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China’s divisive role in the East Asia Forum

The recently concluded East Asia Forum (EAF) has highlighted the contentious role of a growing China in regional affairs. For an event that was intended primarily to lay the foundation for a huge Free Trade Agreement (FTA), the EAF has been at least as notable for a profound, perhaps fatal, rift in the Association of Southeast Asian Nations (ASEAN).

The proposed East Asia Free Trade Area (FTA), including around a third of the world’s global economy, is intended to capitalise on this region’s current and projected economic strength. While there are many thorny details to be resolved, not least trade advantages flowing from China’s artificially low currency, there is a general sense that the FTA process will continue to be developed.

No oil for these troubled waters

A serious dispute has broken out between Australian oil company Woodside and the East Timorese government over the processing of gas from the Greater Sunrise field in the Timor Sea. The dispute looks set to lock up one of the richest gas fields in the region and cost Woodside hundreds of millions of dollars already spent on research and development.

At the heart of the dispute is East Timor’s claim for natural gas taken from the joint Australian-East Timorese field to be processed into LNG in East Timor. Woodside has rejected that option, saying it wants to process the gas on a floating platform in the Timor Sea. The East Timorese government has said, however, that its position is not negotiable and that without an agreement on refining in East Timor there will be no agreement to proceed with drilling.

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