Chinese Companies Turn to ASEAN, 91 Percent Plan Regional Expansion

Dragon Media News Desk

A large majority of mainland Chinese companies plan to expand their business presence in member states of the Association of Southeast Asian Nations, according to a new survey by the Hong Kong Trade Development Council.

The survey found that 91 percent of participating Chinese companies intend to expand their business, production, supply-chain operations or other commercial activities in ASEAN markets.

More than 2,000 companies took part in the survey, which showed that Belt and Road partner economies remain a major priority for the international expansion of Chinese businesses. Ninety-four percent of respondents said they wanted to extend their presence in those markets.

Within ASEAN, Singapore, Vietnam, Thailand and Malaysia emerged as the most attractive destinations. Each of the four countries was selected by more than 40 percent of respondents as a potential market for expansion.

The survey suggests that Chinese companies are increasingly looking beyond simple goods exports and are placing greater emphasis on production bases, supply-chain development, research and development, local market access and regional business partnerships.

ASEAN’s economic growth, large consumer base, manufacturing capacity and geographic and commercial proximity to China have made the region an increasingly important destination for Chinese enterprises.

Hong Kong, meanwhile, continues to play a major role as a service platform supporting the global expansion of mainland Chinese companies.

According to the survey, 83 percent of respondents identified Hong Kong as their preferred location for obtaining professional services needed for overseas expansion.

Hong Kong’s strengths in international talent, marketing, accounting, financial services and supply-chain management were among the main factors cited by companies.

The findings also highlight Hong Kong’s continuing role as a financial and commercial gateway connecting mainland Chinese businesses with international markets.

The latest survey reflects the growing importance of ASEAN in China’s external business strategy. For Chinese companies, Southeast Asia is increasingly becoming not only an export market, but also a major centre for investment, manufacturing, supply-chain development and long-term regional expansion.