Both Asean and China are working towards building a better community and sharing of inclusive growth and prosperity.
China and Asean stand at a pivotal moment.
With shifting trade policy, rising protectionism and nationalism, as well as geoeconomic fragmentation and strategic rivalries between great economic powers, both sides must work together and commit toward four time-tested principles to navigate global trade, conflict and security challenges, and bolster better economic cooperation and integration.
These are interconnected, aligned and inclusive multilateral systems, free and open trade, a rules-based international economic order, and people-to-people movement.
Today, Asean is the world’s fifth-largest economy with a gross domestic product (GDP) of US$3.5 trillion or 3.7% of the world’s total last year, behind only the United States (US$22.7 trillion or 23.5%), and China (US$18.5 trillion or 19.1%).
Last year, Asean-11 total trade amounted to US$3.81 trillion or 7.7% of the world’s total trade.
Meanwhile, the US$225bil in foreign direct investment (FDI) in Asean accounted for 14.9% of the world total, and 5% of global manufacturing value-added.
Intra-Asean trade has shown strong resilience, rebounding by 7.9% to US$823.1bil last year after a 10.7% decline to US$762.8bil in 2023, reflecting robust regional integration and economic recovery.
Intra-Asean trade accounted for an average share of 21.6% of Asean total trade between 2020 and last year (an average share of 23.5% from 2012 to 2019).
Asean and China are each other’s largest trading partners, with rapid growth in goods and services as well as investment. China has remained the largest trading partner of Asean for 16 consecutive years since 2009; and the region has also become China’s largest trading partner for the last five years since 2020.
From 2015 to 2024, trade between China and Asean had expanded by 41.6% a year, almost 23 times more than the US$42.9bil value in 2015, to US$981.8bil in 2024.
Both Asean and China are well-positioned to thrive in a multipolar world when aligned on strategic multi-alignment, economic cooperation and partnerships, setting the right investment and business priorities.
Both sides must strive to embark on another 30 golden years of trustful and prosperous relations and cooperation, creating a new level of strategic partnership.
Governments and businesses in this region can look forward to charting a new course defined by close collaboration and regional self-determination.
China and Asean must continue to forge deeper and better economic cooperation and integration for ensuring an inclusive community with a shared future.
Today, both Asean and China enjoy close high-level interactions, deepening strategic mutual trust, a variety of mechanisms for policy dialogue and cooperation covering government leaders, business chambers and associations, departments, and public and private institutions in nearly 50 fields.
Asean and China have reaffirmed their shared commitment to further advancing the Asean-China Comprehensive Strategic Partnership, which was established in 2021.
China reaffirmed its steadfast support for Asean Community-building efforts and Asean’s central role in regional affairs.
China also underscored Asean’s importance in China’s neighbourhood diplomacy. China and Asean have a deepening strategic economic partnership built on trade, investment, and regional integration, underscored by the upgraded China-Asean Free Trade Area.
The upgrade provides guidance on competition and consumer protection, the digital and green economies, supply-chain connectivity, and support for small businesses.
The “Asean Way” and China’s prioritising of neighbours are diplomatic strategies aimed at building stable and cooperative relations as well as maintaining harmony within the region.
A key pillar of this relationship is the Regional Comprehensive Economic Partnership, the world’s largest free-trade agreement, which further solidifies China-Asean economic integration.
China-Asean relations are a significant driver for peace, stability, and development in East Asia due to their strong economic partnership, strategic cooperation, and commitment to regional prosperity.
China will certainly be better off if Asean is stronger.
President Xi Jinping said: “China will continue to follow the principle of amity, sincerity, mutual benefit and inclusiveness, and work with other countries in the region to build an Asian homeland of peace, tranquillity, prosperity, beauty and friendly coexistence, to jointly write a new chapter in promoting the building of a community with a shared future for Asia and for humanity.”
Forging ahead, China and Asean can work together in the following priority areas.
First, leveraging strong China and Asean relations to deepen synergy in anchoring Asia for the making of a multipolar world through peaceful multilateralism.
The Asean Way, which prioritises non-interference, consensus, and a non-confrontational approach for addressing economic and security issues, together with China’s friendly neighbourhood diplomacy can be foundational for the making of a peaceful multipolar world.
Collective actions and efforts among the Global South, and members of Asean have seen the rise of disparate multilateral mechanisms such as BRICS, the Shanghai Cooperation Organisation, the African Union, the Gulf Cooperation Council and Asean.
The way forward is to broaden their partnerships and find new avenues of cooperation in reshaping trade patterns, diplomatic alliances and security frameworks for a multipolar world.
Second, both sides have to enhance and deepen strategic mutual trust and commit to mutually beneficial cooperation in ensuring the cooperation is genuine and sincere.
Asean and China are committed to exploring and creating more strategic and iconic cooperation projects based on the principle of mutual trust, mutual benefit, mutually agreement, and win-win results.
Open and sincere dialogue between China and Asean is necessary to address concerns about the influx of Chinese goods negatively impacting the region’s small and medium enterprises (SMEs).
It is proposed a taskforce be established to look into how China can collaborate with and assist Asean SMEs in reaping the benefits of China’s investment in Asean.
Third, Asean and China must collaborate to develop innovation-driven growth and industries, leveraging the strength and resources of members.
As most Asean countries are lacking talent and technological advancement, China can work together with Asean’s public and private sectors to invest in high technology such as semiconductors, artificial intelligence (AI), the green economy, smart agriculture, blue economy, and climate-change mitigation.
China can help Asean to develop the science, technology, engineering, and mathematics education, launch AI fellowship programmes, and expand youth exchange initiatives.
Fourth, strengthening regional supply chain resilience through enhanced cooperation and resource sharing.
Asean and China must deepen cooperation in developing the supply chain capabilities of domestic SMEs through digital transformation, harmonising trade rules, and improving access to finance and skills development.
Key strategies include promoting digital trade and standards, strengthening logistics infrastructure, and supporting SMEs with targeted training and financial assistance to enhance their competitiveness and integration into regional and global value chains.
Fifth, both sides must further facilitate two-way exchanges of people, continuously deepening cooperation on education, cultural tourism and sports, and strengthening mutual understanding and friendship between peoples, especially the younger generation.
In conclusion, from decoupling to multi-dimension connectivity, both Asean and China are working towards building a better community and sharing of inclusive growth and prosperity.
This entails a deepening strategic cooperation and partnerships and a collaborative developmental model that builds on mutual trust and benefits.
Lee Heng Guie is the executive director of the Socio-Economic Research Centre. The views expressed here are the writer’s own.
