With formal establishment of China - ASEAN Free Trade Area (CAFTA) in Jan. 2010, new impetus will be injected into bilateral trade between China and ASEAN countries. For China who is seeing rapid economic recovery, the benefits are invaluable, especially at a time when new energy industry is exploiting new position and an increasingly key role in Chinese economy.
With growing intention for cooperation between China and ASEAN, cassava-based fuel ethanol is regarded as a key development item. China’s key oil producers like COFCO, CNPC are planning construction of cassava planting bases in ASEAN, aiming to launch biofuel project on an immense scale in the near future.
As more than 90% products from ASEAN into China will be exempted from import tariffs with establishment of CAFTA,cassava as an important raw material for domestic fuel ethanol production will have cost advantage, thus to benefit China’s future ethanol production. Currently, China imports
large quantities of ethanol raw materials, mainly cassava,from ASEAN every year.
In addition to promoting free trade, CAFTA will promote China’s industrial structure upgrade thus helping it develop a green economy.