Strategem – NTU Sino-Singapore Dialogue

Building a Resilient ASEAN-China Economic Community: Tapping onto a Cooperation Framework of Technology Commercialisation

For many years, Asean and China have been each other's biggest commercial partners, and their combined trade is expected to rise at a compound annual growth rate (CAGR) of 6.6%. Businesses are anticipated to keep expanding their manufacturing capabilities in the face of growing protectionism and heightened trade tensions. Asean is in a strong position to move up the global value chain and highlight its status as a major supply chain center following the conclusion of the Asean-China Free Trade Area (ACFTA) 3.0 discussions. ACFTA 3.0's full implementation will make it easier for Chinese businesses to enter Asean markets, promote greater interoperability, and save operating expenses, all of which will contribute to the development of a more resilient and strong supply chain throughout these countries.

The next phase of ASEAN China Economic Cooperation must be driven by strategic technological collaboration, sustainable growth and human capital development. To fully realize the boundless potential of the relationship between China and ASEAN, both countries should embrace and support in specific areas, particularly integration of Artificial Intelligence into regional supply chains, ensuring that ASEAN remains at the forefront of digital economy to continue exploring new areas of cooperation and fortify the region's new cooperation framework of technology commercialisation. At the same time, expanding cooperation in renewable energy, green industries and sustainable infrastructure is vital in fostering long term resilience and environmental responsibility.

Given that Asean's foreign direct investment inflows are predicted to continue rising to previously unheard-of levels in the medium term, this could boost technological advancement in developing sectors like the digital and green economies, increase the value that its industries contribute, and lessen dependency on conventional labour-intensive industries. In recent years, industrial investment patterns have shifted from the insurance and financial sector to manufacturing and wholesale and retail trade, underscoring the growing emphasis on telecommunications, e-commerce, and the digital economy. China increases FDI into the bloc, focusing on EVs, semiconductors, and renewable energy, amid rising US-China trade tensions. This dialogue featuring industry leaders and academics will gather at this platform to discuss and deliberate to deepen integration of supply chains between Asean and China to drive economic growth and nurture the next generation of talent in emerging and high-tech industries.