Trade between ASEAN and China surges despite the COVID-19 pandemic (Photo: Xinhua/VNA)Beijing (VNA) – Although the COVID-19pandemic has weighed heavily on the global economy, members of the Associationof Southeast Asian Nations (ASEAN) and China have seen economic exchanges heatup, including surging trade and investment inflows, thanks to deepenedbilateral economic ties.
ASEAN has become the largest trade partner of China, and drawn rocketingChinese capital inflows, China’s Global Times said in its article posted on November11.
According to the Mission of the People’s Republic of China to ASEAN, China'sdirect investment in ASEAN in the first three quarters reached 10.72 billionUSD, increasing 76.6 percent year-on-year. Investment from ASEAN into Chinaincreased by 6.6 percent year-on-year, led by Singapore, Thailand and Malaysia.
The article highlighted China and ASEAN have long seen strengthening economicties, and higher investment from China into ASEAN is in line with acceleratingbilateral trade. Growing trade has brought demand for localised production orbusiness operations, which in turn has boosted capital flows.
The two sides have great economic complementarities, and they have taken partin the ASEAN-China Free Trade Area for 10 years. As one of the most energeticfree trade zones in the world, it has further promising prospects. The XinhuaNews Agency reported that bilateral trade grew to 641.5 billion USD in 2019from 292.8 billion USD in 2010.
With the pandemic shattering industry chains, it is expectedto be more integration of Chinese industries and developing ASEAN markets.Although Chinese investment in ASEAN may not keep expanding as fast as 76percent annually, sustained growth is foreseen, as China has shown a commitmentto promote regional economic integration, and the two sides have made effortsto further enhance ties, including promotion of the Regional ComprehensiveEconomic Partnership (RCEP).
Under market principles, China and ASEAN are seeking moreefficient development. For instance, agricultural industries and cooperation onindustrial capacity are areas in which the two sides could cooperate.
As the markets of China and ASEAN reach a higher degree of integration, thiswill further promote the regional economic integration between East Asia andSoutheast Asia, the article said./.
VNA
