Energy was high on the agenda of the Second East Asia Summit in Cebu. Leaders from 16 countries-10 ASEAN countries, China, Japan, South Korea, India, Australia and New Zealand-signed the Cebu Declaration on Energy Security. The agreement aims to help the countries in the region reduce their dependence on conventional fuels through intensified energy efficiency programs, expansion of renewable energy systems and bio-fuel production and utilization.

They also agreed to pay close attention to the security, environmental, health and safety dimensions of the energy sector. Further, they tasked relevant officials to look into a regional nuclear safety regime.

For China and ASEAN, everything is proceeding in a planned manner, experts noted. The agreement on trade in services signed in Cebu is expected to help firms from the Southeast Asian economic bloc gain improved market access to China's burgeoning service sector, including banking, information technology and tourism.

It marks a key step forward in building the China-ASEAN Free Trade Area and lays the foundation for its full and scheduled completion, Wen said in his keynote speech at the ASEAN-China Summit.

An agreement on merchandise trade took effect in July 2005, following an early harvest program of initial tariff cuts on meat, fish, dairy products, vegetables, fruits and nuts. The agreement on trade in services was one of the remaining key documents to be devised for the world's largest free trade area between China and ASEAN set to materialize in 2010, in addition to an investment agreement.

Trade between China and ASEAN countries has boomed in the past 15 years, with bilateral trade volume growing more than 20 percent a year to reach $160 billion in 2006. The two sides are each other's fourth largest trading partners.

Shi was confident about the development of the China-ASEAN Free Trade Area, which he believes is progressing as scheduled. There are almost no barriers in the way, he added. However, the expert stressed that when the free trade area is established, the two sides should make the most of its advantages to benefit their economies.

Looking at China-ASEAN cooperation in 2007, Shi said it would be a year of concrete action. He said the two sides' pioneering efforts to formulate frameworks for cooperation are nearing the end and the focus at present is on honoring the commitments and tapping the potential of existing mechanisms.

"A pragmatic approach will dominate bilateral relations this year," he said. "At the same time, the two sides should see to it that the problems that crop up along with their ever-tightening economic and human bonds are properly addressed."