China-ASEAN Expo has acted as a powerful catalyst for boosting trade and economic ties between China and the member states of the Association of Southeast Asian Nations (ASEAN). According to China’s General Administration of Customs (GAC), bilateral trade between China and ASEAN countries has experienced a rapid annual growth rate of 11 percent over the past two decades. This growth trajectory, which surpasses China’s overall foreign trade growth rate by 3 percent, has significantly enhanced ASEAN’s role as China’s largest trading partner.
As the 21st China-ASEAN Expo prepares to open next week in Nanning, in South China’s Guangxi Zhuang Autonomous Region, officials and business leaders are reflecting on the substantial economic achievements realized over the years. This year’s expo, set to take place from September 24 to 28, will further solidify the economic integration between China and ASEAN, emphasizing deeper cooperation across industries, particularly in private enterprises, intermediate goods, and agricultural products.
The rapid expansion of trade relations between China and ASEAN members underscores the success of platforms like the China-ASEAN Expo. When the event first launched in 2004, ASEAN’s share of China’s total foreign trade was a modest 9.2 percent. By 2023, that figure had surged to 15.4 percent, cementing ASEAN’s position as China’s top trading partner.
During the first eight months of 2023 alone, trade between China and ASEAN reached 4.5 trillion yuan (approximately $638 billion), marking a year-on-year increase of 10 percent. This impressive growth accounted for 15.7 percent of China’s total foreign trade during the period, according to GAC data. The upward trajectory suggests that the longstanding partnership has not only matured but is poised for further expansion.
The China-ASEAN Expo has been instrumental in fostering this remarkable growth. Each year, the event brings together thousands of businesses, governmental organizations, and industry leaders from both sides, offering a platform for showcasing innovations, establishing partnerships, and strengthening trade relations. Over time, it has evolved into a key venue for facilitating high-level discussions on economic and technological cooperation between China and ASEAN nations.
Private Enterprises in Trade Growth
One of the key factors driving the exponential growth in China-ASEAN trade is the increasing role of private enterprises. Customs statistics from the first eight months of 2023 reveal that China’s private businesses were responsible for 2.8 trillion yuan worth of trade with ASEAN, reflecting a significant 13.3 percent year-on-year increase. This figure accounts for 62.2 percent of China’s total trade with ASEAN, up 1.8 percentage points from 2022.
This trend signifies the growing integration of smaller and medium-sized enterprises (SMEs) into regional supply chains. SMEs, especially in sectors such as manufacturing, technology, and services, are playing an increasingly pivotal role in maintaining the dynamism of China-ASEAN trade. By leveraging the collaborative framework provided by the China-ASEAN Expo, private enterprises can capitalize on emerging market opportunities, explore new partnerships, and contribute to sustainable economic growth across the region.
Additionally, the surge in cross-border e-commerce has facilitated trade between smaller firms in China and ASEAN countries. Digital platforms have made it easier for private enterprises to navigate foreign markets, source products, and reach consumers, resulting in increased efficiency and a reduction in trade barriers.
Intermediate Goods: The Backbone of Bilateral Trade
Trade in intermediate goods has emerged as another vital component of the China-ASEAN trade relationship. In the first eight months of 2023, trade in intermediate goods between China and ASEAN reached 2.84 trillion yuan, reflecting a year-on-year increase of 9.6 percent. These goods, which include raw materials and components used in the production of finished products, form the backbone of the region’s manufacturing and production supply chains.
China and ASEAN countries have deeply integrated supply chains that are essential for various industries such as electronics, machinery, textiles, and automotive manufacturing. ASEAN’s ability to provide China with key components, and vice versa, has enabled companies on both sides to improve efficiency, reduce production costs, and enhance competitiveness on the global stage.
The China-ASEAN Expo serves as a key venue for stakeholders in these industries to explore new business opportunities and identify ways to optimize their supply chains. As trade in intermediate goods continues to expand, it is expected to further drive industrial growth and economic development in both China and ASEAN countries.
Growing Trade in Agricultural Products
Agriculture remains another significant sector in China-ASEAN trade relations. The trade of agricultural products between the two regions has steadily increased, driven by rising demand for high-quality food products and improved trade agreements. From January to August 2023, China imported 161.34 billion yuan worth of agricultural products from ASEAN, highlighting the strong interdependence in the agricultural sector.
The Southeast Asian nations have long been a critical source of agricultural commodities for China, providing products such as rice, palm oil, fruits, and seafood. Meanwhile, China has been a major supplier of fertilizers, machinery, and technology that are crucial for ASEAN’s agricultural development. The mutual reliance in agriculture underscores the complementary nature of the trade relationship.
Efforts to streamline customs procedures, improve food safety standards, and enhance logistics networks have made it easier to trade agricultural products between China and ASEAN, benefiting farmers, food processors, and consumers alike. Moving forward, there are expectations that the China-ASEAN Expo will offer new opportunities for agricultural cooperation, particularly in areas such as food security, sustainable farming practices, and climate resilience.
ASEAN’s Rising Economic Influence
ASEAN’s growing prominence as China’s largest trading partner is emblematic of the broader economic shift taking place in Asia. Over the past two decades, the ten ASEAN countries—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—have witnessed rapid economic growth, transforming them into key players in the global economy.
ASEAN’s strategic geographical location, combined with its young workforce and robust industrial base, has attracted substantial foreign direct investment (FDI), particularly from China. According to data from the China-ASEAN Business Council, Chinese investments in ASEAN have continued to grow, with cumulative investments exceeding $250 billion by 2023. Sectors such as infrastructure, technology, manufacturing, and green energy have been the primary recipients of Chinese capital, reflecting the strong alignment of economic interests between the two regions.
The Regional Comprehensive Economic Partnership (RCEP), which took effect in January 2022, has further strengthened economic ties between China and ASEAN. As the world’s largest free trade agreement, RCEP covers nearly a third of the global economy and has eliminated tariffs on a wide range of goods, reduced trade barriers, and fostered greater cooperation in services and investment. This agreement has reinforced ASEAN’s role as a hub for global trade and investment, positioning the region for continued economic growth.
China-ASEAN Cooperation
As the 21st China-ASEAN Expo prepares to open, both sides are looking ahead to the future of their partnership. Key areas of focus include deepening cooperation in digital trade, sustainable development, and green energy. With climate change presenting new challenges for both regions, China and ASEAN are expected to explore opportunities for collaboration on clean energy technologies, carbon reduction strategies, and environmental protection initiatives.
Additionally, the rapid rise of digital technologies, including artificial intelligence, e-commerce, and 5G networks, presents a new frontier for China-ASEAN cooperation. As both regions invest in building their digital economies, there is significant potential for joint initiatives in smart cities, digital finance, and cross-border digital trade. These emerging sectors are likely to be central themes at the upcoming expo, with both sides exploring new ways to harness technology for mutual benefit.
Moreover, the Belt and Road Initiative (BRI) continues to serve as a key framework for promoting infrastructure development and connectivity across the region. Since its launch in 2013, the BRI has helped finance numerous infrastructure projects in ASEAN countries, including ports, railways, highways, and energy facilities. These investments have facilitated trade and economic growth, creating new opportunities for businesses in both China and ASEAN.
The China-ASEAN Expo has been instrumental in fostering stronger economic ties between China and ASEAN, driving significant growth in trade and investment over the past two decades. With bilateral trade growing at an average annual rate of 11 percent since 2004, the partnership between China and ASEAN continues to deepen, benefiting both regions economically and strategically.
As the 21st China-ASEAN Expo gets underway, the focus will be on further expanding this successful partnership. Through continued cooperation in areas such as private enterprise, intermediate goods, agriculture, and emerging technologies, China and ASEAN are well-positioned to build a more prosperous and sustainable future together. The steady progress of the China-ASEAN trade relationship serves as a testament to the strength of multilateral cooperation, offering valuable lessons for other regions seeking to enhance their economic ties in an increasingly interconnected world.
