Economic and trade cooperation between China and the Association of Southeast Asian Nations (ASEAN) is accelerating, with trade and investment between the two soaring and collaborations in industrial and supply chains becoming increasingly close.
In the first 10 months of 2023, the total trade volume between China and ASEAN reached $797.63 billion, up 7.2% year on year, outperforming China’s overall foreign trade growth rate by 3.5 percentage points. This trade accounted for 15.7% of China’s total foreign trade, an increase of 0.5 percentage points compared to the same period in 2022.
China’s direct investment in ASEAN countries in 2022 reached $25.12 billion, a significant surge of 34.7% from the previous year. Notably, seven of the top 20 destinations for China’s foreign direct investment were ASEAN countries. From January to July 2023, China’s foreign direct investment in ASEAN stood at $12.96 billion, marking a year-on-year growth of 15.3%.
ASEAN countries have also been actively investing in China. From January to July 2023, their direct investment amounted to $7.3 billion, up 14.1% year on year. By July 2023, the cumulative bilateral investment between China and ASEAN countries surpassed $400 billion, with Chinese companies accumulating over $440 billion in contract projects within ASEAN nations.
Cooperation in industrial and supply chains has been strengthened. Under the ASEAN Plus Three Cooperation framework, parties adopted the “ASEAN Plus Three Leaders’ Statement on Strengthening the Connectivity of Regional Supply Chains” in 2023. Additionally, the Industrial Chain and Supply Chain Partnering Conference was successfully held.
China-ASEAN’s institutional “soft connectivity” continues to deepen with upgrades to their free trade agreement. In October 2023, negotiations for the China-ASEAN Free Trade Area 3.0 concluded with substantive results. For the first time, both sides reached high-level agreements on chapters related to the digital economy, green economy, and supply chains within their free trade agreements.
This breakthrough signifies that China-ASEAN economic and trade institutions have entered a new phase of high-standard and high-quality connectivity, providing vital support for regional economic integration. It also sets a model for establishing cooperation frameworks regionally and globally.
Remarkable progress has been made in “hard connectivity” through infrastructure advancements. China and ASEAN countries are working towards a multi-dimensional connectivity network. Land transport projects like the China-Laos Railway and the Jakarta-Bandung High-Speed Railway are operational, while the China-Vietnam Railway and China-Thailand Railway are under construction. Efforts in road and bridge construction are enhancing regional networks.
In maritime transport, China has opened over 150 shipping routes connecting ASEAN ports, covering all major ports in the region. Air connectivity has also improved, with direct flights between China and all 10 ASEAN countries, and annual passenger numbers exceeding 25 million.
Furthermore, China and ASEAN countries are developing new land-sea corridors, innovating land-sea multimodal transport models, and integrating sea transport with road and rail. They are also promoting the connection of these corridors with the China Railway Express, enhancing connectivity between ASEAN and European countries.
The strong development momentum in China-ASEAN economic and trade relations, along with both “soft” and “hard” connectivity, has consolidated the foundation of bilateral collaboration. This growing partnership is improving the well-being of people across the region and contributing to the building of a China-ASEAN community with a shared future.
Reference(s):
cgtn.com
