China’s Economic Growth to Strengthen ASEAN Ties in 2025

China’s pursuit of steady economic growth in 2025 is expected to benefit not only its domestic economy but also the Association of Southeast Asian Nations (ASEAN), according to experts. Policies aimed at boosting domestic demand and stimulating consumption are anticipated to positively influence ASEAN economies through enhanced trade and investment ties.

Economic Linkages and Opportunities

Abdul Majid Ahmad Khan, president of the Malaysia-China Friendship Association and former Malaysian ambassador to China, remarked that measures to stimulate China’s economy in 2025 would likely increase its imports from ASEAN, driven by rising domestic demand for goods and services. He emphasized the interdependence of the two economies, noting that ASEAN would benefit as China’s consumption and service needs grow.

Majid’s comments follow the annual Central Economic Work Conference held in Beijing on December 11-12, where Chinese leaders outlined key economic priorities for 2025. These include reviving household consumption, fostering innovation, increasing capital flow, and enhancing investment efficiency. Majid expressed optimism, suggesting that successful efforts to boost Chinese domestic consumption would positively affect ASEAN economies.

Expanding Trade and Investment

Trade between China and ASEAN has more than doubled since 2010, with 2023 trade volumes reaching $911.7 billion. This achievement marked the fourth consecutive year of China and ASEAN being each other’s largest trading partners. Additionally, China’s investments in ASEAN grew by 44.6% in 2023, bringing total two-way investments to over $380 billion.

While some foreign observers have raised concerns about China’s slowing economic growth, Siah Hwee Ang, a professor of International Business and Strategy at Victoria University of Wellington, described it as a natural progression for a mature economy. China achieved 4.8% GDP growth during the first three quarters of 2024 and is targeting 5% annual growth. Ang noted that such growth remains robust, especially when compared to the 2-3% typical of larger, more developed economies.

Ang also pointed out that ASEAN’s projected average growth rate of 5.1% over the next decade would complement China’s growth trajectory, strengthening the trade partnership between the two regions.

High-Standard Opening-Up and Innovation

Henry Chan, a visiting distinguished senior fellow at the Cambodian Center for Regional Studies, highlighted China’s commitment to expanding high-standard opening-up, including overseas investments. Chan noted that China’s investments in ASEAN have surged in recent years and are on track to make China the region’s largest foreign investor. ASEAN, he said, also relies on China’s unique products, such as electric vehicles and solar panels.

China’s focus on developing new productive forces through technological innovation and building a modern industrial system, as outlined in the Central Economic Work Conference, is expected to create further opportunities for ASEAN. Chan emphasized that ASEAN has increasingly turned to China for high-technology goods, underscoring the region’s reliance on China as a key supplier.

Have you read?
The Top 100 Highest-paid CEOs in America.
Countries With Lowest Rate of Economic Growth in 5 Years.
Countries Most in Debt to China.
Most Attractive Cities for Global Talent.
Largest economies in the world by Share of Global GDP.