China, which now enjoys the highest growth in Asia and is the world’s third largest economy, signed an investment agreement Saturday with the 10-member Association of Southeast Asian Nations (ASEAN) here, Thai Commerce Minister Pornthiva Nakasai said.

The agreement was signed during the 41st ASEAN Economic Ministers Meeting (AEM) held in Bangkok.

Hailing the agreement which followed six years of negotiations -- since 2003, AEM chair Pornthiva said that the move will protect Chinese and ASEAN investor interests, as well as increasing new capital inflows to offer sustainable profits is in line with a plan to establish an ASEAN Economic Community by the end of  2015.

Under the agreement, Chinese businesses will expand investment in agriculture and food industries in ASEAN and plan to extend loans amounting to US$15 billion for infrastructure development programmes, including construction of a railroad from southern China to Malaysia.

It is expected that the agreement would boost investment between ASEAN and China to $5 billion from the $3.6 billion now within the next three years.

Latest statistics showed that China now ranks fourth in terms of key goods imported from ASEAN while the grouping ranks third as principal importer of that country.

Chinese investment now ranks eighth in ASEAN and its cumulative investment since last year totaled about $6.1 billion, while ASEAN investment in that country were approximately $5.6 billion.

China and ASEAN signed a Framework Agreement of Comprehensive  Economic Cooperation in 2002, proposing an ASEAN-China free trade area to be realised by January 1 next year.