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Despite the impact of SARS, exhibitions and trade forums involving China and its neighboring economies boomed this year.

Zhang Xiaoji, director general of the Foreign Economic Relations Department of the Development Research Center, a State Council think-tank, said that to further economic and trade ties with surrounding countries has become a new focus for China.

"With both bilateral and multilateral methods, China has taken measures to actively promote trade cooperation with other countries," Zhang said.

In October, leaders of China, Japan and the Republic of Korea ( ROK) signed a joint declaration in Indonesia to promote tri- lateral cooperation.

Chinese premier Wen Jiabao proposed a feasibility study for establishing an eastern Asia free trade area (FTA).

China's proposal and a series of measures have shown China's sincerity and determination in enhancing regional cooperation, Zhang said.

Among China's top ten trade partners in 2003, seven were neighboring countries and regions, including Japan, Hong Kong, the ROK, Taiwan, Malaysia, Singapore and Russia.

Trade volume between China and other parts of Asia climbed from less than 50 billion US dollars in 1992 to 222.4 billion US dollars in 2002, taking up one third of China's total trade volume in 2002.

Lu Jianren, an economic researcher with the Chinese Academy of Social Science, said the increase surpassed China's overall external trade growth during the same period.

"That growth indicated that neighboring countries and regions have become another emphasis besides the traditional markets of Europe and the United States," Lu said.

Xu Changwen, director general of the Asia, Africa Department of the Chinese Academy of International Trade and Economic Cooperation, said Chinese imports and exports increased rapidly in 2003.

Imports and exports with eastern Asia made up nearly half of China's total trade. Over 70 percent of foreign direct investment to China was from east Asia countries or regions.

China's trade deficit with east Asia partners may exceed 10 billion US dollars in 2003, Xu predicted.

"With the recovery of eastern Asia's economy, the economic and trade relations between China and its neighboring countries and regions will maintain increasing momentum," Xu said.

China's economic cooperation with southern and middle Asian countries also progressed gradually along with the fast development of political relations.

Indian Prime Minister Atal Bihari Vajpayee visited China last June. The two sides signed a declaration on bilateral relations and overall cooperation, which provided political assurance for Sino-Indian economic and trade cooperation.

Chinese Commercial Minister Lu Fuyuan told his Indian counterpart accompanying Vajpayee's visit that the two countries should make joint efforts to increase annual trade volume to 10 billion US dollars in 2005.

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