No Country Is an Island

Wang Fengjuan

Many islands can be found off the coast of China. Even more can be found in ASEAN countries. It is a common aspiration of China and ASEAN to strengthen cooperation in the development of island economies.

“We are committed to promoting cooperation within and outside the South China Sea，” said Jose Alvarez， governor of the Philippine province of Palawan， at the Boao Forum for Asia Annual Conference 2018 in Chinas Hainan Province on the morning of April 9.

Alvarez noted that the Philippines and China are close neighbors who share the South China Sea. Joint efforts will keep it a sea of peace， friendship and cooperation， he added. His province is keen on strengthening cooperation with Hainan for mutual development.

At a panel discussion themed “A New Era of Cooperation： Inclusive Development of Island Economies，” participants exchanged views on the cooperative development of island economies and explored new ideas for development on islands. They called for a bigger role for island economies in developing the 21st Century Maritime Silk Road under the principles of extensive consultation， joint contribution and shared benefits.

Inclusive Development of Island Economies

“Island economies are very different from inland economies，” commented Chi Fulin， president of China （Hainan） Institute for Reform and Development. “Without opening-up， there would be no vitality and market motivation.” Based on a tropical island， Hainan Province is only 30 years old. Its managers and residents alike have great expectations for further opening-up， from service trade to other sectors including the establishment of a free trade port.

The development of Hainan over the last 30 years is a microcosm of all of Chinas development. Major economic indicators have rallied in a positive direction the entire time. The world is changing rapidly， and the world economy is transforming profoundly. Like other island economies， Hainan faces a narrow internal market， a marginally qualified work force， increasing instability in the global economy and non-traditional security challenges such as energy and resource security and food security. No island economy can overcome such roadblocks alone since the security and development interests of all are so closely related. Cooperation alongside competition is desirable to achieve inclusive development.

To achieve this goal， Shen Xiaoming， governor of Hainan Province， released a five-point proposal.

The first point is continued promotion of interconnectivity. Island economies are independent geographical units. Connectivity with the outside world is of utmost importance for them. At present， Hainan is working to build a Pan-South China Sea hub for international trade and shipping， which will connect to more than 100 international routes within two to three years and become part of a smooth， fast， convenient and efficient regional transportation network.

Second is continued promotion of industrial cooperation. In recent years， Hainan has made remarkable achievements in economic development. It has built new drivers to accelerate the development of the new economy. A sophisticated industrial capacity has emerged. Hainan is ready to work with other island economies along the Belt and Road to integrate resources， capitalize on respective advantages， promote pragmatic cooperation in various fields and achieve mutual benefits and win-win results.

Third is continued promotion of cultural and people-to-people exchange. Island economies should encourage multi-level， wide-ranging and institutionalized exchange in this field， which will serve the needs of the people and create real benefits for them.

Fourth is continued collaboration to address global challenges such as climate change. We cant escape environmental challenges. It is imperative to face them head on. In recent years， Hainan has actively responded to the challenges posed by climate change by pursuing green and low-carbon development and accelerating the development of renewable energy.

The final point is continued intellectual support for the inclusive development of island economies. Hainan will build a think-tank alliance by creating a global island economies basic database. Regional think tanks are welcome to join the initiative.

Enhancing Competitiveness of Island Economies

For participants from China， the Philippines and other countries， a topic of common interest is finding methods to capitalize on the advantages of island economies to create more space for development.

Shen Xiaoming remarked on Hainans impressive achievements over the last 30 years of reform and opening-up. In the upcoming 30 years， the province will continue the same path. Reform and opening-up will remain the major means for Hainans inclusive future development.

Alvarez agreed with Shens comments. He believes that the Hainan governors proposal will facilitate the sharing of the island economies. He believes that the Philippines and China can work closer together on Pan-South China Sea economic cooperation. He hopes that after the Boao Forum for Asia this year， more concrete projects will emerge thanks to direct talks between Palawan and Hainan， which will reinforce friendship between the two provinces.

A well-known entrepreneur from the Philippines， Larry Chan， president of Liwayway （China） Company （manufacturer of Oishi snacks）， has a strong interest in cooperation between the two countries as well as between islands. He noted that the Philippines consists of more than 7，000 islands. As a country dominated by island economies， the Philippines faces great challenges， the most severe of which is logistics. “Difficulties in inter-island logistics affect all aspects of our production process，” said Chan， “which in turn affects our competitiveness in the global economy.”

Chan thinks that China and the Philippines should strengthen cooperation in island economies. A priority of the Belt and Road Initiative is infrastructure development， which will create new opportunities for the Philippines to improve connectivity between its islands.

Chan is confident that the Philippines can benefit from the Belt and Road Initiative because newly-developed infrastructure will overcome many physical barriers， reduce costs and enhance efficiency and competitiveness. “For example， new airports have been built on quite a few islands，” commented Chan. “They enable fresh fruits and seafood to be delivered directly to target markets.”

Alvarez looks forward to closer bilateral cooperation. He stressed that Palawan is an island province. When its bitterly cold during winter in China， its still very pleasant in Palawan， where residents and tourists alike enjoy warm sea water and plenty of seafood. The Philippines has worked hard to upgrade its tourism infrastructure including 600 kilometers of new expressways， which are expected provide a better experience for Chinese tourists.

Presidential Special Envoy of the Philippines Carlos Chan， also chairman of Liwayway Holdings Company， believes that the unique geographical and marine advantages of Hainan can help it achieve more in reform and opening-up in the new era.

“The theme of this years Boao Forum annual conference is ‘An Open and Innovative Asia for a World of Greater Prosperity. Under the guidance of such a grand vision， economic cooperation between China and the Philippines will surely foster unlimited opportunities and possibilities，” said Carlos Chan. “I look forward to participating in and witnessing more profound cooperation between China and the Philippines.”