Economic cooperation between China and the Association of Southeast Asian Nations (ASEAN) is accelerating at an unprecedented pace. Trade and investment between the two parties continue to grow steadily, with collaboration in industrial and supply chains becoming increasingly close.
In the first ten months of 2024, the total trade volume between China and ASEAN reached a staggering $797.63 billion, marking a 7.2% year-on-year increase. This growth rate is notably 3.5 percentage points higher than China\’s overall foreign trade growth rate. Trade between China and ASEAN now accounts for 15.7% of China\’s total foreign trade, a 0.5 percentage point increase compared to the same period in 2023.
Chinese direct investment in ASEAN countries has also seen substantial growth. In 2023, China\’s direct investment in ASEAN reached $25.12 billion, surging by 34.7% year on year. Notably, seven of the top 20 destinations for China\’s foreign direct investment were ASEAN countries.
From January to July 2024, China\’s total foreign direct investment in all industries in ASEAN stood at $12.96 billion, registering a year-on-year growth of 15.3%. ASEAN countries have reciprocated this enthusiasm, with direct investment into China amounting to $7.3 billion in the same period, a 14.1% increase year on year.
By July 2024, cumulative bilateral investment between China and ASEAN surpassed $400 billion, and Chinese companies had achieved over $440 billion in turnover from contracted projects in ASEAN countries.
Deepening Cooperation in Industrial and Supply Chains
The two parties have made significant strides in strengthening cooperation in industrial and supply chains. Under the ASEAN Plus Three Cooperation framework, the concerned parties adopted the “ASEAN Plus Three Leaders’ Statement on Strengthening the Connectivity of Regional Supply Chains” in 2024. Additionally, the Industrial Chain and Supply Chain Partnering Conference was successfully held, further cementing ties.
Advancements in “Soft Connectivity”
China and ASEAN’s institutional “soft connectivity” continues to deepen, particularly with the quality upgrading of their free trade agreement. In October 2024, negotiations for the China-ASEAN Free Trade Area 3.0 concluded with substantive results. For the first time, both sides reached the highest level of agreements within their respective free trade agreements on chapters related to connectivity in the digital economy, green economy, and supply chains.
This milestone signifies that China-ASEAN economic and trade institutions have entered a new phase of high-standard and high-quality connectivity, providing vital institutional assurance and support for regional economic integration. It also serves as a model for cooperation frameworks between other regions globally.
Infrastructure Connectivity: “Hard Connectivity” Gains Momentum
Remarkable progress has been made in the “hard connectivity” between China and ASEAN, with steady advancements in infrastructure connectivity. Both sides have strengthened top-level design and are working towards establishing a multi-dimensional connectivity network on all fronts.
In land transportation, the China-Laos Railway and the Jakarta-Bandung High-Speed Railway have been completed and are operational, while projects like the China-Vietnam Railway and the China-Thailand Railway are under construction. China is collaborating closely with Cambodia, Laos, Vietnam, and other ASEAN countries on road and bridge construction, contributing to more interconnected regional road networks.
In maritime transport, China has launched over 150 shipping routes connecting ASEAN ports, covering all major ports in the region. In air transport, direct air routes between China and all ten ASEAN countries are now available, with annual civil aviation passenger numbers exceeding 25 million.
Furthermore, China and ASEAN countries are actively building new land-sea corridors, creating innovative models for land-sea multimodal transport and integrating sea transport with other methods such as road and rail transportation. They are also promoting the connection of these new land-sea corridors with the China Railway Express, enhancing connectivity between ASEAN and European countries.
A Promising Future for China-ASEAN Relations
The accelerating economic and trade cooperation between China and ASEAN, along with both “soft and hard connectivity,” demonstrates strong development momentum. This increasingly close relationship has consolidated the political and economic foundation of bilateral collaboration, improved the well-being of people across the region, and contributed significantly to building a China-ASEAN community with a shared future.
Reference(s):
cgtn.com
