CHINESE Prime Minister Li Qiang called for deeper market integration with south-east Asia on Thursday during annual summit talks in the Laos capital of Vientiane. 

Meeting with the 10-member Association of Southeast Asian Nations, Mr Li said: “The global economy is still seeing a sluggish recovery, protectionism is rising and geopolitical turbulence has brought instability and uncertainty to our development. 

“Strengthening market co-ordination and synchronisation is an important direction for our further co-operation.”

China and Asean said they expect to conclude negotiations to upgrade their free trade pact next year. 

Officials said the expanded pact will cover supply chain connectivity, the digital economy and green economy. Since the two sides signed the pact covering a market of two billion people in 2010, Asean trade with China has leapt from the equivalent of £180 billion to £533bn last year.

China is Asean’s number one trading partner and its third-largest source of foreign investment.

Tensions, ramped up by US interventions, exist between China and Asean members Vietnam, the Philippines, Malaysia and Brunei, along with Taiwan, as they have overlapping claims in the South China sea. 

There have been some isolated clashes between Chinese and Philippine vessels in recent months. 

Philippines President Ferdinand Marcos Jnr, a firm ally of the US, made clear during Thursday’s talks that Asean-China co-operation cannot be separated from the sea dispute, according to an Asean official. 

The official said Mr Marcos wants to prioritise negotiations on a code of conduct to govern behaviour in the sea to ensure peace.

Mr Li responded by saying the South China Sea is “a shared home” and that China has an obligation to protect its sovereignty.

Russian Foreign Minister Sergey Lavrov and US Secretary of State Antony Blinken are also in Vientiane, as are dialogue partners from Australia, Canada, India and the United Nations.