Biz dynamics with ASEAN set to flourish

China and the Association of Southeast Asian Nations will enhance their trade relationship, driven by closer supply chain connectivity and vast consumer market potential, as they work to consolidate their role as each other's largest trading partners, said market watchers and business leaders on Monday.

Although large-scale infrastructure projects have long been the hallmark of Chinese companies in Southeast Asia, the region is increasingly recognized as one of China's most vibrant trading partners as bilateral ties enter a new phase of growth, said Wan Zhe, a professor specializing in regional economic development at Beijing Normal University.

Li Guanghui, dean of academic affairs of the China-ASEAN School of Economics at Guangxi University in Nanning, Guangxi Zhuang autonomous region, said the future implementation of Version 3.0 China-ASEAN Free Trade Area, together with deeper exchanges under the Regional Comprehensive Economic Partnership and continued collaboration through the Belt and Road Initiative, is expected to support long-term trade growth.

China has maintained its position as ASEAN's largest trading partner for 16 consecutive years, while ASEAN has been China's largest trading partner for the past five years, said the Ministry of Commerce.

Bilateral trade rose 9.7 percent year-on-year to 4.93 trillion yuan ($692.42 billion) in the first eight months, accounting for 16.7 percent of China's total foreign trade, said the General Administration of Customs.

Such vibrant two-way trade has also created opportunities for Chinese manufacturers to deepen their presence in ASEAN markets, said Li Yong, a senior research fellow at the Beijing-based China Association of International Trade.

Li said that by leveraging regional demand and adapting to local preferences, a growing number of Chinese manufacturers are shifting from simply exporting products to offering tailored solutions and localized innovation.

For instance, Ningbo Weiyun Electronic Co, a hardware manufacturer based in Ningbo, Zhejiang province, has tailored its research and innovation to the practical needs of Southeast Asian consumers, tackling issues such as differing electrical plug standards across the region.

"This targeted approach has earned our products strong recognition and popularity in markets such as Malaysia and Thailand," said Chai Jianlu, Ningbo Weiyun's president. "For the next step, we will actively expand into the Philippines and Vietnam, seeking more diversified and sustainable growth opportunities."

According to data from Ningbo Customs, Ningbo Weiyun's exports to ASEAN reached nearly 42 million yuan between January and August, up 18.3 percent year-on-year.

Luxshare Intelligent Manufacture Technology (Changshu) Co, a Changshu, Jiangsu province-based electronic components manufacturer, saw its exports to ASEAN exceed 240 million yuan during the January-August period, up nearly 400 percent year-on-year, said Nanjing Customs.

"We have paid close attention to the rising consumer demand in Southeast Asian markets. Since the beginning of the year, with accessories for consumer products such as mobile phones, earphones and smartwatches entering large-scale mass production in the region, our exports to ASEAN countries, especially Vietnam, have grown rapidly," said Xiao Lu, the company's manager for Customs affairs.

Alongside the trade growth, improved regional connectivity projects are strengthening China-ASEAN economic ties. The China-Laos Railway, for example, handled over 3.43 million metric tons of imports and exports in the first seven months, with a trade value exceeding 15.4 billion yuan, up 6 percent and 41 percent on a yearly basis, respectively, said Kunming Customs. At present, the China-Laos Railway serves 19 countries, with the range of import and export goods expanding from over 500 in 2022 to more than 3,600 varieties now.