China and Southeast Asian countries have successfully concluded talks on setting up a free-trade zone next year to boost economic integration and ease concerns about China's growing international clout.
A pact promoting investment links was signed on Saturday in Bangkok between Commerce Minister Chen Deming and economic ministers from the 10-member Association of Southeast Asian Nations (Asean).
China is the eighth-largest investor in Southeast Asia, with investment of US$2.2 billion last year. Accumulated Asean investment in China is US$52 billion.
Mr Chen said free and fair mutual investment would be established after barriers to trade in goods and services had been removed.
Up to 7,000 items would have no tariffs from next year in the joint market of nearly 2 billion people. Chinese people would be able to enjoy a variety of Southeast Asian fruits and Asean residents could purchase Chinese clothes and electrical appliances at cheaper prices, he said.
Despite the recession, China's investment in Asean countries has surged, with Premier Wen Jiabao announcing in April a US$10 billion fund to support the region's infrastructural development.
Mainland analysts said that Beijing had maintained its policy of offering economic incentives in exchange for political understanding and support from China's suspicious Asian neighbours.
