Goals (SGSs) implementation issues.
The leaders adopted a number of important documents, including 2015 Kuala Lumpur Declaration on the Establishment of the ASEAN Community; Kuala Lumpur Declaration on ASEAN 2025: Forging Ahead Together; ASEAN Convention Against Trafficking in Persons, Especially Women and Children; Kuala Lumpur Declaration on Ageing: Empowering Older Persons in ASEAN; ASEAN Joint Statement on Climate Change 2015; Regional Framework and Action Plan to Implement the ASEAN Declaration on Strengthening Social Protection; Kuala Lumpur Declaration on Higher Education; Regional Plan of Actions on Elimination of Violence Against Women; Regional Plan of Actions on Elimination of Violence Against Children; and Declaration on ASEAN Post-2015 Environmental Sustainability and Climate Change Agenda.
During the summit the ASEAN leaders also engaged with the heads of governments of China, Japan, the Republic of Korea, India, Australia, New Zealand, Russia and the United States. The leaders welcomed the elevation of partnerships with New Zealand and the United States to the strategic level. The participants said that they looked forward to the completion of the three independent studies on ASEAN Membership Application by Timor-Leste and reiterated their commitment to provide assistance for Timor-Leste’s capacity building process.
Chairman’s Statement of the 27th ASEAN summit
Press-release at the official ASEAN web-site

The official ceremony of presentation of foreign ambassadors’ letters of credence to the Russian President Vladimir Putin was held on November 26, 2015.
Vladimir Putin received letters of credence from 15 foreign ambassadors, in particular representing the Asia-Pacific countries (Park Ro-byug (Republic of Korea), Saman Kumara Ranjit Weerasinghe (Democratic Socialist Republic of Sri Lanka), Ms Hayati Binti Ismail (Malaysia)).
In his statement Vladimir Putin noted that the 2015 witnesses 25 years of diplomatic relations with the Republic of Korea – Russia’s important and ambitious partner in the Asia-Pacific Region. Vladimir Putin emphasized that Russia intends to implement jointly with the Republic of Korea major trade and investment projects.
Taking the letter of credence from the ambassador of Sri Lanka, Vladimir Putin said that enhancing the contractual legal framework for cooperation between Russia and Sri Lanka creates preconditions for deepening bilateral relations in various areas of, in particular fisheries and agriculture.
According to Vladimir Putin, Russia will continue promoting political, trade and investment cooperation with Malaysia. Malaysian Prime Minister Najib Razak is expected to attend the anniversary Russia-ASEAN summit to be held in May 2016 in Sochi.
Press-release at the official web-site of the President of the Russian Federation

Seminar “Operational Aspects of Work with Chinese Investors and Partners” organized by the NCC APR jointly with RSPP, KPMG with support by Clifford Chance was held on November 25, 2015

The main aim of the seminar was to discuss practical aspects of cooperation with Chinese partners, in particular investments to China, typical mechanisms for investment and financing from Chinese companies, specific features and stages of approval of outgoing investment and financing in China. The speakers also shared their experience of making agreements with Chinese investors as well as cooperation with the Silk Road Fund and other Chinese financial institutions.
Opening the seminar, RSPP Vice President for International Relations, the member of the NCC APR Board Dr. Marina Larionova emphasized that the relations between Russia and China have a long history and continue to develop extensively. China provides unique opportunities for Russian businesses. Thus, increasing understanding of operational aspects of work with China is vital to guarantee mutually beneficial cooperation.
Head of the School of Asian Studies of the HSE Faculty of World Economy and International Affairs, member of the NCC APR Expert Council Dr. Aleksey Maslov shared with the participants the features of Chinese business protocol and negotiating process.
KPMG China Partner Jessica Xie talked about the Chinese foreign investment trends and the Chinese economy sectors which are perspective for investment as well as interests and concerns of Chinese investors in Russia. Jessica Xie also provided a short overview of China`s social and economic development, geographic concentration of foreign direct investment and taxation system.
The seminar participants included the representatives of the Russian companies working in or planning to enter the Chinese market, Russian governmental authorities, consulting companies and law firms specializing in supporting business cooperation with China, and experts.
The seminar caught great interest among business representatives. The number of participants exceeded 150. NCC APR plans to continue the practice of holding such seminars - both country- and sectoral-oriented.
Program (in Russian) 

Jessica Xie. Introduction to Doing Business in China (in Russian, in English)

Muzaffar Salaev. Typical mechanisms for investment and financing from China (in Russian)

Julie Zhu. Particularities and Stages of Approvals for Outbound Investments in China (in Russian, in English)

Presentation by the Russia-China Investment Fund (RCIF) (in Russian) 

According to the Prime Minister of the Russian Federation Dmitry Medvedev`s instruction the Russian Trade Representation will be established in Ulaanbaatar, Mongolia. The Trade Representation`s activities will focus on expansion and diversification of Russian goods and services export to Mongolia, providing support to the interested participants of international trade in getting orders on delivery of goods, works and services, including information and intellectual properties, as well as promotion of Russian investment projects, support in establishing and developing of trade relations between Russian and Mongolian private individuals and legal bodies.
Press-release at the Ministry of Economic Development of the Russia official web-site (in Russian)

The second ASEAN Business Seminars and Business Policy Dialogues were held to promote awareness and understanding of the ASEAN Economic Community's (AEC) key initiatives to the business community on November 9-11, 2015 in Ho Chi Minh City.
Two additional information packs covering the ASEAN Single Window (ASW) and Establishing A Company in ASEAN Member States (AMS) were shared and validated with the private sector at this seminar.
The participants highlighted the importance of facilitating SMEs' access to information on the AEC.
Information Packs
Press-release at the official ASEAN web-site

The European Council on 16 November 2015 gave the go-ahead for negotiations to start on a free trade agreement with the Philippines.
The negotiations will be led by the Commission on behalf of the EU, in consultation with the Council's Trade Policy Committee.
Background
In April 2007, the Council authorised the Commission to negotiate a free trade agreement with the Association of Southeast Asian Nations (ASEAN), of which the Philippines are a member. In December 2009 however, following the suspension of region-to-region talks, it decided to pursue negotiations with individual ASEAN countries on a case-by-case basis. The strategic objective of a region-to-region agreement was nevertheless maintained. In October 2013, the Council extended the scope of its negotiating directives to include investment protection.
The EU is currently negotiating with two ASEAN countries - Malaysia and Thailand - whilst talks with two others -- Singapore and Vietnam - have concluded. The Commission will continue its efforts to launch free trade negotiations with other ASEAN countries.
Press-release at the official EC web-site

Leaders Week Video Streaming at the official APEC web-site
The APEC Week`s events include in particular APEC Ministerial Meeting (16 - 17 November), APEC CEO Summit (16 - 18 November), APEC SME Summit (17 November) and the key event - APEC Economic Leaders' Meeting (18 - 19 November) as well as various expert meetings.
Video Schedule

The event was hosted by the ASEAN-Korea Centre in partnership with the Federation of Korean Industries (FKI) at the FKI Convention Center.
The delegates of 10 ASEAN Member States presented infrastructure projects and policy measures in the fields of transport, energy, and ICT to Korean business people.
The discussion of the Forum focused on current status and challenges to the Master Plan for ASEAN Connectivity and financial solutions for ASEAN connectivity.
The Forum also included one-on-one business meetings aimed at networking among the Korean business community, ASEAN government organizations and experts in the infrastructure field.
The amount of investment required for infrastructure projects in ASEAN is the second largest in the world after the Middle East. According to McKinsey, USD3.3 trillion in investments will be required in transport, water, energy and ICT areas in the ASEAN countries between now and 2030. When ASEAN Economic Community consisting of about 620 million people and a combined total GDP of USD2.4 trillion is established, enormous opportunities for large-scale infrastructure projects will be created.
ASEAN Master Plan on Connectivity is a concept that envisions a well-connected ASEAN to bring the peoples, goods, services and capital closer together. Adopted at the 17th ASEAN Summit in 2010, the master plan has made continuous progress to enhance physical connectivity, institutional connectivity and people-to-people connectivity.
Press-release at the official ASEAN web-site

As the First Deputy Minister of Economic Development of Russia Alexey Likhachev noted at the second China-Russia Expo in Harbin, China, starting from the next year the Expo will be organized by rotation in Russia and China. In 2016 the event is planned to be held in St. Petersburg or Ekaterinburg.
Currently the Expo has become one of the most important events aimed at further development of trade, economic and investment cooperation between Russia and China, in particular through presentations of regional investment opportunities of both countries. The event is attended not only by the representatives of Russian and Chinese companies and governmental authorities but also entrepreneurs from other counties, in particular Germany, the Netherlands, Belgium, India, Singapore and the Republic of Korea.
Press-release at the official web-site of the Ministry of Economic Development of the Russian Federation (in Russian)

According to the October 2015 Asia and Pacific Regional Economic Outlook Update (REO Update), growth is moderating in Asia, but the region will continue to outperform the rest of the global economy. The growth will moderate slightly to 5.4 percent in 2015–16, in line with global developments. “Domestic consumption, supported by robust labor markets and lower energy prices, will be the main growth driver, and the recovery in advanced economies will provide further support,” said Changyong Rhee, Director of the IMF’s Asia and Pacific Department.
The report also notes that negative growth spillovers from China to the rest of the region are probably larger than previously anticipated, and exports continue to fall short of global growth. While the rebalancing in China’s import demand is one cause, a broad-based weakness in global import demand is also a major factor behind the trade slowdown in Asia.
Growth prospects within Asia will likely diverge once again, including among the largest economies. China’s economy will continue to rebalance toward domestic consumption and is expected to grow by 6.8 percent and 6.3 percent in 2015 and 2016, respectively.
In Japan, growth is projected to recover to 0.6 percent in 2015 and 1 percent in 2016, supported by a wage-driven recovery in consumption, as well as a modest improvement in investment and exports. Domestic demand should also benefit from lower oil and commodity prices and the Bank of Japan’s accommodative policies.
In India, the ongoing economic recovery is expected to be underpinned by lower oil prices and robust domestic demand, and GDP is expected to grow 7.3 percent in 2015, rising to 7.5 percent in 2016.
Growth in major ASEAN economies is projected to moderate in 2015–16, owing to a number of factors, including lower commodity prices (Indonesia and Malaysia), political uncertainty (Malaysia), and weaker growth in China.
Given the slowdown across most of the region, and the challenging global economic environment, the REO Update recommends policies to support demand while lowering vulnerabilities. Accommodative policies should be considered, particularly for countries that have policy space and where the decline in growth has a clear cyclical or temporary component.
The report recommends that structural reforms should remain a priority to bolster medium-term growth by facilitating investment and job creation, and helping to reduce near-term vulnerabilities. In China, reforms should continue to help rebalance the economy away from debt-fueled investment. This would include, among other moves, leveling the playing field between state-owned-enterprises (SOEs) and the private sector, and improving the management of local government finances.
Press-release at the official IMF web-site
Regional Economic Outlook Update: Asia and Pacific