Relations between China and ASEAN have been developing well in all areas, particularly after they signed the joint statement on a strategic partnership in 2003. To accelerate the establishment of the China-ASEAN Free Trade Area (CAFTA), China has hosted the annual China-ASEAN Expo and Business and Investment Summit in Nanning since 2004. In July 2006, China proposed an initiative to expand economic cooperation in the Bac Bo (Tonkin) Gulf, together with cooperation in the Greater Mekong Sub-region (GMS) and the Nanning-Singapore economic corridor, to form a “one axis and two wings” strategy, in which Guangxi and Yunnan provinces get directly involved.

The friendly neighbourliness and comprehensive cooperation between Vietnam and China has constantly developed in various areas in recent times. Both countries have maintained a regular exchange of visits at high-, ministerial- and local levels to promote mutual understanding and expand cooperation. Bilateral economic and trade cooperation has also made impressive progress. Two-way trade reached US$10 billion last year and is expected to hit US$12 billion in 2007.

The two countries are speeding up the demarcation of their common border and the planting of border markers along the line. They are determined to complete the work on land and sign a new document on border management regulations in 2008.

Meanwhile, they are actively implementing the Tonkin Gulf Demarcation Agreement and the Tonkin Gulf Fishery Cooperation Agreement, which play an important role in maintaining security and order in the gulf. They have agreed to conduct regular negotiations on sea-related issues to find out a fundamental and long-term solution acceptable to both sides, while making efforts to maintain peace and stability in the East Sea.

Cooperation and exchanges between Vietnam and the Chinese provinces of Guangxi and Yunnan have also developed constantly. Recently, seven Vietnamese northern border provinces have signed an agreement with the two Chinese provinces to establish a joint working group to promote economic cooperation.

During trips to China, top Vietnamese leaders and leaders from ministries and localities have also visited Guangxi and Yunnan provinces. Early this year, Yunnan Governor Qin Guangrong and Secretary of Guangxi Party Committee Liu Qibao visited Vietnam and expressed their desire to strengthen links with the country.