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SIRI KERTAS KERJA

WORKING PAPER SERIES

ICS Working Paper No. 2009-22

Regional Integration and Environmental Protection:

The Case of Beibu Gulf in the Context of

China-ASEAN Free Trade Area and

Pan-Beibu Gulf Cooperation

Huang Yaodong

Institute of China StudiesUniversity of Malaya

50603 Kuala Lumpur, MALAYSIA

http://ics.um.edu.my/

Institut Pengajian China

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ICS Working Paper No. 2009-22


The Case of Beibu Gulf in the Context of

China-ASEAN Free Trade Area and Pan-Beibu Gulf Cooperation

Huang Yaodong

Email: [email protected]

June 2009

All Working Papers are preliminary materials circulated topromote discussion and comment. References inpublications to Working Papers should be cleared with theauthor(s) to protect the tentative nature of these papers.

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The Case of Beibu Gulf in the Context of China-ASEAN Free Trade Area

and Pan-Beibu Gulf Cooperation

Huang Yaodong*

Introduction

The Pan-Beibu Gulf Cooperation was proposed by the former secretary of GuangxiCCP committee in July, 2006 at the first forum of Beibu Gulf Economic Cooperation.

Since its propose, all relative country leaders, such as Nong Duc Manh, the generalsecretary of Vietnam’s communist party, Nguyen Tan Dung, Vietnam’s premier minister,Ronald Susilo, president of Indonesia, Arroyo, president of the Philippines, Li Xianlong,Singapore’s president and so on express their appreciation to the concept when beinginterviewed by Guangxi delegation led by the former secretary Liu Qibao. Respectivelythey express their will of cooperation with China, especially with Guangxi in the buildingof infrastructure, port, logistics, tourism, resource exploitation and so on.

It is known that since the establishment of China-ASEAN Free Trade Area and thepropose of Pan-Beibu Gulf Economic Zone, the building of infrastructure, logistic, coastalcities, exploitation of resource and so on between China and ASEAN have been greatlyimproved, and the bilateral trade got a rapid progress. As the frontier area for China to ASEAN countries, Guangxi possess the advantage both on land and sea, in the first half

of 2008, the total amount of trade between Guangxi and ASEAN was over 2 billiondollars, places the first in growth rate in China.

With the exploitation of Guangxi Beibu Gulf and the implementation of Early HarvestProgram, Guangxi, especially Guangxi’s Nanning, the capital of Guangxi Zhuang Autonomous Region, Beihai, Fangcheng Port, Qinzhou, Yulin and Chongzuo receive thegood advantages of opening-up and exploitation. Noticeably, the exploitation of GuangxiBeibu Gulf economic zone has been Chinese national strategy, so the exploitingprospect of Guangxi Beibu Gulf is beautiful. However, there will be lots of issues to besolved when exploiting the gulf and establishing the Free Trade Area. Here I will focuson the environmental protection in the light of the exploitation and negative impact inimplementing the Early Harvest Program as a case to describe my opinion on how toprotect the natural resource and alleviate the economic impact under the framework of

China-ASEAN Free Trade Area and Pan-Beibu Gulf Economic Cooperation.

* Dr Huang Yaodong, Research Fellow and Associate Professor, Institute of Southeast AsianStudies, Guangxi Academy of Social Sciences, Guangxi Zhuang Autonomous Region, China. Email: [email protected]

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Background: Guangxi and CAFTA

I. General Situation of Guangxi Agriculture before the EHP was Implemented

Guangxi is a province with higher rate of agriculture, its cultivated area is 2,614,200

hectares, covering 11.04 % of Guangxi’s total land area. Guangxi is rich in south-Asiantropical fruit, vegetable, sugarcane and so on. The total cultivated area for grain crop is56 million mu.

Guangxi belongs to the area of sub-tropical wet monsoon climate with ample heatand rain quantity, and is therefore one of the provinces with the most superior conditionin water and heat, holding the title of Natural Greenhouse in winter. Guangxi possessrich of famous, special and dominant subtropical fruit, such as litchi, longan, pomelo andso forth. In 2006, the output of Guangxi’s fruit broke for the first time through 6 milliontons.

II. Basic Situation of Guangxi’s Carrying out EHP

EHP is an important part of China-ASEAN Free Trade Area. In the program, the tariffof more and more agricultural or relative products are reduced in order to accelerate theimplementation of China-ASEAN cooperative framework agreement and make all sidesof China-ASEAN benefit from the free trade area. By far, six ASEAN countries and Chinahave carried out the program. Evidently, all relative countries or areas benefit greatlyfrom the EHP. But just like the relationship between investment and environmentalpollution, while EHP benefits China, especially Guangxi, it also impacts badly on someagricultural industries here. So it’s necessary for Guangxi, like other areas of China totake some active measures.

Since Guangxi carried out comprehensively EHP from January 1st, 2004, the scale

of mutual trade between Guangxi and ASEAN has been expanding, but being similar instructure of agricultural industry, comparing with the agricultural product exported from ASEAN, Guangxi’s agriculture, especially the fruit and vegetable industry faces not onlythe developing opportunity, but also great challenge.

1. The Primary Result of Guangxi’s Carrying out EHP

Under EHP from January to July of 2006, Guangxi’s gross import-export quantitywas 101.35 million Yuan with the growth rate of 28.6%. From January to July of 2007,with the ASEAN’s certificate of origin, Guangxi’s import commodity from ASEAN shared0.12 billion Yuan of tariff preference, and for the export goods, shared the correspondingpreference with Chinese certificate of origin.

On the other side, the export quantity and value of agricultural product from Guangxito ASEAN were respectively increased from 210,000 tons, 50.90 million dollars in 2002to 383,000 tons, 90.844 million dollars in 2006, the annual average growth rate wererespectively 16.2% and 15.6%. In addition, Guangxi got a great improvement inexploiting the markets of Malaysia, Thailand and Singapore, and the export value wasincreased from 880,000 Yuan in 2002 to 1.66 million Yuan in 2006.

Noticeably, the export achieved more business opportunities, and the enthusiasm ofthe enterprises runs continually up. The products in EHP are mainly agricultural andsideline products, involving nearly 600 kinds of product. The plan of tariff-reduction

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contains more export business opportunities. The good news strengthened greatly theconfidence of Guangxi export enterprises.

2. Challenges from EHP

There are five challenges from EHP, which are: The Export Increased Rapidly:

ASEAN Has Been Guangxi’s Base of Foreign Fruit; The Protective Action of ExceptionalInventory Affects Guangxi’s Fruit and Vegetable in ASEAN’s Markets; The PrivateEnterprises Worked Well While State-owned Enterprises Got Worse in Import andExport; Guangxi’s Consumers Got More Benefit, Some Varieties of Tropical Fruit WereShocked and Low Quality Made the Advantage of Guangxi’s Fruit.

III. Impact of Import-export Change on Guangxi Peasants’ Income

It is evident that the change of import-export agricultural product affected Guangxipeasants’ average income, but only a little, and at the same time the growth of exportaffected peasants’ average income more greatly than that of import.

1. Impact from the Export Growth

The growth change of Guangxi peasants’ average net income was unanimouswith the export growth of agricultural product. That was, with the increment of agri-product export, Guangxi peasants’ average net income would also increase, while thechange rate of which is far higher than that of peasants’ average net income. It showedthat only the high rate of agri-product export could peasants’ net income be increased.

2. Impact from the Import Growth

The growth change of Guangxi peasants’ average net income was opposite to

the growth change of import agricultural product, that is, with the growth of import inagricultural product, peasants’ income will decline, but peasants’ income will not declineunless the import of agricultural product change more greatly.

IV. Future Impact and Countermeasures

1. Export Potentiality

The agricultural product exported from Guangxi to ASEAN, especially to Vietnamis mainly temperate fruit, vegetable and grain, Most of these fruit are rare, or hard toplant in ASEAN nations. With the further economic integration between China and

ASEAN, great improvement of Vietnam’s living standard and the strengthening ofVietnam’s transit ability, the temperate fruit and vegetable exported from Guangxi toVietnam will increase, but because the exported agri-product from China is protected bythe Exceptional Inventory of some ASEAN nations, it is estimated that the growth rate oftheir import will be lower than that of China’s. At the same time, some evidences showthat Thailand’s agricultural product imported from Guangxi’s port is increasing rapidly, itis estimated that with the improvement of Vietnam’s traffic situation and furtherintegration of ASEAN’s economy, Thailand’s import agri-product from Guangxi throughVietnam will increase. Generally, the agri-product exported from Guangxi to ASEAN will

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continue to increase, but it’s also possible that the export quantity of some varieties willdecline.

2. Import Trend

Both Guangdong and Guangxi are provinces that import ASEAN’s fruit mostly.

The fruit that Guangdong import from ASEAN are mainly durian, longan, and banana,the total quantity of these four varieties of fruit covered 91% of Guangdong’s import fruitfrom ASEAN in 2005. Besides, As the main consuming province in China that import ASEAN’s fruit, most of Guangdong’s importing fruit was consumed locally. Thailand isGuangdong’s largest fruit resource. Guangxi’s import fruit from ASEAN is mainlywatermelon, longan, banana and so on, Vietnam has always been Guangxi’s largestfruit resource. Guangxi’s import fruit and vegetable is not only consumed in Guangxi, butall over the country. Because of special geography that borders with ASEAN nationsboth on land and sea, it is convenient for Guangxi to import ASEAN’s vegetable and fruitand sell to other provinces and regions of China. Guangxi can also be the largestdistributing center for ASEAN’s fruit and vegetable, so Guangxi’s import quantity of fruitfrom ASEAN will possibly keep increasing.

3. Impact of Increasing Export on Peasants’ Income

The impact of increasing export on fruit peasants’ income is evident, becausethe price of export fruit is far higher than the domestic. The key of fruit export is to havethe sale channel, but the premise is that their export fruit must reach the quality demandof export.

4. The Impact of Import on Peasants’ Production and Income

At present, the quantity of domestic mango can not satisfy the broad domesticmarket. Furthermore, the maturing season of domestic mango is different from that of

ASEAN’s. In recent years, lots of Tianyang’s mango has been exported to ASEAN.

5. What Was Affected the Most

For Guangxi, maybe longan is the very fruit that is affected the most. By the endof 2005, 106,000 mu of longan area and 9,000 mu of litchi area in Chongzuo city, thelargest longan city in Guangxi were reduced. There are lots of reasons why Chongzuocity cut so much longan and litchi tree. In fact, the most important is that in the last yearsGuangxi have planted plenty of longan and litchi trees, making the structure of Guangxi’sfruit out of balance, the EHP’s being carried out is only one of the reasons.

6. Countermeasures that the Government Took

Aiming at restraining the impact of EHP on Guangxi’s agricultural industry, alllevels of Guangxi’s government took some countermeasures to reduce the negativeeffect from EHP: Leading Peasants to Exploit Actively the Domestic Markets;Establishing Guangxi’s Brand of Agricultural Product; Developing Quality Vegetable andFruit Greatly; Strengthening the Educative Training and Technology Model andPropagating to Peasants.

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V. Constructive Suggestion

At present, all levels in Guangxi have different views to the impact of EHP onGuangxi’s agricultural product. Generally, the government has overestimated the shockof EHP to Guangxi’s agricultural product, while the peasants have underestimated theshock. We think that there indeed exist the impact of EHP on Guangxi’s agricultural

industry, but not as badly as what we expected. We consider that EHP offer Guangxi’sagricultural product both opportunities and challenges, the shock to Guangxi’s agri-industry is within what Guangxi can bear, but so long as we take suitable and activemeasure, we can reduce it to the lowest level. So we propose the following subjects:

1. Take All Kinds of Measure to Develop the Trade Relationship between Guangxi and ASEAN2. Trying to Develop by Quality and Brand, Promote the Competition of the Product3. Establishing the Collective and Distributive Center of ASEAN’s Fruit, Develop Greatlythe Further Processing of Fruit and Vegetable4. Strengthening the Propagating and Leading, Using Fully the Preferential TaxRegulation.

5. Trying to create a convenient and smooth environment of passing through the custom

Led by the government, Guangxi should coordinate all departments that involve in theimport-export custom, establish the system of joint conference, push actively and firmlythe information of custom, communication and business, simplify the custom procedureand promote the custom efficiency.

Making Beibu (Tonkin) Gulf’s Mountain Green and Water Blue Forever

With the development of economic globalization and regional economic integration, the

exploitation and utilization of natural resource is on-going. The nature is moaning, andthe environment is crying for help. The dying nature and polluted environment can nolonger bear the weight. It is urgent to save nature and the environment. The GuangxiBeibu-Gulf economic zone is an important part of the world, especially the ocean andcoastal area. After the preceding section looking at the position of Guangxi in the contextof CAFTA, this paper moves on to its main focus: the case of Beibu (Tonkin) Gulf in thenexus of regional integration and environmental protection in the context of CAFTA andPan-Beibu Gulf Cooperation.

Considering the lesson learnt from the pollution of China’s Bohai Bay, whileopening and exploiting the natural resource of the Beibu-Gulf economic zone, theocean’s maiden bay, the protection of nature and environment should be the mostimportant issue to be considered.

The so-called natural resource refers to the natural factors that relate to humansocial development and can be used to produce usual value and influence on theproductivity of labour. It can be divided into tangible resources which include land, water,animal, plant, mineral, etc. and bodiless resources which include light, heat, etc. Naturalresource is the material foundation of human survival and development as well as thespring of social material welfare. It is one of the most important basis for sustainabledevelopment, as it contains biological resource, agricultural resource, forest resource,national land resource, mining resource, marine resource, water resource and so on.

With the proposal of the concept of Round Beibu Gulf and Pan-Beibu Gulf, as well

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as the permission from the Chinese State Department for the opening and exploitation ofthe Guangxi Beibu-Gulf Economic Zone, Beibu Gulf, which had been the starting port ofSilk Road 2000 years ago and has been in silence for the past 1000 years, receivesanother spring of opening and exploitation. However, when opening and exploiting, theSouth China Sea – which contains parts of Guangxi, Guangdong and Hainan of Chinaas well as parts of Vietnam – meets an important problem, which requires the

cooperation and coordination of all fields to deal with it, namely environmental protection.The contents of and reasons for of the problem, as well as how to settle the problemshould be a project for the correlative governments in Beibu Gulf.

I. It’s a Historic Demand and Good Opportunity to Open and Exploit Beibu Gulf

With the rapid progress of the China-ASEAN Free Trade Area, the formal proposal ofthe China-ASEAN “One Pole Two Wings” statute, the implementation of the China-Vietnam “Two Corridors One Circle”, the great exploitation to the west, and theeconomic radiation of east and south of China, especially when the exploitation of theGuangxi Beibu Gulf economic zone has become a national developing strategy, Guangxi

Beibu Gulf, the place that had been the starting point of marine Silk Road receivesanother exploiting spring.

The Beibu-Gulf economic zone is located at the hinge of Chinese SouthernEconomic Zone, Southwest Economic Zone and ASEAN Economic Zone. It is the onlycoastal area in Chinese exploiting area, and also the area that borders with ASEANnations both on land and sea. The strength of its position is obvious, and its strategicstatus is remarkable. The resources in Beibu-Gulf, which include land, ground,freshwater, ocean, agriculture, forest, tourism and so on is very rich with a largeenvironmental capacity, good eco-system, high carrier for population, low exploitingdensity and great developing potentiality. It is an important region of the Chinese coastalarea with new plan and structure for modern harbor groups, industrial groups and citygroups of high quality

Since the Chinese reform and opening-up, especially since Chinese strategy ofexploiting the west was implemented, the development of economy and society ofBeibu-Gulf economic zone has gained great achievement and entered into the bestdeveloping period in history. The economic strength gets more remarkable, the rate ofeconomy aggregate of Guangxi province grows increasingly, the building ofinfrastructure makes a significant progress, the throughput of coastal ports is over 500million duns, the transporting situation has gradually been improved, the role ofsouthwest sea corridor has been well played, special and competitive industries developrapidly, a scale of large national projects has been built or will be built, the opening levelis continuously improved, the economic cooperation with other civil areas is beingdeepened, and its stature in the cooperation with ASEAN gets increasingly remarkable,the living standard of people here has been increased, and the ecology establishment

and environmental protection has been strengthened.The establishment of China-ASEAN Free Trade Area is rapidly improved, the

establishment and implementation of a series of cooperative systems such as China- ASEAN expo, summit of China-ASEAN business and investment and GMS hasdeepened China-ASEAN cooperation, and laid the foundation for Beibu Gulf to play itsrole of cooperative frontier and bridge-tower toward ASEAN nations.

China pays great attention to the development of Beibu-Gulf coastal area, takingclearly Beibu-Gulf economic area as the emphasis area of exploiting the west, openingand cooperating toward ASEAN, putting forward new demands, endowing with new

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missions. The opportunities of developing Beibu-Gulf economic zone is coming, as thedeveloping situation gets ready and the time is mature.

Accelerating the opening-up and exploitation of Beibu-Gulf relates not only withGuangxi’s self-development, but also the whole national development, so its strategicsignificance is remarkable. The opening-up and exploitation of Beibu-Gulf economiczone is propitious to accelerate wholly Guangxi’s economy and society, promote from a

whole the developing level of national area and economy, consolidate the national unityand safeguard the frontier steady, carry out deeply the strategy of western exploitation,strengthen the function of southwest marine corridor, accelerate the opening to theoutside world and economic development of southwest area, forming the strategichighland of bringing along and upstanding the western exploitation; perfect the economicoverall arrangement of Chinese coastal and frontier area, make the development inmiddle, east and west area more harmonious, connect more tightly with each other andpour new strong power into the developing strategy of national economic society, andquicken the establishment of China-ASEAN Free Trade Area, deepening the strategiccompanionship between China and ASEAN toward property and peace.

Economic globalization and regional economic integration is developing rapidly. InBeibu Gulf, the western exploitation is being put forward, the building of pan-delta

economic zone, CEPA and the establishment of China-ASEAN Free Trade Area is beingquickened, China-ASEAN expo’s being held in Nanning, Guangxi, forever, thedevelopment of GMS, the building of China-Vietnam “Two Corridors One Circle” and soon are Beibu-Gulf’s multi-opportunities. All above brings Beibu Gulf which is endowed bynature in location an unprecedented developing opportunity, building for it a gooddeveloping environment.

II. The Beibu-Gulf Eco-system at Present

“Lots of little waves gets together on the seasand, dolphins are playing with the flyingsea-gulls, pearls are shining under the sun and moon, mangroves is growing around the

bank…….” This is the view before you when you come to Beibu Gulf. Beibu Gulf, whichis famous for the clearest ports, is a place with a total area of 130,000 square kilometers.It lies in the northwest parts of China. The Guangxi Beibu-Gulf economic area is locatedin the central part of Beibu-Gulf economic circle. It is the most convenient marinecorridor in southwest part of China and also the most important bridge and strategichinge to accelerate the whole cooperation between China and ASEAN. There are richresources in the region, including petroleum, natural gas, marine biology, minerals,energy resource and so on.

Beibu Gulf is a clean marine region with blue sea, blue sky and clear air. Accordingto the testing material, during the tenth five-year period, the Beibu-Gulf pollutingresource and polluting material is being reduced 46 per cent annually, the sediment in allarea here accords with the first class, the attainment rate of marine creature quality is

100 per cent. There is rich rain here, the rain and heat shares the same season, all ofwhich fits the plants’ growth very well. Presently, there are 8354 kinds of vascular plants,of which the special plants are Cathay silver fir, camellia chrysantha tuyama and so on.The number of known species of terrestrial vertebrates is 884 altogether. Beibu Gulf isone of the areas with more wildlife. The national rare animals that are specially protectedare the white-headed monkey, lizard in Yao mountain and so on, of which the white-headed monkey is unique. It is an area with the most collective distribution of mangrovein the country. There is altogether 8375 hectares of mangrove area here and it covers 38per cent of total area of 22639 hectares, arranges the second in the country.

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Beibu Gulf is a semi-enclosed bay at the northwest of the South Sea, the top (north)of which is the Guangxi Zhuang Autonomous Region, the east of which is the Zhanjiangcity in Guangdong province and Hainan province, the west of which is Vietnam. By far, itis China’s cleanest blue bay, blue sea, blue sky. Clear air is Beibu-Gulf’s most valuableresource and grand.

The Guangxi Beibu-Gulf economic zone owns a beautiful coastal view-sight, and

thus is a rich tourist resource. There lies the capital city of Guangxi, Nanning, the onewith the fame of Green City, Beihai Silver Seashore, the one with the fame of ChineseFirst Seashore as well as Qinzhou’s Sanniang Bay, Fangcheng City’s Jing interest place,Shangsi’s national wooden park, Miliion Mountains and so on.

But the Beibu Gulf which has been in silence for long faces the challenges ofenvironmental destruction when receiving the opportunities for economic growth. It hasbeen forecasted that Beibu Gulf will confront the following calamities unlessenvironmental problems are taken into consideration beforehand:

Pollution of acid rain. It is because people utilize more and more petroleum andchemicals. The main harm it causes is that a large stretch of woods will be dead. Thereare currently three areas suffering from acid rain: Europe, North America and thesouthern area of Chinese Yangtze River.

Greenhouse effect (or global warming). The reason why the globe gets warm is thatcountries produce more and more carbon dioxide, among which America is the first andChina is the second. The main disasters it leads to is that the ice in both the southernand northern poles of the globe will melt, and then the sea plane will get higher. According to scientists’ calculations, if the carbon dioxide is not restricted, by the end ofthe century, the global atmosphere will increase by 2 to 5 centigrade. And the sea planewill increase 30 to 100 centimeters, and hence leads to a catastrophic result.

Land desert. The desert in the earth is eroding the land with a speed of 60 millionhectares annually, namely a speed of 10 hectares per minute. This is because thevegetations of the plains are getting destroyed. In China, 500 hectares of land isswallowed by the desert each day. In recent years, one after another sandstorm hasacted as severe warnings for this change.

The area of wood is being reduced. At present, 12 million hectares of forest isdestroyed every year in the world, most of which occurs in the developing countries. Oneof the reasons for that is poverty, as people there have to change their valuable forestresource for foreign exchange; the second reason for the deforestation is that they aredestroying the forest in order to open up new land. There being less land and morepopulation in China, the situation of destroying the forest for opening up new land getsfrom bad to worse – the coverage rate of the forest is now only 13 per cent, 120th in theworld.

Some species of creatures are dying out. Presently, the global species of creaturesare experiencing the sixth time of dying out. Having been hunted fiercely besidessuffering from the pollution of the environment, more and more species are confrontingthe disaster of extinction.

Loss in land and water. Since people are destroying the forest in large scale, lots ofwaste mountains and bare hills will lead to great floods when it rains, then the water andland resource will lose idly. All this soil is brought into the rivers and lakes, filling up thelakes and reservoirs and hence raising the riverbed, reducing the capacity of reservoirsand lakes and bringing closer the disaster of flood and waterlog.

The rubbish is piled into mountain heaps. At present, the increasing rubbish,including industrial and living rubbish has been a tricky problem for the world. Havingbeen done up, the rubbish in China not only increases, but covers the cultivated land,polluting the air and water underground.

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Air pollution in the cities. In China, the problem of air pollution is getting very serious.There are now 600 cities in China, in which less than 1 per cent can reach national firstclass in air quality. The reason for the pollution lies in two aspects – the first is that Chinauses coal which gives out piles of polluting material, as main energy resource; thesecond is that in China, more and more cars produce exhaust gas.

All the above problems surprise and worry the world. Therefore, when opening and

exploiting Beibu Gulf, we cannot treat them lightly.The relevant document shows that a quarter of all illnesses are caused by

environmental pollution. It is estimated that 2 million people every year die earlier frominner or outer polluted air. Lots of developed countries gets their achievement at theexpense of developing countries; they are exporting their industries and their influencesto the developing countries.

In food, the global agricultural loss caused by plant diseases and pests is estimatedto be 14 per cent. The report says that the accelerating speed of planting area for cropshas reduced since 1987, but the usage density of land is increasing badly. Theunsustainable way of land usage causes land degeneration and becomes a threat Iterms of weather change and to existing species. It has threatened a third of the globalpopulation by pollution, land erosion, water depletion, and increase in the amount of

salty soil and ecosphere breach. The population growth, over-consumption and trendfrom consuming crop to meat continuously will increase the demand of food 2.5 times to3.5 times of nowadays’.

Globally, the situation that living species face is looking bleak. According toestimations, 60 per cent of the function of the ecosystem has degenerated or is beingused in an unsustainable way. From 1987 to 2003, the number of existing vertebrates infresh water was reduced by nearly 50 per cent, faster than the species on land or in sea.

III. Lessons Drawn from Others’ Mistakes in Opening and Exploitation

Guangxi’s aim of opening and exploiting Beibu Gulf is to turn this region into an

integrated economic zone with better infrastructure, stronger competitive port and idealindustrial distribution, and finally into a city group with the most influence in thesouthwest area of China, a China-ASEAN regional centre of process and manufacture,logistic distribution, business and trade as well as information and cultural exchange.

The historical reality proves that people’s developing activities always pay the priceof environmental destruction. So how should Beibu Gulf, the later developing areaprotect the environment to the utmost? The issue attracts a general attention fromdomestic and foreign experts. In the seminar on Pan-Beibu-Gulf economic cooperationheld in July 2007 in Nanning, the capital of Guangxi, China, the environmental issues ofBeibu-Gulf’s exploitation were specially attended to by the participants. Generallyspeaking, there are blue skies, white clouds and fresh air everywhere in Guangxi; thuswe should safeguard this clearest area, in the development of Beibu Gulf. We should not

follow the same old way of polluting first and dealing with the problem later. In the courseof exploitation, we should not only introduce investment, but also protect theenvironment and continuable development.

The Beibu Gulf which lies in the northwest of China’s South Sea is not only China’snearest corridor from the seaport of the southwest area of China, but also China’scleanest area. But with the great promotion of exploiting Guangxi Beibu-Gulf EconomicZone, a large scale of population pours into Beibu Gulf, causing the city scale here toexpand. So, Beibu Gulf faces more and more pressure in protecting its environment andmaintaining its environmental balance. Beihai’s silver seashore, which is called “the first

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global seashore”, had received a lesson of exploitation. In the early 1990s, in the firstcivil tourist developing upsurge, there were lots of buildings built and run by differentowners in the main viewpoint of this seashore within slightly more than one year, such asnursing homes, hotels, rest houses and so on. It is proved by facts that buildingsbecame Silver Seashore’s environmental killers. By far the buildings here have beenremoved and its true face is recovered.

The exploitation of China’s Bohai bay offered us a reverse lesson. Bohai baypossesses rich land and natural naval resources. It is the most developed economicarea in the north of China, covering an important position in Chinese economicdevelopment. However, while people are highly enthusiastic to see Bohai’s economicdevelopment, they are on the other hand worried about the worsening environmentalissues here. According to official estimations, it takes Bohai bay 16 years to exchange itsseawater once. The capacity of Bohai bay is very limited, and its self-cleaning ability isvery poor, but the polluting degree of the Liao River, Hai River and Yellow River that pourinto the Bohai bay are placed respectively as the first, second and fourth in the sevenwater-systems of China. Lots of industries of fertilizer, papermaking, leather, chemicalfiber, aluminum industries and rubber industries lie along the bank; thus, the industrialwaste water handled or unhandled flows along the land surface into Bohai bay. The

polluted water Bohai bay receives every year is 2.8 billion duns, covering 32 per cent ofnational polluted water, and the polluted solid waste it receives every year is more than0.7 million duns, covering 48 per cent of national polluted solid. Presently, Bohai’senvironmental situation is as follows: land-sourced pollutants increase continuously, thepollution in the sea area is worsening, and the scope expanding; the disaster of red tideoccurs occasionally; the fishery resource is decaying; the marine eco-environment isdegenerating, and the species of marine creatures are suffering an obvious decline. Ifdecisive measures are not taken to prevent the pollution, Bohai will be a Dead Seawithin 10 years. Even if one drop of polluted water is not permitted to fall into Bohai then,it will take at least 200 year for itself to clean. As for the pollutant sediment in the bed ofthe sea, it will take even longer to deal with it up.

From the national level, we had suffered large losses from the bad environment:

firstly, the Great Leap Forward activity in 1957 not only led China into a difficult economicsituation, but accelerated the environmental pollution and ecological breakage.Especially during 1966-1976, the environmental pollution and ecological breakagereached a fearsome level, and finally led to the pollution of acid rain, greenhouse effect,ozonosphere breakage, land desert, decline of forest area, species’ dying out, reductionof water resource, loss of water and land, rubbish disaster, air pollution and so on.

The past failure should be the lesson of the future. Bohai bay’s developing way is amirror, the bad result of the Chinese Great Leap Forward left us pain of snake biting,these two lessons are unforgettable. To avoid the same mistakes, we should think of thepain after the failure, and thus profit by the lessons of the past, by trying not to let BeibuGulf be the second Bohai bay.

Nowadays, the environment and situation of construction projects of Guangxi Beibu-

Gulf economic zone is good. It manifests the following: firstly, good developingopportunities; secondly, good developing environment, in that there is support for thestrategic idea of opening and developing Beibu Gulf; thirdly, good developing foundation,as the building and development of the economic zone has achieved a good start, theinfrastructure such as the road net, channel, electricity and water supply and drainagehas been more perfect, some large industries and programmes have been introduced,the steps of opening outward gets faster; fourthly, good developing tendency; and lastly,large developing potentiality, in that the most urgent affair is to strengthen its overallplanning and coordination, as well as put the programmes into effect. To be of

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importance, the eco-function plan should be strengthened and a monitored controlsystem of environmental protection should be established.

IV. Environmental Protection Must Be the Most Important and First Work in Beibu

Gulf’s Opening Outward and Exploitation

For a long time, dismantling the old and building the new occurred constantly inconstruction, and some natural resource and culture heritage confronts a severedestruction. When planning and building cities and towns, how should people protect thenatural resources, embody the cultural specialties, protect the historic and culturalheritage, maintain the local color, national color and traditional scene? It’s an importantproject placed before the Beibu Gulf‘s relevant countries and regions

Take mangrove protection as example. Mangrove is a kind of eco-beneficial forest andis an important part of the coastal backbone forest shelter belt. It’s an important eco-building content to strengthen the protection of mangrove wetland, and thus an importantduty for forestry authorities, as it helps in maintaining the security of people’s lives,

properties in coastal area and social stability, accelerating the coastal economic andsocial development. Presently, with the fast establishment of China-ASEAN Free Trade Area and the pan-Beibu Gulf cooperation from imagination to reality, the pan-Beibu Gulfarea is becoming an impressive hotspot for investmentsand fast developing economiczone. Paying attention to and protecting Beibu Gulf’s green sky and blue water has beena common hot topic. Under the historic background of opening and exploiting Beibu Gulf,new demands to protect the mangrove have been made.

As an important part of the Beibu Gulf area, Guangxi is located in the connectingarea of the China-ASEAN Free Trade Area, Pan-Beibu Gulf, Great Mekong sub-regionalarea, Chinese Pan-Pearl Delta and six southwest provinces. The total area is 236,000square kilometers, while the population here totals 49 million. Guangxi is rich in creatureresources with an important ecological position. It is also an important region in national

ecological construction. Guangxi belongs to areas of subtropical monsoon climate withplenty of rain. As the rain and the heat shares the same season, there are rich species ofcreature and lots of kinds of plant.

In recent years, in the light of the request of scientific development, Guangxi strivesto take wooden resource protection, strengthening the eco-construction as a way ofemphasis in promoting the economic development. Organizing six projects of forestryecosystems, such as the compensative projects of forest ecological benefit, projects ofreturning land for farming to forestry, the project of wildlife and nature area, the pilotproject of dealing with stony desertification, the project of rural ecology and energy,organizing the activities of Establishing Green Homes and New Rich Villages, promotinginsistently the afforestation, fulfilling carefully the project programmes of protectingnational wetland, tightening the legal supervision, and arousing widely social forces to

participate in the forestry works, so the obvious result was gained in the protection offorest resources and the improvement of the ecological environment. At present, thetotal forest area in Guangxi is 12.52 million hectares, places the sixth largest in China;the forest coverage rate of which is 52.71 per cent, the fourth highest rate in the country;total accumulation of live timber is 510 million cubic meters, the seventh largest of China;the gross of marsh gas tank is 2.937 million, while the rate of residence is 36.7 per cent,the first of China. Fifty-nine protective areas of natural resource with the total area of1.49 million hectares have been established, protecting effectively 80 per cent ofGuangxi’s eco-systems on land, 20 per cent of important wetland and 45 per cent of

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mangrove, as well as preserving Guangxi’s best Proterozoic broadleaves. SinceGuangxi’s ecological situation is continuously improved, last year the gibbons with blackcap which is considered to be extinct in China for over 50 years and dying out in theworld were discovered in Guangxi province.

In Guangxi-Beibu Gulf’s new round of opening outward, exploitation and building,Guangxi government pays close attention to the eco-environmental protection and

forestry building. From a strategic and long-term developing view, they propose aregional ecological strategic aim to build Green Beibu Gulf, protect the blue sky and seaand accelerate the concerted development of economy and society. The proposal of theaim makes a higher claim for us to protect the natural resource and forestry. Guangxi’saim to develop Beibu Gulf in the future is to make the infrastructure more perfect, makethe ports here more competitive with more ideal industrial arrangement, as well asattempt to be the centre of China-ASEAN regional process and manufacture, logistic,business and trade, information and cultural exchange.

Such a great concept of building! Can Beibu Gulf bear the weight? Can its naturalecology be well protected? To develop Guangxi Tonkin-Gulf area in an orderly fashion,Guangxi has established a Guangxi committee of Beibu Gulf planning and management,as a whole planning and coordinating the infrastructural building, layout of great

industries, integration of coastal resource and management of the overall plan of fourcities, namely Nanning, Beihai, Qinzhou and Fangcheng.

Fangcheng city is one of the twelve pivotal ports in 24 coastal cities, and is thelargest port in the west of China. In the course of quickening the construction of port andcoastal industries, Fangcheng city steps in the way of new industrialization, prohibitingthe programmes of high pollution, high consumption, high output with low input to start,strengthening the environmental calculation, monitoring and protection, controllingstrictly the utilization of coastal area, protecting well the natural resources such as themangroves.

Tang Shibao, Mayor of Qinzhou City, says: Firstly, do well in the environmentalassessment during the revision of the Urban Master Plan of Qinzhou. A beard welllathered is half shaved. Qinzhou City will start with three respects: from the source,

Emergency Mechanism and Long-term Mechanism, establish strictly a responsiblesystem of environmental protection, and strengthen environmental protection in waysranging from inviting investment to selecting investment. The sewage treatment designof the million-ton refining project under construction has changed from secondarydischarge standard to first grade. Several billion yuan has been invested as a result.

Beihai was self-imposing when dividing the Environmental Function Zone. 78square kilometers urban district was determined as first class air quality function zone. Air quality, surface water quality and noise environment quality has been strictlycontrolled. 7000 million yuan has recently been invested in transformation, relocation,closing and governance of more than 170 traditional enterprises and contaminativefactories, such as papermaking, printing and dyeing, starch, ceramic and so on. Morethan 20 projects which don't meet the requirement of the first class air quality control

have been rejected during the same time. In 2005, the adjacent sea area of Beihai Citywas mostly first class clean water, among which is the famous Silver Seashore whereexcellent water was provided 81.9 per cent of a year. Mayor of Beihai city Wen Kahuasays with confidence: Beihai's object is to be the most suitable-to -live "Chinese CoastalBack Yard Garden", the central city of Beibu bay's regional internationalization. In orderto protect the regional environment, an offshore area functional zone, marine functionalzone and Beihai Action Plan have been made, basic works such as environmentalCapacity calculation have been accomplished, and coastal industrial zone environmentalimpact assessment has been organized and developed. Usage of Guangxi Marine Area

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was promulgated and efforts have been made to keep good regional environmentalquality.

V. Future Opening and Development Measures

According to the data concerned, diseases caused by environmental factorsaccount for 25 per cent of all kinds of diseases all around the world. There are about 200million people who die of indoor or outdoor air pollution every year. In developingcountries, there are almost 300 million people who died of diseases related to water, andmost of the victims are ≤ 5 years old. Developed countries acquire achievements inpollution treatment while damaging developing countries' interests. Industrial productionand its effects have been transferred to developing countries.

What a group of astonishing numbers! Never shall it be neglected under the newsituation of Beibu bay construction!

Beibu bay is among the cleanest areas in China. It's actually a tranquil and isolatedbay, merging into regional and even world trend. All industries will develop at the same

time. A new round of development in Beibu bay meets common development of allindustries, absorbing capital to solve the key problem of fund shortage, and encounterenvironmental problems:

Coordinate efforts from all sides. Regional characteristics of Beibu bay’senvironmental problems are more obvious compared to economic problems. That'sbecause regional eco-chains are connected, and the dependent degree of ecologicalenvironment among adjacent areas is rather high. The region includes Beihai,Fangcheng, Qinzhou, Zhanjiang, Haikou of China and seven major cities of Vietnam,including Haifang and Xialong. Cooperation between regional government is thereforestrngthened, establishing Beibu Gulf Rim Economic Development and EnvironmentalProtection committee, which released the announcement of protecting Beibu Gulf’sregional environment and strengthening its publication to promote the protection and

development.Check strictly on the transferred and introductive industries. It is certain for Beibu

Gulf to attract investment from outside when opening and developing, but in the courseof introducing investment, we cannot lower our threshold, we should consider theenvironmental cost even while thinking of its economic benefit. Meanwhile, when puttingforward the policy of lower threshold, we should keep enough place for futuredevelopment, not loosening environmental needs only for political achievement. If wecan not check on the pass well, the new projects will be tomorrow’s polluting ones, so weshould prevent the environmental pollution and ecological destruction from the source.

Formulate the principles of paid use environment, paying for environment.Environment is a kind of resource, it should not be developed and used without payment.The projects which are harmful to environment should pay for it. Therefore, we should

levy a tax in the principle of paying for sewage, for utilization, and for development anddamage.

Build up the idea of a Beibu Gulf brand of resource and environment. In order toprotect the brand and realize continuable development, we should pay high attention toenvironmental protection and take precautions. When opening and developing, takesome corresponding measures; under the direction of scientific development, try tomake nature harmonize with human; and, last but not least, do not exchange thesacrificed eco-environment with temporary prosperity. Try to do as follows: developmentis important, but environmental protection comes first; we need not only silver and

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golden mountais, but blue water and green mountains.Strengthen the cooperation in infrastructure construction and scientific research.

Establish the monitoring network of regional environment and information platform forpublic environment, strengthen the cooperation of environmental monitors in respectiveregional cities; Timely, accurately and perfectly grasp the water situation, quantity of airpollution as well as its changing trends; realize the regional information shares and

exchange, providing with scientific strategic foundations for the regional water and airpollution.

Intensify the calculation of the environmental effect in energy restructure. Establishthe general index systems of regional resource and environmental calculation; establishthe research funds for the environment and resources, strengthen the research work andindustrialize structure of energy techniques, clean resources, utilize renewable resourceand so on. From the angle of continuable development, we should introduce more newprojects by lowering the energy consumption in cleaning producing, and reducing thepollution discharge, thus saving resources and emptying more environmental space.

From the angle of global marine resources, we should pay attention to the followingaspects when utilizing and developing Beibu Gulf:

Developing and protecting the ocean territorial resources. The natural resources of

Beibu Gulf sea area is a part of territorial resources, and is the developing foundationthat Beibu Gulf lives by. Ocean resources not only has great potential for development,but also the double tasks of being protected urgently, so we should implement thestrategy of developing reasonably to make Beibu Gulf a base of developing continuablythe ocean resource. Beibu Gulf’s mineral resources includes oil, gas, gas hydrate, placerand so on. Its developing potential is enormous. All levels of government in Beibu Gulfwill strengthen the exploration of ocean mineral resources, increase the known reserves,and enhance the ensured degree of national resource. Try to find large oil and gas fieldsso as to increase the ocean gas output. Pay attention to the protection of the marine liferesources that are declining, and reduce the maritime fishing to zero or even to anegative growth so as to recover the resource of main kinds of fishes and importantfishing ground. Utilize scientifically and reasonably the shallow offshore waters and

beaches that is suitable for aquaculture. Reduce the self-pollution of farming industries,maintain the eco-situation of farming fields, promote actively the ecological andoptimizing farming ways.

Utilize variably the ocean resources abroad. According to the relevant regulation ofthe United Nations Convention on the Law of the Sea, the ocean resources of lots ofglobal coastal nations can be developed cooperatively with foreign countries. Accordingto Chinese national conditions and peculiarities of ocean resource, from the strategicangle, we should not only tap the potential of ocean resources, but go out of the countryand utilize variably foreign resources. Make use of Beibu Gulf’s political and geopoliticalstrength by trying to cooperate with coastal neighbouring countries and nations withbetter gas conditions and resources, as well as exploring and developing its maritimegas resources and optimizing the distribution of resources.

Develop high technology and promote the utilization of ocean resource. Thedevelopment of ocean resources should be supported by marine technology, with theaim of promoting the development of resources and enhancing the contribution rate. Wewill develop the exploration technology of ocean resource to find new developableresources; develop the technology of utilizing the ocean resource to get a high effectwith low cost; develop the ocean resource of low density and grade, high developingdifficulty and high cost; develop the fine processing of marine resources; develop andutilize the marine functional food, marine medicine product, fine chemical product and soon, promote the rate of second utilization and junk recycle; develop the protection of

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marine environment and technological system for eco-restoration, including thebehaviour and influence of pollutants, the biological effect of pollutants and monitor,forecast, control and manage technology of partial ecological change so that we can beprepare for recovering the coastal eco-environment.

Establish the economic mode of marine ecology. There have been severe eco-economic troubles in the ocean, such as the over-development of important ocean

resource, degeneration of marine eco-environment and so on which influence greatlycoastal development. The continuable utilization of ocean resource is decided togetherby marine environment, marine resource, marine development as well as thedevelopment of coastal economy and society. The development of ocean resource stepsin the way of utilizing resource and developing industries continuously, developingecology with high quality, increases continuously the developable resource (but thedeveloping scale must be limited in the bearing capacity of marine resource andenvironment).

Participate actively in the scientific research of global ocean and protection of oceanresource. Participate actively in all kinds of ocean affairs of the UN system, contributingto the development of ocean science, protection of ocean resource and environment,perfecting the regulation of the ocean resource and environment protection. Participate

in the international activities of global and regional researches on ocean science,international cooperation on the development and protection of ocean biologicalresource, international cooperation on the protective field of ocean ecology, as well asinternational cooperation on the exploration and exploitation, environmental protection ofinternational seabed area, making a favourable environment and condition for China toutilize the global ocean resource.

Work out and perfect the developing programme and the protection of oceanresources. The exploration and exploitation of ocean resources need the macro plan andguidance, as well as need to establish the layout system of resource. Lay out anecessary programme for special resources, such as a programme of fishery resource,ocean oil, gas resource and so on as well as regional local programmes, as well as forma programme system of nations, provinces, cities (counties). Straighten out the relations

of different kinds of exploiting programmes for ocean resource, relations betweenresource exploitation and environmental protection, make sure the reasonableexploitation of ocean source and its effective protection.

Establish and perfect the management system of ocean resources. Management ofocean resources is a piece of system engineering. Strengthen the management ofutilizing sea territory and ocean resource, enforcing the law of exploiting managementand ocean resource utilization, and ensuring to exploit and protect the ocean resourceaccording to law.

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References

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Gu Xiaosong 古小松, Huang Yaodong 黄耀东 et al.（2006-2008）,《中国-东盟年鉴》

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Gu Xiaosong 古小松, Huang Yaodong 黄耀东 et al. (2007),《泛北部湾区域合作研究》

[Research on Pan-Beibu Gulf regional cooperation], 广西人民出版社出版 (Guangxi

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Jiang Xuelin 蒋雪林, 《广西: 不会以牺牲环境来发展北部湾》 [Guangxi will not sacrifice

the environment for the development of Beibu Gulf], fromhttp://www.3608.com/News/Industry , 2007.06.07.

Qin Guanghua 覃广华 and Liu Yuanyuan 刘媛媛 , 《北部湾开发直面环保挑战》

[Exploitation of Beibu Gulf confronts the challenge of environmental protection], fromhttp://www.GX.xinhuanet.com, 2007.9.3.:

《体制困境造成环境与人心的双重污染》 [System environment leads to the doublepollution of heart and environment], 南方都市报 (Southern City Daily ), 27th March 2008.

<http://www.ep.net.cn>

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遗产》 [Planning law for both urban and country should pay attention to the inheritance

of nature, history and culture], from http://www.GX.xinhuanet.com, 2007.10.28.

Author: Dr Huang Yaodong is a research fellow and an associate professor at the

Institute of Southeast Asian Studies, Guangxi Academy of Social Sciences, China. By far,he has participated in 10 projects on international issues, and published more than 200articles in the papers or journals. At present he is working on a project entitled “AResearch on the Role that Overseas Chinese Business Plays in Guangxi’s Beibu GulfConstruction”. This chapter is a part of his project entitled “How to Protect the BeibuGulf’s Environment”.

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