What if ASEAN member states and China cannot make a deal on South China Sea? Are they disputing on the territory or resources associated with the terroterial claim?

ASEAN seeks common ground on South China Sea spat - ministers Thu, Jul 19 2012 By Prak Chan Thul PHNOM PENH (Reuters) - Southeast Asian states are working to craft a joint ASEAN statement over the South China Sea issue on Thursday, Cambodia's foreign minister said, in an apparent effort to repair discord that led to an unprecedented failure to issue a communique after a regional summit last week. The foreign ministers of Indonesia and chair country Cambodia said the Association of Southeast Asian Nations (ASEAN) said they hope to agree on "a number of issues" among all 10 ASEAN member states imminently after failing to do so for the only time in its 45-year history. "We, ASEAN foreign ministers, agreed in principle on a number of issues over the South China Sea issue," Cambodian Foreign Minister Hor Namhong told a brief news conference, without giving details. "I hope that by tomorrow morning, we will receive approval confirmation from all ASEAN foreign ministers in order to announce these points." The disagreement has exposed how deeply ASEAN member states have been polarised by China's rapidly expanding economic influence in the region. The announcement came after Indonesian Foreign Minister Marty Natalegawa visited Cambodia on Thursday as part of his whistle-stop Southeast Asian tour aimed at rescuing the group's tattered image. Natalegawa said the key points of the statement had been outlined and the "basic positions" could be announced imminently if the other states were to approve. "If a consensus is confirmed in the next few hours, in the next few moments, then perhaps, the chairman would be in a position to formally announce those basic ASEAN positions," he said, without elaborating. Bickering over how to address the increasingly assertive role of China -- an ally of several ASEAN states -- in the strategic waters of the South China Sea has placed the issue squarely as Southeast Asia's biggest potential military flashpoint. China has territorial claims over a huge area covering waters that Vietnam and the Philippines say they also have sovereignty over. All three countries are eager to tap possibly huge offshore oil reserves. On Thursday, China's state-run news agency Xinhua said a fishing fleet of 30 boats, including a 3,000-tonne lead boat, arrived at what China calls the Zhubi Reef in the Spratly Islands for fishing on Wednesday, almost a week after leaving port in south China's Hainan province. The reef is claimed by Taiwan, the Philippines and Vietnam. "Although Chinese fishermen have fished in the South China Sea for centuries, the size of the fishing fleet makes it a rarity," Xinhua said. ASEAN included Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. In 2002, ASEAN and China adopted an informal code of conduct in the South China Sea to avoid conflict and ease tensions. Last week they indicated efforts to work on a formal code, although no firm commitments were made. U.S. Secretary of State Hillary Clinton attended last week's summit and called on all parties, including China, to make clear exactly what their claims were in the South China Sea and open multilateral talks, something likely to rile Beijing, the resident superpower that a bilateral approach. The United States insists it is neutral on the issue, but having recently signed military cooperation agreements with claimant states Vietnam and the Philippines, China has become increasingly wary of its intentions. (Writing by Martin Petty; Editing by Ed Lane) © Thomson Reuters 2011. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. This copy is for your personal, non-commercia

ASEAN: Tap middle class cash July 20, 2012 by Wanwisa Ngamsangchaikit Filed under News, Southeast Asia Leave a Comment BANGKOK 20 July 2012: Thailand needs to tap ASEAN’s emerging middle class convincing them Thailand is a “must-see” destination, Association of Southeast Asian Nations general secretary, Surin Pitsuwan, told delegates attending an ASEAN Economic Community 2015 seminar Thursday. The 10-member countries of ASEAN attracted 81 million travellers, last year, an increase of 10% year-on-year, of which 60% were foreigners and 40% ASEAN citizens. Mr Surin suggested: “Thailand should adopt a new model to improve the country quality and competitiveness instead of using cheap labour and natural resources. He told the tourism industry it needs to seek new partners in the region, create new attractions, activities, and tour programmes for travellers particularly for repeaters, many of them ASEAN citizens. Emphasising the spending power of a middle class society in the 10-country region, Mr Surin said it was imperative for Thailand to play catch up. “On average Thais earn US$4,300 to US$4,500 in income per head per year, which is the rate of a mid-income country when compared to neighbours Singapore at US$45,000; Brunei US$37,000 to US$38,000; and Malaysia US$9,400 to US$9,500.” He was addressing around 200 business executives many of them from the tourism and service sector on the challenges they will face in the approach to ASEAN Economic Community 2015. ASEAN in terms of revenue ranked ninth worldwide in 2011 with over US$80,000 million invested in the region. Of that investment, 70% circulated in the services segment mainly to tap ASEAN’s growing middle class who have strong purchasing power. “They need more quality of life and good services, therefore, Thailand needs to find out how to upgrade from a mid-income country to a higher ranking and achieve a US$10,000 per person per year income.” “To do it the country needs to development research, design, create intellectual property, build new products and have proper copy right in terms of production to raise the country competency and get out of the mid-income trap.” In addition, he recommended that there should be more cross border investment specifically between SMEs, while inbound tour operators in the meantime have to adjust themselves and turn to the outbound market to build intra ASEAN travel. “This is the real integration of ASEAN to make the region a single destination,” he said. He recommended that the Board of Investment of Thailand should be a leader to survey and study ASEAN member countries and provide information to Thai tour operators on potential hotel, tourist attractions and suitable places for investment. Sources: http://www.ttrweekly.com/site/2012/07/asean-tap-middle-class-cash/