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October 25, 2009 (LPAC)—Coming just days after the historic agreement between China and Russia, in which China will invest in high-speed rail, port development, and other infrastructure development in Russia, China announced on Saturday at the ASEAN+3 (Association of Southeast Asian Nations, plus China, Japan, and South Korea) meeting in Thailand that it is making $25 billion available for infrastructure development in the ten ASEAN countries. Of this, $10 billion was announced last April, in the form of a China-ASEAN Fund on Investment Cooperation, while an additional $15 billion is now being offered as credits to ASEAN nations, with an additional $40 million in aid to the poorest ASEAN countries.

The ASEAN nations have repeatedly made clear that the increasing aid and loans from China are the most welcome form of foreign support, as they come without the conditions on their economic and political policies which come with support from the West, undermining their sovereignty.

Premier Wen Jiabao issued a proposal for China-ASEAN cooperation, including, in addition to the infrastructure assistance, the lowering of tariffs on interregional trade, Chinese assistance in increasing the productivity of grain production, and environmental cooperation.

The ASEAN+3 will also expand to $120 billion the pool of currency reserves first established as the Chiang Mai Initiative in 2000 to counter currency speculation and provide aid during natural disasters. China also pledged 300,000 tons of rice towards the planned ASEAN+3 Emergency Rice Reserve.

Although the Asian Development Bank (ADB) released a study revealing a state of denial regarding the global financial collapse, claiming that there will be a V-shaped world recovery "with developing Asia leading the way," China is not buying such dangerous euphoria. Wen Jiabao told the ASEAN+3 Summit that "Tackling the global financial crisis should remain the top priority for countries in the region at present."