China Strengthens Economic Ties with ASEAN

The Association of Southeast Asian Nations (ASEAN) holds strategic importance for China, providing opportunities for collaboration in commerce, investments, and infrastructure development. The region's combined GDP exceeds USD 3.6 trillion, with a projected growth of 4.2 per cent in 2023 and 4.6 per cent in 2024, according to the International Monetary Fund. China cemented its status as ASEAN’s largest trading partner in 2023, with bilateral trade reaching USD 911 billion, outpacing trade with both the European Union (USD 783 billion) and the United States (USD 664 billion). Notably, China’s top ASEAN trading partners are Vietnam (USD 229 billion), Malaysia (USD 190 billion), Indonesia (USD 139 billion), Thailand (USD 126 billion), and Singapore (USD 108 billion).

Indonesia, ASEAN’s largest economy by GDP, continues to strengthen its economic partnership with China. In 2023, bilateral trade between the two nations reached USD 139 billion. China also emerged as a key source of investment in Indonesia, contributing over USD 7.3 billion in that year. A significant highlight of their cooperation is the inauguration of Indonesia’s first high-speed railway in October 2023, a joint project between Chinese and Indonesian companies. The railway, covering 140 kilometers between Jakarta and Bandung, allows travel at speeds of up to 350 km/h, enhancing Indonesia’s logistical capacity and further cementing the economic ties between the two nations. In this context, economic cooperation seems to outweigh potential geopolitical tensions in the South China Sea.