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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 Studies
University of Malaya
50603 Kuala Lumpur, MALAYSIA

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

Institut Pengajian China
1
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

Email: huangyd99999@yahoo.com.cn












June 2009



All Working Papers are preliminary materials circulated to
promote discussion and comment. References in
publications to Working Papers should be cleared with the
author(s) to protect the tentative nature of these papers.

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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
*




Introduction

The Pan-Beibu Gulf Cooperation was proposed by the former secretary of Guangxi
CCP 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 general
secretary of Vietnams communist party, Nguyen Tan Dung, Vietnams premier minister,
Ronald Susilo, president of Indonesia, Arroyo, president of the Philippines, Li Xianlong,
Singapores president and so on express their appreciation to the concept when being
interviewed by Guangxi delegation led by the former secretary Liu Qibao. Respectively
they express their will of cooperation with China, especially with Guangxi in the building
of infrastructure, port, logistics, tourism, resource exploitation and so on.
It is known that since the establishment of China-ASEAN Free Trade Area and the
propose of Pan-Beibu Gulf Economic Zone, the building of infrastructure, logistic, coastal
cities, exploitation of resource and so on between China and ASEAN have been greatly
improved, 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 billion
dollars, places the first in growth rate in China.
With the exploitation of Guangxi Beibu Gulf and the implementation of Early Harvest
Program, Guangxi, especially Guangxis Nanning, the capital of Guangxi Zhuang
Autonomous Region, Beihai, Fangcheng Port, Qinzhou, Yulin and Chongzuo receive the
good advantages of opening-up and exploitation. Noticeably, the exploitation of Guangxi
Beibu Gulf economic zone has been Chinese national strategy, so the exploiting
prospect of Guangxi Beibu Gulf is beautiful. However, there will be lots of issues to be
solved when exploiting the gulf and establishing the Free Trade Area. Here I will focus
on the environmental protection in the light of the exploitation and negative impact in
implementing the Early Harvest Program as a case to describe my opinion on how to
protect 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 Asian
Studies, Guangxi Academy of Social Sciences, Guangxi Zhuang Autonomous Region, China.
Email: huangyd99999@yahoo.com.cn
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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 Guangxis total land area. Guangxi is rich in south-Asian
tropical fruit, vegetable, sugarcane and so on. The total cultivated area for grain crop is
56 million mu.
Guangxi belongs to the area of sub-tropical wet monsoon climate with ample heat
and rain quantity, and is therefore one of the provinces with the most superior condition
in water and heat, holding the title of Natural Greenhouse in winter. Guangxi possess
rich of famous, special and dominant subtropical fruit, such as litchi, longan, pomelo and
so forth. In 2006, the output of Guangxis fruit broke for the first time through 6 million
tons.


II. Basic Situation of Guangxis Carrying out EHP

EHP is an important part of China-ASEAN Free Trade Area. In the program, the tariff
of more and more agricultural or relative products are reduced in order to accelerate the
implementation of China-ASEAN cooperative framework agreement and make all sides
of China-ASEAN benefit from the free trade area. By far, six ASEAN countries and China
have carried out the program. Evidently, all relative countries or areas benefit greatly
from the EHP. But just like the relationship between investment and environmental
pollution, while EHP benefits China, especially Guangxi, it also impacts badly on some
agricultural industries here. So its necessary for Guangxi, like other areas of China to
take 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 in
structure of agricultural industry, comparing with the agricultural product exported from
ASEAN, Guangxis agriculture, especially the fruit and vegetable industry faces not only
the developing opportunity, but also great challenge.

1. The Primary Result of Guangxis Carrying out EHP

Under EHP from January to July of 2006, Guangxis gross import-export quantity
was 101.35 million Yuan with the growth rate of 28.6%. From January to July of 2007,
with the ASEANs certificate of origin, Guangxis import commodity from ASEAN shared
0.12 billion Yuan of tariff preference, and for the export goods, shared the corresponding
preference with Chinese certificate of origin.
On the other side, the export quantity and value of agricultural product from Guangxi
to ASEAN were respectively increased from 210,000 tons, 50.90 million dollars in 2002
to 383,000 tons, 90.844 million dollars in 2006, the annual average growth rate were
respectively 16.2% and 15.6%. In addition, Guangxi got a great improvement in
exploiting the markets of Malaysia, Thailand and Singapore, and the export value was
increased from 880,000 Yuan in 2002 to 1.66 million Yuan in 2006.
Noticeably, the export achieved more business opportunities, and the enthusiasm of
the enterprises runs continually up. The products in EHP are mainly agricultural and
sideline 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 the
confidence of Guangxi export enterprises.

2. Challenges from EHP

There are five challenges from EHP, which are: The Export Increased Rapidly:
ASEAN Has Been Guangxis Base of Foreign Fruit; The Protective Action of Exceptional
Inventory Affects Guangxis Fruit and Vegetable in ASEANs Markets; The Private
Enterprises Worked Well While State-owned Enterprises Got Worse in Import and
Export; Guangxis Consumers Got More Benefit, Some Varieties of Tropical Fruit Were
Shocked and Low Quality Made the Advantage of Guangxis Fruit.


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

It is evident that the change of import-export agricultural product affected Guangxi
peasants average income, but only a little, and at the same time the growth of export
affected 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 unanimous
with the export growth of agricultural product. That was, with the increment of agri-
product export, Guangxi peasants average net income would also increase, while the
change rate of which is far higher than that of peasants average net income. It showed
that 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 in
agricultural product, peasants income will decline, but peasants income will not decline
unless 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 Vietnam
is mainly temperate fruit, vegetable and grain, Most of these fruit are rare, or hard to
plant in ASEAN nations. With the further economic integration between China and
ASEAN, great improvement of Vietnams living standard and the strengthening of
Vietnams transit ability, the temperate fruit and vegetable exported from Guangxi to
Vietnam will increase, but because the exported agri-product from China is protected by
the Exceptional Inventory of some ASEAN nations, it is estimated that the growth rate of
their import will be lower than that of Chinas. At the same time, some evidences show
that Thailands agricultural product imported from Guangxis port is increasing rapidly, it
is estimated that with the improvement of Vietnams traffic situation and further
integration of ASEANs economy, Thailands import agri-product from Guangxi through
Vietnam will increase. Generally, the agri-product exported from Guangxi to ASEAN will
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continue to increase, but its also possible that the export quantity of some varieties will
decline.

2. Import Trend

Both Guangdong and Guangxi are provinces that import ASEANs 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 Guangdongs import fruit
from ASEAN in 2005. Besides, As the main consuming province in China that import
ASEANs fruit, most of Guangdongs importing fruit was consumed locally. Thailand is
Guangdongs largest fruit resource. Guangxis import fruit from ASEAN is mainly
watermelon, longan, banana and so on, Vietnam has always been Guangxis largest
fruit resource. Guangxis import fruit and vegetable is not only consumed in Guangxi, but
all over the country. Because of special geography that borders with ASEAN nations
both on land and sea, it is convenient for Guangxi to import ASEANs vegetable and fruit
and sell to other provinces and regions of China. Guangxi can also be the largest
distributing center for ASEANs fruit and vegetable, so Guangxis import quantity of fruit
from ASEAN will possibly keep increasing.

3. Impact of Increasing Export on Peasants Income

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

4. The Impact of Import on Peasants Production and Income

At present, the quantity of domestic mango can not satisfy the broad domestic
market. Furthermore, the maturing season of domestic mango is different from that of
ASEANs. In recent years, lots of Tianyangs 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 end
of 2005, 106,000 mu of longan area and 9,000 mu of litchi area in Chongzuo city, the
largest longan city in Guangxi were reduced. There are lots of reasons why Chongzuo
city cut so much longan and litchi tree. In fact, the most important is that in the last years
Guangxi have planted plenty of longan and litchi trees, making the structure of Guangxis
fruit out of balance, the EHPs being carried out is only one of the reasons.

6. Countermeasures that the Government Took

Aiming at restraining the impact of EHP on Guangxis agricultural industry, all
levels of Guangxis government took some countermeasures to reduce the negative
effect from EHP: Leading Peasants to Exploit Actively the Domestic Markets;
Establishing Guangxis Brand of Agricultural Product; Developing Quality Vegetable and
Fruit Greatly; Strengthening the Educative Training and Technology Model and
Propagating to Peasants.


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V. Constructive Suggestion

At present, all levels in Guangxi have different views to the impact of EHP on
Guangxis agricultural product. Generally, the government has overestimated the shock
of EHP to Guangxis agricultural product, while the peasants have underestimated the
shock. We think that there indeed exist the impact of EHP on Guangxis agricultural
industry, but not as badly as what we expected. We consider that EHP offer Guangxis
agricultural product both opportunities and challenges, the shock to Guangxis agri-
industry is within what Guangxi can bear, but so long as we take suitable and active
measure, 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
ASEAN
2. Trying to Develop by Quality and Brand, Promote the Competition of the Product
3. Establishing the Collective and Distributive Center of ASEANs Fruit, Develop Greatly
the Further Processing of Fruit and Vegetable
4. Strengthening the Propagating and Leading, Using Fully the Preferential Tax
Regulation.
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 the
import-export custom, establish the system of joint conference, push actively and firmly
the information of custom, communication and business, simplify the custom procedure
and promote the custom efficiency.



Making Beibu (Tonkin) Gulfs 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, and
the environment is crying for help. The dying nature and polluted environment can no
longer bear the weight. It is urgent to save nature and the environment. The Guangxi
Beibu-Gulf economic zone is an important part of the world, especially the ocean and
coastal area. After the preceding section looking at the position of Guangxi in the context
of CAFTA, this paper moves on to its main focus: the case of Beibu (Tonkin) Gulf in the
nexus of regional integration and environmental protection in the context of CAFTA and
Pan-Beibu Gulf Cooperation.
Considering the lesson learnt from the pollution of Chinas Bohai Bay, while
opening and exploiting the natural resource of the Beibu-Gulf economic zone, the
oceans maiden bay, the protection of nature and environment should be the most
important issue to be considered.
The so-called natural resource refers to the natural factors that relate to human
social development and can be used to produce usual value and influence on the
productivity 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. Natural
resource is the material foundation of human survival and development as well as the
spring of social material welfare. It is one of the most important basis for sustainable
development, 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 of
the Guangxi Beibu-Gulf Economic Zone, Beibu Gulf, which had been the starting port of
Silk Road 2000 years ago and has been in silence for the past 1000 years, receives
another spring of opening and exploitation. However, when opening and exploiting, the
South China Sea which contains parts of Guangxi, Guangdong and Hainan of China
as 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 problem
should be a project for the correlative governments in Beibu Gulf.


I. Its 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 of
the China-ASEAN One Pole Two Wings statute, the implementation of the China-
Vietnam Two Corridors One Circle, the great exploitation to the west, and the
economic radiation of east and south of China, especially when the exploitation of the
Guangxi 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 receives
another exploiting spring.
The Beibu-Gulf economic zone is located at the hinge of Chinese Southern
Economic Zone, Southwest Economic Zone and ASEAN Economic Zone. It is the only
coastal area in Chinese exploiting area, and also the area that borders with ASEAN
nations both on land and sea. The strength of its position is obvious, and its strategic
status is remarkable. The resources in Beibu-Gulf, which include land, ground,
freshwater, ocean, agriculture, forest, tourism and so on is very rich with a large
environmental capacity, good eco-system, high carrier for population, low exploiting
density and great developing potentiality. It is an important region of the Chinese coastal
area with new plan and structure for modern harbor groups, industrial groups and city
groups of high quality
Since the Chinese reform and opening-up, especially since Chinese strategy of
exploiting the west was implemented, the development of economy and society of
Beibu-Gulf economic zone has gained great achievement and entered into the best
developing period in history. The economic strength gets more remarkable, the rate of
economy aggregate of Guangxi province grows increasingly, the building of
infrastructure makes a significant progress, the throughput of coastal ports is over 500
million duns, the transporting situation has gradually been improved, the role of
southwest sea corridor has been well played, special and competitive industries develop
rapidly, a scale of large national projects has been built or will be built, the opening level
is continuously improved, the economic cooperation with other civil areas is being
deepened, 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 has
deepened China-ASEAN cooperation, and laid the foundation for Beibu Gulf to play its
role of cooperative frontier and bridge-tower toward ASEAN nations.
China pays great attention to the development of Beibu-Gulf coastal area, taking
clearly Beibu-Gulf economic area as the emphasis area of exploiting the west, opening
and 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 the
developing situation gets ready and the time is mature.
Accelerating the opening-up and exploitation of Beibu-Gulf relates not only with
Guangxis self-development, but also the whole national development, so its strategic
significance is remarkable. The opening-up and exploitation of Beibu-Gulf economic
zone is propitious to accelerate wholly Guangxis economy and society, promote from a
whole the developing level of national area and economy, consolidate the national unity
and safeguard the frontier steady, carry out deeply the strategy of western exploitation,
strengthen the function of southwest marine corridor, accelerate the opening to the
outside world and economic development of southwest area, forming the strategic
highland of bringing along and upstanding the western exploitation; perfect the economic
overall arrangement of Chinese coastal and frontier area, make the development in
middle, east and west area more harmonious, connect more tightly with each other and
pour new strong power into the developing strategy of national economic society, and
quicken the establishment of China-ASEAN Free Trade Area, deepening the strategic
companionship between China and ASEAN toward property and peace.
Economic globalization and regional economic integration is developing rapidly. In
Beibu 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 being
quickened, China-ASEAN expos being held in Nanning, Guangxi, forever, the
development of GMS, the building of China-Vietnam Two Corridors One Circle and so
on are Beibu-Gulfs multi-opportunities. All above brings Beibu Gulf which is endowed by
nature in location an unprecedented developing opportunity, building for it a good
developing environment.


II. The Beibu-Gulf Eco-system at Present

Lots of little waves gets together on the seasand, dolphins are playing with the flying
sea-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, which
is 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 located
in the central part of Beibu-Gulf economic circle. It is the most convenient marine
corridor in southwest part of China and also the most important bridge and strategic
hinge to accelerate the whole cooperation between China and ASEAN. There are rich
resources 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. According
to the testing material, during the tenth five-year period, the Beibu-Gulf polluting
resource and polluting material is being reduced 46 per cent annually, the sediment in all
area 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 of
which 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 is
one of the areas with more wildlife. The national rare animals that are specially protected
are 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 mangrove
in the country. There is altogether 8375 hectares of mangrove area here and it covers 38
per 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 Zhanjiang
city in Guangdong province and Hainan province, the west of which is Vietnam. By far, it
is Chinas cleanest blue bay, blue sea, blue sky. Clear air is Beibu-Gulfs most valuable
resource 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 one
with the fame of Green City, Beihai Silver Seashore, the one with the fame of Chinese
First Seashore as well as Qinzhous Sanniang Bay, Fangcheng Citys Jing interest place,
Shangsis national wooden park, Miliion Mountains and so on.
But the Beibu Gulf which has been in silence for long faces the challenges of
environmental destruction when receiving the opportunities for economic growth. It has
been forecasted that Beibu Gulf will confront the following calamities unless
environmental problems are taken into consideration beforehand:
Pollution of acid rain. It is because people utilize more and more petroleum and
chemicals. The main harm it causes is that a large stretch of woods will be dead. There
are currently three areas suffering from acid rain: Europe, North America and the
southern area of Chinese Yangtze River.
Greenhouse effect (or global warming). The reason why the globe gets warm is that
countries produce more and more carbon dioxide, among which America is the first and
China is the second. The main disasters it leads to is that the ice in both the southern
and 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 of
the century, the global atmosphere will increase by 2 to 5 centigrade. And the sea plane
will 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 million
hectares annually, namely a speed of 10 hectares per minute. This is because the
vegetations of the plains are getting destroyed. In China, 500 hectares of land is
swallowed by the desert each day. In recent years, one after another sandstorm has
acted as severe warnings for this change.
The area of wood is being reduced. At present, 12 million hectares of forest is
destroyed every year in the world, most of which occurs in the developing countries. One
of the reasons for that is poverty, as people there have to change their valuable forest
resource for foreign exchange; the second reason for the deforestation is that they are
destroying the forest in order to open up new land. There being less land and more
population in China, the situation of destroying the forest for opening up new land gets
from bad to worse the coverage rate of the forest is now only 13 per cent, 120th in the
world.
Some species of creatures are dying out. Presently, the global species of creatures
are experiencing the sixth time of dying out. Having been hunted fiercely besides
suffering from the pollution of the environment, more and more species are confronting
the disaster of extinction.
Loss in land and water. Since people are destroying the forest in large scale, lots of
waste mountains and bare hills will lead to great floods when it rains, then the water and
land resource will lose idly. All this soil is brought into the rivers and lakes, filling up the
lakes and reservoirs and hence raising the riverbed, reducing the capacity of reservoirs
and 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. Having
been 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 first
class in air quality. The reason for the pollution lies in two aspects the first is that China
uses coal which gives out piles of polluting material, as main energy resource; the
second 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 from
inner or outer polluted air. Lots of developed countries gets their achievement at the
expense of developing countries; they are exporting their industries and their influences
to the developing countries.
In food, the global agricultural loss caused by plant diseases and pests is estimated
to be 14 per cent. The report says that the accelerating speed of planting area for crops
has reduced since 1987, but the usage density of land is increasing badly. The
unsustainable way of land usage causes land degeneration and becomes a threat I
terms of weather change and to existing species. It has threatened a third of the global
population by pollution, land erosion, water depletion, and increase in the amount of
salty soil and ecosphere breach. The population growth, over-consumption and trend
from consuming crop to meat continuously will increase the demand of food 2.5 times to
3.5 times of nowadays.
Globally, the situation that living species face is looking bleak. According to
estimations, 60 per cent of the function of the ecosystem has degenerated or is being
used in an unsustainable way. From 1987 to 2003, the number of existing vertebrates in
fresh 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

Guangxis aim of opening and exploiting Beibu Gulf is to turn this region into an
integrated economic zone with better infrastructure, stronger competitive port and ideal
industrial distribution, and finally into a city group with the most influence in the
southwest 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 peoples developing activities always pay the price
of environmental destruction. So how should Beibu Gulf, the later developing area
protect the environment to the utmost? The issue attracts a general attention from
domestic and foreign experts. In the seminar on Pan-Beibu-Gulf economic cooperation
held in July 2007 in Nanning, the capital of Guangxi, China, the environmental issues of
Beibu-Gulfs exploitation were specially attended to by the participants. Generally
speaking, there are blue skies, white clouds and fresh air everywhere in Guangxi; thus
we 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 course
of exploitation, we should not only introduce investment, but also protect the
environment and continuable development.
The Beibu Gulf which lies in the northwest of Chinas South Sea is not only Chinas
nearest corridor from the seaport of the southwest area of China, but also Chinas
cleanest area. But with the great promotion of exploiting Guangxi Beibu-Gulf Economic
Zone, a large scale of population pours into Beibu Gulf, causing the city scale here to
expand. So, Beibu Gulf faces more and more pressure in protecting its environment and
maintaining its environmental balance. Beihais 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 first
civil tourist developing upsurge, there were lots of buildings built and run by different
owners in the main viewpoint of this seashore within slightly more than one year, such as
nursing homes, hotels, rest houses and so on. It is proved by facts that buildings
became Silver Seashores environmental killers. By far the buildings here have been
removed and its true face is recovered.
The exploitation of Chinas Bohai bay offered us a reverse lesson. Bohai bay
possesses rich land and natural naval resources. It is the most developed economic
area in the north of China, covering an important position in Chinese economic
development. However, while people are highly enthusiastic to see Bohais economic
development, they are on the other hand worried about the worsening environmental
issues here. According to official estimations, it takes Bohai bay 16 years to exchange its
seawater once. The capacity of Bohai bay is very limited, and its self-cleaning ability is
very poor, but the polluting degree of the Liao River, Hai River and Yellow River that pour
into the Bohai bay are placed respectively as the first, second and fourth in the seven
water-systems of China. Lots of industries of fertilizer, papermaking, leather, chemical
fiber, aluminum industries and rubber industries lie along the bank; thus, the industrial
waste 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 of
national polluted water, and the polluted solid waste it receives every year is more than
0.7 million duns, covering 48 per cent of national polluted solid. Presently, Bohais
environmental situation is as follows: land-sourced pollutants increase continuously, the
pollution in the sea area is worsening, and the scope expanding; the disaster of red tide
occurs occasionally; the fishery resource is decaying; the marine eco-environment is
degenerating, and the species of marine creatures are suffering an obvious decline. If
decisive measures are not taken to prevent the pollution, Bohai will be a Dead Sea
within 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 of
the 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 economic
situation, but accelerated the environmental pollution and ecological breakage.
Especially during 1966-1976, the environmental pollution and ecological breakage
reached 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, reduction
of 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 bays developing way is a
mirror, 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 the
pain after the failure, and thus profit by the lessons of the past, by trying not to let Beibu
Gulf 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 developing
opportunities; secondly, good developing environment, in that there is support for the
strategic 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, the
infrastructure such as the road net, channel, electricity and water supply and drainage
has 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 overall
planning and coordination, as well as put the programmes into effect. To be of
11
importance, the eco-function plan should be strengthened and a monitored control
system of environmental protection should be established.



IV. Environmental Protection Must Be the Most Important and First Work in Beibu
Gulfs Opening Outward and Exploitation

For a long time, dismantling the old and building the new occurred constantly in
construction, and some natural resource and culture heritage confronts a severe
destruction. When planning and building cities and towns, how should people protect the
natural resources, embody the cultural specialties, protect the historic and cultural
heritage, maintain the local color, national color and traditional scene? Its an important
project placed before the Beibu Gulfs relevant countries and regions
Take mangrove protection as example. Mangrove is a kind of eco-beneficial forest and
is an important part of the coastal backbone forest shelter belt. Its an important eco-
building content to strengthen the protection of mangrove wetland, and thus an important
duty for forestry authorities, as it helps in maintaining the security of peoples lives,
properties in coastal area and social stability, accelerating the coastal economic and
social 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 Gulf
area is becoming an impressive hotspot for investmentsand fast developing economic
zone. Paying attention to and protecting Beibu Gulfs green sky and blue water has been
a 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 connecting
area of the China-ASEAN Free Trade Area, Pan-Beibu Gulf, Great Mekong sub-regional
area, Chinese Pan-Pearl Delta and six southwest provinces. The total area is 236,000
square kilometers, while the population here totals 49 million. Guangxi is rich in creature
resources with an important ecological position. It is also an important region in national
ecological construction. Guangxi belongs to areas of subtropical monsoon climate with
plenty of rain. As the rain and the heat shares the same season, there are rich species of
creature and lots of kinds of plant.
In recent years, in the light of the request of scientific development, Guangxi strives
to take wooden resource protection, strengthening the eco-construction as a way of
emphasis in promoting the economic development. Organizing six projects of forestry
ecosystems, such as the compensative projects of forest ecological benefit, projects of
returning land for farming to forestry, the project of wildlife and nature area, the pilot
project of dealing with stony desertification, the project of rural ecology and energy,
organizing the activities of Establishing Green Homes and New Rich Villages, promoting
insistently the afforestation, fulfilling carefully the project programmes of protecting
national 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 of
forest resources and the improvement of the ecological environment. At present, the
total 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 of
1.49 million hectares have been established, protecting effectively 80 per cent of
Guangxis eco-systems on land, 20 per cent of important wetland and 45 per cent of
12
mangrove, as well as preserving Guangxis best Proterozoic broadleaves. Since
Guangxis ecological situation is continuously improved, last year the gibbons with black
cap which is considered to be extinct in China for over 50 years and dying out in the
world were discovered in Guangxi province.
In Guangxi-Beibu Gulfs 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 a
regional ecological strategic aim to build Green Beibu Gulf, protect the blue sky and sea
and accelerate the concerted development of economy and society. The proposal of the
aim makes a higher claim for us to protect the natural resource and forestry. Guangxis
aim to develop Beibu Gulf in the future is to make the infrastructure more perfect, make
the ports here more competitive with more ideal industrial arrangement, as well as
attempt 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 natural
ecology 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 four
cities, namely Nanning, Beihai, Qinzhou and Fangcheng.
Fangcheng city is one of the twelve pivotal ports in 24 coastal cities, and is the
largest port in the west of China. In the course of quickening the construction of port and
coastal industries, Fangcheng city steps in the way of new industrialization, prohibiting
the programmes of high pollution, high consumption, high output with low input to start,
strengthening the environmental calculation, monitoring and protection, controlling
strictly the utilization of coastal area, protecting well the natural resources such as the
mangroves.
Tang Shibao, Mayor of Qinzhou City, says: Firstly, do well in the environmental
assessment during the revision of the Urban Master Plan of Qinzhou. A beard well
lathered is half shaved. Qinzhou City will start with three respects: from the source,
Emergency Mechanism and Long-term Mechanism, establish strictly a responsible
system of environmental protection, and strengthen environmental protection in ways
ranging from inviting investment to selecting investment. The sewage treatment design
of the million-ton refining project under construction has changed from secondary
discharge standard to first grade. Several billion yuan has been invested as a result.
Beihai was self-imposing when dividing the Environmental Function Zone. 78
square kilometers urban district was determined as first class air quality function zone.
Air quality, surface water quality and noise environment quality has been strictly
controlled. 7000 million yuan has recently been invested in transformation, relocation,
closing and governance of more than 170 traditional enterprises and contaminative
factories, such as papermaking, printing and dyeing, starch, ceramic and so on. More
than 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 City
was mostly first class clean water, among which is the famous Silver Seashore where
excellent water was provided 81.9 per cent of a year. Mayor of Beihai city Wen Kahua
says with confidence: Beihai's object is to be the most suitable-to -live "Chinese Coastal
Back Yard Garden", the central city of Beibu bay's regional internationalization. In order
to protect the regional environment, an offshore area functional zone, marine functional
zone and Beihai Action Plan have been made, basic works such as environmental
Capacity calculation have been accomplished, and coastal industrial zone environmental
impact assessment has been organized and developed. Usage of Guangxi Marine Area
13
was promulgated and efforts have been made to keep good regional environmental
quality.



V. Future Opening and Development Measures

According to the data concerned, diseases caused by environmental factors
account for 25 per cent of all kinds of diseases all around the world. There are about 200
million people who die of indoor or outdoor air pollution every year. In developing
countries, there are almost 300 million people who died of diseases related to water, and
most of the victims are 5 years old. Developed countries acquire achievements in
pollution treatment while damaging developing countries' interests. Industrial production
and its effects have been transferred to developing countries.
What a group of astonishing numbers! Never shall it be neglected under the new
situation of Beibu bay construction!
Beibu bay is among the cleanest areas in China. It's actually a tranquil and isolated
bay, 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 all
industries, absorbing capital to solve the key problem of fund shortage, and encounter
environmental problems:
Coordinate efforts from all sides. Regional characteristics of Beibu bays
environmental problems are more obvious compared to economic problems. That's
because regional eco-chains are connected, and the dependent degree of ecological
environment 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 therefore
strngthened, establishing Beibu Gulf Rim Economic Development and Environmental
Protection committee, which released the announcement of protecting Beibu Gulfs
regional 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 course
of introducing investment, we cannot lower our threshold, we should consider the
environmental cost even while thinking of its economic benefit. Meanwhile, when putting
forward the policy of lower threshold, we should keep enough place for future
development, not loosening environmental needs only for political achievement. If we
can not check on the pass well, the new projects will be tomorrows polluting ones, so we
should 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 and
damage.
Build up the idea of a Beibu Gulf brand of resource and environment. In order to
protect the brand and realize continuable development, we should pay high attention to
environmental protection and take precautions. When opening and developing, take
some corresponding measures; under the direction of scientific development, try to
make nature harmonize with human; and, last but not least, do not exchange the
sacrificed eco-environment with temporary prosperity. Try to do as follows: development
is important, but environmental protection comes first; we need not only silver and
14
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 for
public environment, strengthen the cooperation of environmental monitors in respective
regional cities; Timely, accurately and perfectly grasp the water situation, quantity of air
pollution as well as its changing trends; realize the regional information shares and
exchange, providing with scientific strategic foundations for the regional water and air
pollution.
Intensify the calculation of the environmental effect in energy restructure. Establish
the general index systems of regional resource and environmental calculation; establish
the research funds for the environment and resources, strengthen the research work and
industrialize structure of energy techniques, clean resources, utilize renewable resource
and so on. From the angle of continuable development, we should introduce more new
projects by lowering the energy consumption in cleaning producing, and reducing the
pollution discharge, thus saving resources and emptying more environmental space.
From the angle of global marine resources, we should pay attention to the following
aspects 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 foundation
that 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 the
strategy of developing reasonably to make Beibu Gulf a base of developing continuably
the ocean resource. Beibu Gulfs mineral resources includes oil, gas, gas hydrate, placer
and so on. Its developing potential is enormous. All levels of government in Beibu Gulf
will 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 fields
so as to increase the ocean gas output. Pay attention to the protection of the marine life
resources that are declining, and reduce the maritime fishing to zero or even to a
negative growth so as to recover the resource of main kinds of fishes and important
fishing 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 and
optimizing farming ways.
Utilize variably the ocean resources abroad. According to the relevant regulation of
the United Nations Convention on the Law of the Sea, the ocean resources of lots of
global coastal nations can be developed cooperatively with foreign countries. According
to Chinese national conditions and peculiarities of ocean resource, from the strategic
angle, we should not only tap the potential of ocean resources, but go out of the country
and utilize variably foreign resources. Make use of Beibu Gulfs political and geopolitical
strength by trying to cooperate with coastal neighbouring countries and nations with
better gas conditions and resources, as well as exploring and developing its maritime
gas resources and optimizing the distribution of resources.
Develop high technology and promote the utilization of ocean resource. The
development of ocean resources should be supported by marine technology, with the
aim of promoting the development of resources and enhancing the contribution rate. We
will develop the exploration technology of ocean resource to find new developable
resources; develop the technology of utilizing the ocean resource to get a high effect
with low cost; develop the ocean resource of low density and grade, high developing
difficulty and high cost; develop the fine processing of marine resources; develop and
utilize the marine functional food, marine medicine product, fine chemical product and so
on, promote the rate of second utilization and junk recycle; develop the protection of
15
marine environment and technological system for eco-restoration, including the
behaviour and influence of pollutants, the biological effect of pollutants and monitor,
forecast, control and manage technology of partial ecological change so that we can be
prepare 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 greatly
coastal development. The continuable utilization of ocean resource is decided together
by marine environment, marine resource, marine development as well as the
development of coastal economy and society. The development of ocean resource steps
in the way of utilizing resource and developing industries continuously, developing
ecology with high quality, increases continuously the developable resource (but the
developing scale must be limited in the bearing capacity of marine resource and
environment).
Participate actively in the scientific research of global ocean and protection of ocean
resource. Participate actively in all kinds of ocean affairs of the UN system, contributing
to 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 biological
resource, international cooperation on the protective field of ocean ecology, as well as
international cooperation on the exploration and exploitation, environmental protection of
international seabed area, making a favourable environment and condition for China to
utilize the global ocean resource.
Work out and perfect the developing programme and the protection of ocean
resources. The exploration and exploitation of ocean resources need the macro plan and
guidance, as well as need to establish the layout system of resource. Lay out a
necessary 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 form
a programme system of nations, provinces, cities (counties). Straighten out the relations
of different kinds of exploiting programmes for ocean resource, relations between
resource exploitation and environmental protection, make sure the reasonable
exploitation of ocean source and its effective protection.
Establish and perfect the management system of ocean resources. Management of
ocean resources is a piece of system engineering. Strengthen the management of
utilizing sea territory and ocean resource, enforcing the law of exploiting management
and ocean resource utilization, and ensuring to exploit and protect the ocean resource
according to law.













16
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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 200
articles in the papers or journals. At present he is working on a project entitled A
Research on the Role that Overseas Chinese Business Plays in Guangxis Beibu Gulf
Construction. This chapter is a part of his project entitled How to Protect the Beibu
Gulfs Environment.



17

ICS Working Paper Series

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2005-3 ZHAO Wenjie and Emile Kok-Kheng YEOH, Direct Investment from China and
the Transfer of Technology: A Malaysian Case Study, September 2005.

2005-4 Emile Kok-Kheng YEOH and ZHAO Wenjie, China-Malaysia Economic
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2005-5 ZHANG Jijiao, Social Network Used in Seeking Employment in Urban Areas: A
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2006-3 Mario Arturo RUIZ ESTRADA, Domestic General Development of Eastern and
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2006-5 Samuel C.Y. KU, Chinas Changing Political Economy with Malaysia: A Regional
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2006-6 LI Yiping, Sino-Malaysian Relationship in the Post-Cold War Period, July 2006.

2006-7 SHEN Hongfang, Impacts of China's WTO Entry on the Philippine Economy,
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2006-8 HOU Kok Chung, Malaysian Chinese and Cross-Strait Relations, July 2006.

2006-9 DING Rujun and Isa MA Ziliang, China as a Market Economy: An Evaluation,
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2006-10 ZHUANG Guotu, Southeast Asian Research in China: A Historical Review,
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2006-11 LIN Mei, Indonesian Labor Migrants in Malaysia: A Study from China, August
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18
2006-12 ZHAO Hong, China's Perspective on India's Changing Relations with ASEAN,
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2006-13 LIM Khay Thiong and WANG Hong Zen,
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2006-14 LI Yi, Analysis of Recent Sino-Malaysian Trade Relations, August 2006.


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2007-4 Emile Kok-Kheng YEOH and Shuat-Mei OOI, China, Malaysia and ACFTA: FDI,
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2007-7 Emile Kok-Kheng YEOH, Chinas de Facto Fiscal Federalism: Challenges and
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2007-8 KAMARUDING Abdulsomad, China and Scandinavia: Economic Relations, May
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2007-11 Isa MA Ziliang, Are There Subcultures in Chinese Culture?, November 2007.

2007-12 HOU Kok Chung, () [Malaysian
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China, March 2008.


19


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Needs?, June 2008.

2008-14 Evelyn DEVADASON, China-India Trade Relations: New Opportunities for
Cooperation, June 2008.

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Chinese Businessmens Investment in China, November 2008.



20


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2009-3 SHI Xueqin, China-ASEAN Economic Engagement: Building Mutual Confidence,
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Lionel Wei-Li LIONG,
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21
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22
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