According to relevant reports released by the Foreign Economic and Policy Research Institute, the economic ties between China and Southeast Asia are very close, which are reflected in the following two aspects:

China's direct investment in Southeast Asia

After the global financial crisis, China's direct investment in the region has grown substantially. Since 2013, China's investment in Vietnam has been increasing year by year; Singapore is China's preferred country for direct investment in the region. Although China is not a major investor in the richer countries of the region, for countries like Vietnam, Cambodia, Malaysia, etc., Chinese investment is of great significance.

China's investment in Southeast Asia is mainly distributed in manufacturing, retail and finance. Compared with other major investors, China's investment in Southeast Asian manufacturing is not much, but China's investment in manufacturing in the region is still much higher than investment in Africa and Latin America. As labor costs rise and competition in the domestic market becomes increasingly fierce, Chinese manufacturing companies are moving or expanding to Southeast Asia. China's mergers and acquisitions in Southeast Asia are concentrated in three countries: Singapore, Malaysia and Indonesia, with most M&A transactions occurring in the power sector (35%), followed by manufacturing (16%) and real estate (13%).

China's infrastructure construction in Southeast Asia

Infrastructure construction is the best indicator of China's increased economic impact on Southeast Asia. The lack of infrastructure is a major obstacle to the sustainable growth of the region's economy, and China's infrastructure has provided an unprecedented new impetus to meet this challenge. China is implementing large-scale infrastructure projects under the “Belt and Road Initiative” initiative, including transportation, energy infrastructure construction and the development of regional special economic zones.

The prospects for China-Southeast Asia relations will depend on its investment in manufacturing. China's private sector investment in manufacturing in the region will have a major impact on the development of Southeast Asia. At the same time, China's state-owned enterprises are attracting global attention through huge infrastructure projects. China used to be a processing center in the global value chain, and has gradually transformed into an intermediate supplier and is building a domestic production chain dominated by large companies.

In recent years, the all-round exchanges and cooperation between China and South Asia and Southeast Asia have been continuously enriched and expanded. In particular, the “One Belt, One Road” initiative has received positive response and support, and has achieved in terms of policy communication, facility connectivity, trade smoothness, capital finance, and people's hearts. Phased results. The deepening exchanges and cooperation also bring more economic opportunities to China and Southeast Asian countries in South Asia, and it is expected to maintain rapid economic development in the region through further opening up and cooperation.