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As Hainan moves toward special Customs operations, it becomes a living lab for China's future-focused reforms. "(There are) a lot of things to cooperate between ASEAN, Indonesia and Hainan," said Djauhari Oratmangun, Indonesian ambassador to China, at a meeting on major trends of China's expanded opening-up.
From trade facilitation to institutional innovation, Hainan offered a window into how this strategic frontier reflects the country's broader reform ambitions.
As China's tropical island province of Hainan starts special Customs operations by the end of the year, its level of openness is expected to reach new highs and benefit more foreign partners, said senior officials.
In line with the highest international standards of openness, the liberalization and facilitation of trade and investment have been the focal points for Hainan Free Trade Port, said Wang Bin, a senior official of Hainan province.
"We are gradually implementing China's most favorable tax policies, centered around zero tariffs and a simplified tax system," Wang said, adding that the port boasts China's shortest negative list for foreign investment access, largest catalog of encouraged industries, and first negative list for cross-border trade in services.
Wang made the remarks during a meeting on major trends of China's expanded opening-up held by the Center for China and Globalization on Friday.
Wang added that Hainan FTP also has dedicated international internet data channels covering key areas to meet the data needs of most sectors. Once special Customs operations come into effect this year, the region will further increase the convenience and freedom of trade and investment across the board, he said.
According to the latest government data, the number of new business entities established since the construction of the Hainan FTP has exceeded the total of the past 30 years, with 158 countries and regions investing in Hainan.
"Hainan FTP opens huge opportunities for cooperation between China, Indonesia, and other ASEAN member states and RCEP participating partners," said Djauhari Oratmangun, Indonesian ambassador to China, at the gathering.
In order to advance comprehensive strategic partnerships with China, Indonesia and ASEAN are expected to further increase economic cooperation, in particular, trade, investment and tourism with the country, Oratmangun said.
Hainan also has the lowest tax burden of any place on the Chinese mainland.
The current general corporate income tax rate on the Chinese mainland is 25 percent, while in the Hainan FTP, it is 15 percent, said Li Yufei, deputy director of the FTP's working committee. "Hainan serves as the most open place on the Chinese mainland to foreign investment," Li said.
As a result, the number of newly established foreign-funded enterprises has grown by an average of 57 percent annually, and paid-in foreign capital has grown by an average of 36 percent, government data showed. Its economic openness rate also increased from 17.3 percent in 2018 to 35 percent in 2024.
In a bid to strengthen economic ties with global trade partners and explore mutually beneficial cooperation mechanisms, the Hainan FTP has inked Global Free Trade Zone (Port) Partnership Initiative with 38 free trade zones (ports) worldwide, and signed cooperation memoranda with over one-third of pilot free trade zones in China, Wang added.
Boasting an advantageous location, the Hainan FTP is just four hours by plane from 21 countries and regions in Asia, encompassing roughly 47 percent of the global population and 30 percent of the world's GDP.
"Its location is conducive for both international firms looking to break into the Chinese market and Chinese companies seeking to go global … better fostering economic globalization and promoting the building of a community with a shared future for mankind," Wang said.
lijiaying@chinadaily.com.cn
Yunnan province has sustained strong foreign trade growth thanks in large part to deepening cooperation with member states of the Association of Southeast Asian Nations, a dynamic that underscores the strength of China-ASEAN economic ties despite mounting global trade protectionism, said experts.
According to Kunming Customs, ASEAN has remained Yunnan's largest trading partner for 20 consecutive years. In 2024, trade between Yunnan and ASEAN reached 109.32 billion yuan ($15.1 billion) while in the first quarter of this year alone, bilateral trade totaled 23.96 billion yuan.
As China's gateway to South and Southeast Asia, Yunnan has seen increasingly close economic and trade cooperation with ASEAN in recent years. "The province's growing foreign trade potential continues to inject strong momentum into regional economic integration," said Kunming Customs.
Of the total trade volume, Yunnan imported 3.22 billion yuan's worth of agricultural products from ASEAN, up 26.5 percent year-on-year, and exports of agricultural goods reached 2.98 billion yuan, marking a 23.1 percent increase.
Notably, exports of fruits and nuts surged by 132.6 percent compared to the same period last year.
Fruits produced in Yunnan are highly complementary with those of ASEAN economies, and the establishment of a cross-border fruit corridor — bringing tropical fruits north and temperate fruits south — has enhanced the complementary trade advantages between China and ASEAN economies, fostering mutually beneficial cooperation, according to Kunming Customs.
"Yunnan enjoys geographic proximity and longstanding cultural ties with neighboring regions," said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
"Recent progress in infrastructure and logistics has laid a further solid foundation for Yunnan and ASEAN to deepen cooperation based on their respective strengths," Zhou added.
Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said that as China and ASEAN economies both prioritize manufacturing development, agreements covering the RCEP (Regional Comprehensive Economic Partnership) and the China-ASEAN Free Trade Area have strengthened industrial linkages. Improved logistics infrastructure between Yunnan and ASEAN economies has also helped remove traditional trade barriers and unlock new business opportunities.
Yunnan's collaboration with ASEAN offers a valuable model for broader China-ASEAN cooperation.
"Border and cross-border economic cooperation zones have played a key role in fostering industrial complementarity, strengthening supply and value chains, and enhancing regional economic resilience," said Bai.
Data from the General Administration of Customs reveal that in 2024, ASEAN remained China's largest trading partner, with total bilateral trade reaching 6.99 trillion yuan, up 9.0 percent year-on-year and accounting for 15.9 percent of China's total foreign trade.
Exports to ASEAN stood at 4.17 trillion yuan, a 13.4 percent increase, while imports from ASEAN totaled 2.82 trillion yuan, up 3.2 percent.
Commenting on the US tariffs, Zhou noted that their impact extends to neighboring countries, placing shared pressure across the region.
"However, enhanced cooperation among regional partners can help mitigate these effects, reduce overreliance on external markets and strengthen economic resilience within the region," he said.
Undoubtedly, the trade conflict has had a negative impact on many countries, said Wang Yuzhu, an academic director of the Greater Bay Area-ASEAN Research Center at Shenzhen University.
"Trade wars benefit no one and are bound to have negative economic consequences," he said.
Regardless of the global environment, regional collaboration remains the cornerstone of sustainable growth, and Wang believed that the cooperation between China and ASEAN should be seen as long-term.
As the first light of dawn bathes the shimmering shore of Hainan Free Trade Port, a vibrant tapestry of China's opening-up unfolds.
In Boao's gleaming hospital buildings, physicians administer cutting-edge therapies under special regulatory permits; in Lingshui's seaside course, international students enjoy leisure time with their Chinese counterparts; and at Haikou's maintenance base, zero-tariff policies power aircraft overhauls that span half the globe.
"China's openness is astonishing," said a patient from Greece.
Visiting the Boao Lecheng International Medical Tourism Pilot Zone for a second time to receive a newly approved glioma-targeting therapy, he said he's lucky to see the drug — which was launched in the United States in August — become available in Hainan by November.
Upon learning that a new drug is capable of replacing chemo-radiation and effectively delaying recurrence, he immediately contacted relatives in the US and Greece to buy the drug — only to find it prohibitively expensive in the former and not yet available in the latter.
To his great surprise, the treatment had already made its "Asia first use" at West China Medical Center, Sichuan University's Lecheng unit, in November.
At the heart of this quick access to foreign medicine is Lecheng's successful implementation of four "special permits" for medical practice, research, operation and international exchange, which are designed to fast-track breakthrough drugs and devices into the Chinese market.
"Lecheng has now achieved 'three-way synchronization', aligning its medical technology, equipment and pharmaceuticals with leading international standards," said Zhang Yanning, an official at the medical pilot zone's management bureau. "It has become a 'city of hope' for patients with rare diseases and complex conditions in search of new drugs, devices and therapies," Zhang said.
According to the management bureau's data, Lecheng has to date imported over 470 innovative medicines and devices not yet approved on the mainland, benefiting more than 110,000 patient visits, an annual increase of 134.2 percent over the past five years.
Partnerships now span over 180 pharmaceutical and med-tech companies from 20 countries, including leading players like Merck, Sonova, Gilead Sciences and Novartis.
Beyond cutting-edge care, Lecheng is also crafting a holistic "medical tourism" experience. Twenty bespoke packages cater to both domestic and international guests, blending health checkups, convalescence programs and leisure activities against the lush backdrop of Boao's tropical coastline.
Visitors from Southeast Asia, Central Asia, the Middle East and Europe are increasingly drawn to this fusion of healing and hospitality — an unfolding tableau of what a "community of shared health destiny" promises.
"This journey made me feel how close China is to Indonesia," said an Indonesian tourist on a medical visit to Lecheng. "The hospital felt more like a spa-like resort, with impeccable service and very reasonable prices," she said.
In 2024 alone, Lecheng welcomed 413,700 medical tourists, up 36.8 percent year-on-year, with international groups spending an average of over 12,000 yuan ($1,640) per person, according to the management bureau's data. Ancillary sectors such as health checkups, medical aesthetics and rehabilitation have likewise prospered, testifying to the zone's ripple effect on the local economy.
Not far down south on the island, the Lingshui Li'an international education innovation pilot zone is also dismantling walls — here, the ethos is "campus without fences, classrooms without barriers, research without borders".
"Compared to studying abroad, studying in Hainan allows us to 'enroll in one university and select courses from many'," said Li Ningrui, a communications engineering student at Glasgow College Hainan, established jointly by University of Electronic Science and Technology of China and University of Glasgow.
Li added that after graduation, he would be able to earn bachelor's degrees from both universities, which will offer him an edge in seeking higher educational experiences.
Since implementation of the regulations on Lingshui Li'an international education innovation pilot zone on Jan 1, eight Sino-foreign cooperative programs and 22 worldwide leading universities have taken root.
The regulations stipulate support for Sino-foreign joint educational ventures within the pilot zone, while permitting top-tier foreign universities and vocational schools to found institutions and allowing foreign enterprises to establish wholly foreign-owned schools.
"Foreign institutions can teach independently or partner with local universities, making 'study in Hainan equals study abroad' a reality," said Wang Yang, deputy director of the educational pilot zone's management bureau.
The document also encourages unlimited recruitment of international students and facilitates services for international students, foreign professionals and visiting scholars in the zone.
According to the latest data from the pilot zone's administrative authority, international students now account for over 10 percent of the total student population.
In a different facet of openness, an aircraft maintenance industrial base in Haikou is gaining traction among global customers in aviation services.
"Previously, our engines had to be shipped to the UK or Taiwan province for overhaul," said Niu Xuqiang, an executive at an aviation engine maintenance company. "Now, zero-tariff imports of spare parts and tools allow global airlines to save substantially on maintenance and logistics."
Benefiting from its strategic location — within a four-hour flight radius of about half the world's population — the base has obtained 22 aviation maintenance licenses from 17 countries, while the Hainan FTP's zero-tariff policy has also given it a competitive edge by reducing maintenance costs by 15 percent, said Wang Haiye, director and general manager of the one-stop aircraft maintenance industrial base.
This year's Government Work Report called for actively encouraging foreign investment, expanding pilot zones for opening up the services sector, and further opening-up in key areas such as telecommunications, healthcare and education. Notably, this year also marks a pivotal moment for Hainan FTP, as it enters the critical phase of its Customs closure operation and broader opening-up.
Against the backdrop of an unstable global trade environment, the Hainan FTP is increasingly seen as a strategic stronghold in boosting China's domestic consumption momentum and external economic engagement and resilience, said industry experts.
"Despite the profound and complex changes facing economic globalization, regional economic integration and intra-regional trade and investment liberalization remain an overarching trend," said Chi Fulin, president of China Institute for Reform and Development.
"Higher-level openness, positioning Hainan as an open gateway to both the Pacific and Indian Oceans, is both a national strategy and Hainan's historical role," Chi said, adding that as regional economic integration deepens under RCEP and CPTPP, Hainan's port will amplify its capacity to foster trade cooperation and resource pooling.
Ong Chong Yi, executive director of the Belt and Road Initiative Caucus for Asia Pacific in Malaysia, sees Hainan as a platform supported by institutional safeguards to counter protectionism.
"By attracting enterprises to set up units here — then exporting to third-party markets — Hainan can serve as a linchpin for cross-regional collaboration and supply-chain resilience," Ong said.
"Leveraging Think Tank Strength to Advance RCEP's Role and Steadily Promote Free Trade" Consensus of RCEP Think Tank Experts
On the morning of April 16, 2025, the RCEP Think Tank Network (RCEPTTN) convened a thematic seminar titled "The Future Trend of Global Free Trade and RCEP's Role" in a hybrid format. The discussion centered on key topics such as RCEP's role in promoting free trade, advancing regional free trade arrangements with a focus on Asia, and addressing the challenges, opportunities, and pragmatic strategies facing RCEP. Experts and scholars from all 15 RCEP member countries and representatives of the RCEPTTN engaged in discussions on these topics and reached the following consensus.
1. Isolation and confrontation lead only to stagnation and conflict, while openness, cooperation, mutual benefit and win-win cooperation are the shared aspirations of all countries, and the prevailing trend of the times. At present, the global economy is facing severe challenges from unilateralism and protectionism, the multilateral trading system is under significant strain, and global free trade is facing disorder. Asia, as a high point for global cooperation and development, is facing both unprecedented challenges and significant opportunities. Asian countries must work together to safeguard the free trade order and oppose trade protectionism.
2. RCEP is an important strategic measure in response to trade protectionism. It serves as a key driving force for promoting regional free trade, advancing regional economic integration, and achieving inclusive and sustainable development among its members. The signing and implementation of RCEP marks a major milestone in regional economic integration, fully demonstrating the firm commitment of countries in the region to multilateralism and free trade. RCEP's greatest strength lies in free trade based on open markets and inclusive rules. In the current context, the benefits brought by RCEP are particularly valuable.
3. Steadily advance RCEP with free trade as the main theme, promote the joint construction of the world's largest high-level free trade area, and accelerate the process of free trade within the region. It is also necessary to resolutely uphold the rules-based multilateral trading system, safeguard the stability of industrial and supply chains, and maintain a predictable, transparent, non-discriminatory, fair, inclusive, and open regional economic environment.
4. Strengthen cooperation between RCEP and other free trade partners, and jointly build a network of partnerships that support free trade in order to collectively address trade protectionism and unilateralism. RCEP should actively deepen constructive cooperation with emerging regions and other economies committed to free trade. Through cooperation with actors committed to a fair, rules-based international order, RCEP can more effectively shield itself from the disruptive impacts of unilateralism and protectionism.
5. Accelerate the improvement and refinement of RCEP governance mechanism. Strengthen the evaluation and analysis of the implementation of RCEP provisions and promote the upgrading of its rules. Establish an RCEP Secretariat at an appropriate time; set up an RCEP Dispute Settlement Committee; expedite the process of RCEP expansion; and convene an RCEP Summit to enhance synergy in RCEP's implementation.
6. Give greater play to the role of think tanks within RCEP region. In the face of serious challenges posed by global changes, think tanks should pool wisdom, enhance consensus, and unite efforts. Jointly strengthen research on free trade and regional economic integration and provide policy suggestions; jointly build high-level international exchange platforms to promote dialogue and cooperation among think tanks; jointly promote cooperation in emerging fields under the RCEP framework; jointly carry out various forms of capacity-building initiatives; and jointly promote cultural exchange and mutual understanding within the region.
As regional economic integration and the Belt and Road Initiative continue to expand, trade cooperation between China and Malaysia is experiencing robust momentum. From infrastructure and agriculture to bilateral trade and industrial collaboration, the two countries are entering a new stage of multifaceted and high-level engagement, according to officials and trade analysts from both sides.
The latest data from China's General Administration of Customs indicate bilateral trade between China and Malaysia reached an all-time high of $212.03 billion in 2024, marking a year-on-year increase of 11.4 percent. China exported $101.46 billion worth of goods to Malaysia, up 16.1 percent year-on-year, while imports from Malaysia stood at $110.57 billion, a 7.4 percent increase.
China has been Malaysia's largest trading partner for 16 consecutive years, while Malaysia is China's second-largest trading partner in the Association of Southeast Asian Nations and the largest importer of Chinese goods in the region. Notably, China's primary imports from Malaysia include integrated circuits, computers and components, palm oil and plastic products. Key Chinese exports to Malaysia include computers and components, ICs, clothing and textiles.
In particular, agricultural products have emerged as one of Malaysia's primary export categories to the Chinese market, with palm oil and durians continuing to gain popularity. In August 2023, Malaysia's fresh durians entered the Chinese market for the first time, expanding consumer choices and opening new opportunities for Malaysian agricultural exports. Malaysia became the fourth ASEAN country authorized to export fresh durians to China, following Thailand, Vietnam, and the Philippines. Previously, Malaysia mainly exported frozen durians.
Arthur Joseph Kurup, Malaysia's deputy minister of agriculture and food security, said this development has significantly enriched China's fruit market and expanded export channels for Malaysian agricultural products.
Flagship project
China's investments in Malaysia are increasingly diverse, with a significant focus on infrastructure. Chinese companies are engaged in constructing railways, bridges, hydropower stations, roads, subways and telecommunications infrastructure.
A cornerstone of the cooperation is the East Coast Rail Link, constructed by China Communications Construction Co. Spanning more than 600 kilometers, the railway starts in Kota Bharu on the border with Thailand, travels south to Kuantan, and then turns west toward Port Klang, cutting across the Malaysian peninsula.
Scheduled to begin operation by 2027, the project reached a major milestone in January with the successful laying of track in sections covering approximately 400 km between Maran in Pahang and Kota Bharu in Kelantan. In April, the 3.5-km-long Dungun Tunnel 1 was completed two months ahead of schedule. To date, 38 of the project's 41 tunnels have been completed.
"Dungun Tunnel 1 is a crucial link between Kota Bharu and Port Klang," said Darwis Abdul Razak, CEO of Malaysia Rail Link, the project owner. "Its smooth completion was made possible by the exceptional efforts, cutting-edge technologies and rigorous safety standards implemented by CCCC's project teams." He added the project has prioritized environmental protection and minimized disruption to local communities during construction.
At a recent joint operations and maintenance agreement signing between CCCC and MRL in Putrajaya, Malaysia, Chinese Ambassador to Malaysia Ouyang Yujing noted that the ECRL would play a pivotal role in driving growth, creating jobs and improving livelihoods. He expressed hope that both sides would continue to operate and maintain the project effectively, thereby maximizing its economic and social returns.
Malaysian Transport Minister Anthony Loke Siew Fook also underscored the importance of the ECRL as a crucial land bridge connecting Malaysia's eastern and western coasts. He said that by linking Kuantan Port and Port Klang, the railway would significantly enhance logistics efficiency and help Malaysia better integrate into the global trade network.
RCEP as a platform
Further reinforcing regional cooperation, China's Guangxi Zhuang autonomous region announced on April 7 it will leverage the Regional Comprehensive Economic Partnership to broaden and deepen trade with Malaysia. The initiative aims to expand bilateral trade volumes and contribute to building a closer China-ASEAN community with a shared future.
As China's only provincial-level region with both land and sea borders with ASEAN, Guangxi has been working to scale up trade with Malaysia. From January to February, Guangxi's total imports and exports with Malaysia surged to 2.9 billion yuan ($396 million) — up 63.2 percent year-on-year. Among the standout exports from Guangxi are lithium-ion batteries and electric vehicles. On the import side, Malaysian crude oil, palm oil, bird's nests, nuts and frozen fruits are enjoying robust sales in Guangxi's domestic markets.
Two-way investment between Guangxi and Malaysia is also becoming more dynamic. As of March, Guangxi had filed 58 non-financial investment projects involving Malaysian enterprises and institutions, with a cumulative actual investment of $1.37 billion. In addition, local companies had completed foreign engineering contracts worth a total of $210 million, with investments spanning manufacturing, mining and services.
Notably, the China-Malaysia Qinzhou Industrial Park in Qinzhou, Guangxi, and the Malaysia-China Kuantan Industrial Park in Malaysia's Pahang state have pioneered the "Two Countries, Twin Parks" model, offering a new platform for cross-border industrial collaboration. By the end of 2024, the Qinzhou park had registered over 30,000 enterprises, with signed investment agreements surpassing 340 billion yuan. Meanwhile, the Kuantan park saw signed investments exceeding 46 billion yuan.
Malaysia's consistent participation in the China-ASEAN Expo over the past 21 years further underscores the strength of bilateral ties. Since 2004, more than 2,400 Malaysian companies have participated in the event, generating over $1.4 billion in sales.
Guangxi plans to continue diversifying investment channels, implementing pre-establishment national treatment and a negative list system for foreign investors. Efforts will also focus on expanding exports of high-tech products such as lithium-ion batteries, ICs, construction machinery and new energy vehicles.
wangjinhui@chinadaily.com.cn
KUALA LUMPUR — Representatives of major media outlets and think tanks from China and the 10 countries of the Association of Southeast Asian Nations, or ASEAN, gathered in Kuala Lumpur on Friday for the China-ASEAN Media and Think Tank Forum to discuss and promote common development.
Under the theme "Strengthening ASEAN-China Cooperation", participants called for joint efforts to tell the success stories of cooperation between China and ASEAN.
In his opening speech, Malaysia's Deputy Prime Minister Fadillah Yusof reaffirmed his country's unwavering commitment to "a cohesive ASEAN-China partnership that will contribute to regional stability and global economic resilience".
He spoke highly of the forum as an invaluable platform for the exchange of ideas among media organizations and think tanks, noting their pivotal role in bridging perspectives, informing policy and promoting regional harmony in this complex era.
It is the shared aspiration of the people of China and ASEAN member states to work together as partners and move forward together, Lyu Yansong, editor-in-chief of Xinhua News Agency, said.
"China and ASEAN countries are vital forces in the Global South. China-ASEAN relations have, in recent years, transcended the bilateral sphere, gaining profound significance in Asia and exerting a global impact," said Lyu.
New momentum
He added that the media and think tanks must amplify the call for jointly building a peaceful, safe and secure, prosperous, beautiful and amicable home and generate new momentum for building an even closer China-ASEAN community with a shared future.
"I hope our friends from the media and think tanks will actively share the stories of China-Malaysia and China-ASEAN cooperation, and contribute to the building of a community with a shared future for mankind," Ouyang Yujing, Chinese ambassador to Malaysia, said.
Wong Chun Wai, chairman of Malaysian National News Agency (Bernama), said strengthening civilizational exchanges between ASEAN and China, which share a vibrant cultural landscape, would help set an example for unity and cooperation among Global South countries, and strengthen the connection and mutual respect among them.
Wong also called for greater media and think tank cooperation between ASEAN and China in areas such as the use of artificial intelligence in mass media practices.
The Xinhua Institute, a think tank affiliated with Xinhua News Agency, presented a report titled "RCEP and the Vision of the Maritime Silk Road: New Frontiers for China-ASEAN Cooperation "at the forum.
A consensus was also released at the forum on Friday.
According to the Kuala Lumpur Consensus document, attendees of the forum called on media and think tanks from China and ASEAN to jointly promote cultural exchanges and closer people-to-people ties, setting an exemplary model for Global South cooperation.
China and ASEAN play pivotal roles in advancing regional cooperation, fostering shared prosperity, maintaining stability, and elevating the status of Global South countries, the document noted.
Co-hosted by China's Xinhua News Agency and Malaysia's Bernama, the forum brought together approximately 260 representatives from more than 160 media outlets, think tanks, government agencies and enterprises across ASEAN countries and China.
Xinhua
President Xi Jinping's two-day visit to Vietnam, starting on Monday, is the first stop on his three-nation trip to Southeast Asia and his second visit to the country in less than 18 months. It reflects the smooth communication and coordination between the two neighbors that has injected strong momentum into their comprehensive cooperation.
Thanks to their strong traditional friendship and the strategic significance Beijing and Hanoi have attached to developing bilateral ties, Sino-Vietnamese cooperation has flourished in many fields, bringing tangible benefits to the two peoples.
This has been made possible because the two countries, both treading the path of reform and modernization, view the development of each other as an opportunity and have not let their differences overshadow the larger picture of good neighborly ties. And with their economies highly complementary, there are bright prospects in expanding their cooperation.
The breadth and depth of the burgeoning partnership was highlighted by Vietnamese Deputy Prime Minister Bui Thanh Son's announcement prior to the commencement of Xi's visit that approximately 40 agreements across various sectors were expected to be signed during his stay.
President Xi on his part has stressed the need for the two countries to strengthen their collaboration. Calling for the bolstering of their production and supply chain cooperation and expanding ties in areas such as artificial intelligence and the green economy, Xi expounded in an article, published by Vietnam's Nhan Dan newspaper ahead of his visit, a vision of shared prosperity and progress that deeper cooperation could yield. This is reflected in Vietnam's commitment to enhancing collaboration in defense, security, and infrastructure, with a specific emphasis on rail links, which further underscores the multifaceted nature of their deepening cooperation.
For more than 20 years, China has remained Vietnam's largest trading partner, while Vietnam has been China's largest trading partner among the Association of Southeast Asian Nations for years. Looking ahead, the prospects for enhanced Sino-Vietnamese cooperation in the Belt and Road Initiative, infrastructure development, and cultural exchanges present promising avenues for mutual growth. The commitment to expanding bilateral trade, facilitating connectivity, and fostering people-to-people ties embodies their shared vision for a prosperous and interconnected future.
Indeed, as both countries are prime targets for the US administration's weaponization of tariffs, they have everything to gain from standing together and jointly safeguarding the multilateral trading system, stable global industry and supply chains, and an open and cooperative international environment. It is therefore a natural choice for the two neighbors to deepen their comprehensive strategic cooperation.
Their latest diplomatic engagement, which is expected to outline a new blueprint for building a community with a shared future between China and Vietnam, also holds significance for the economic landscape of the region as a whole.
As both countries navigate the challenges posed by the US administration's wanton assault on global trade, a strengthened commitment to mutual development and cooperation guided by the principles of equality and mutual benefit and leveraging the symbiotic trade dynamics between the two countries can consolidate and reinforce their resilient and mutually beneficial economic partnership. That sets a good example for other countries in the region and beyond — showing there is still life in international trade after the US' shocking display of imperiousness.
The evolving partnership between China and Vietnam holds immense potential for driving economic growth in the region, fostering regional stability, and advancing mutual interests. As both nations deepen their collaboration across various sectors, the path toward a resilient and prosperous future for the region is paved with opportunities for shared success and enduring friendship.
As shown by the Regional Comprehensive Economic Partnership agreement, Asia is a highland for cooperation and development. As a key free trade agreement initiated by ASEAN, the RCEP agreement encompasses a comprehensive framework covering trade in goods and services, investment, intellectual property, electronic commerce, competition, and more. The agreement not only enhances market access but also paves the way for a new era of economic opportunities for regional businesses.
President Xi's reaffirmation of the strategic importance of Vietnam in China's neighborhood diplomacy underscores China's commitment to mutual prosperity and stability in the region.
As nations navigate the increasingly complex global landscape, the imperative for solidarity, mutual trust, and cooperation becomes ever more paramount. Xi's call for joint efforts to counter challenges such as decoupling and to uphold international fairness and justice resonates with the need for a collaborative approach to address shared concerns and promote regional stability.
The economic and trade ties between China and Vietnam are expected to rise to a new level, driven by the two countries' highly complementary trade structures, Vietnam's modernization drive and the growing influence of the Regional Comprehensive Economic Partnership, according to market watchers and exporters.
Amid rising protectionism and unilateral challenges, China and Vietnam are pressing ahead with industrial upgrading and digital transformation, positioning themselves to tap into new growth opportunities across key sectors such as advanced manufacturing, green energy, smart logistics, e-commerce and regional supply chain integration, they said.
United by common aspirations for sustainable growth and economic resilience, the two countries are on track to forge even deeper and more dynamic economic ties in the years to come, said Wan Zhe, a professor specializing in regional economic development at Beijing Normal University.
Bilateral business relations have witnessed remarkable progress, especially in recent years, with Vietnam introducing key national strategies such as the National Green Growth Strategy for 2021-2030, vision towards 2050; the National Strategy on R&D and Application of Artificial Intelligence; and the National Strategy for 4th Industrial Revolution.
Wan said that these forward-looking initiatives have significantly enhanced Vietnam's appeal as a destination for investment and innovation, attracting a substantial influx of Chinese and foreign capital and technologies over the past several years.
"This growing synergy has laid a strong foundation for deeper economic and technological collaboration between the two countries," she added.
Vietnam has become a key overseas investment destination for China. In 2024, from January to August, Chinese companies invested $1.97 billion in the Southeast Asian country, maintaining a rapid rate of growth, according to the latest data released by China's Ministry of Commerce.
Benefiting from a booming intermediate goods trade, the rising freight volume on the China-Vietnam Railway and substantial gains resulting from the RCEP and the Belt and Road Initiative, China-Vietnam trade surged 14.6 percent year-on-year to 1.85 trillion yuan ($254.05 billion) in 2024, statistics from China's General Administration of Customs showed.
This momentum continued in the first two months of this year, with the value of bilateral trade rising 8.2 percent on an annual basis to 270.96 billion yuan, customs data showed.
China's exports to Vietnam include machinery, telecommunication equipment, electronic components, industrial raw materials, trains, ships, trucks, household appliances and construction materials.
In addition to agricultural and aquatic products such as seafood, fruits, coffee and rice, Vietnam's exports to China include smartphones, computers, rubber, footwear, garments and furniture.
In the medium to long term, China and Vietnam are more likely to deepen industrial complementarity and division of labor rather than engage in direct competition, said Gao Lingyun, a researcher at the Institute of World Economics and Politics, which is affiliated with the Chinese Academy of Social Sciences in Beijing.
"This is because both countries are at different stages of development and have distinct strengths," said Gao, adding China leads in high-end manufacturing and technological capabilities, while Vietnam offers advantages in assembly industries and young and high-quality workers.
On top of this, free trade deals with various economies, such as the EU (European Union)-Vietnam Free Trade Agreement and Comprehensive and Progressive Agreement for Trans-Pacific Partnership, have opened up opportunities, he added.
Echoing that sentiment, Lan Qingxin, a professor specializing in cross-border investment studies at the University of International Business and Economics in Beijing, said that compared with other Southeast Asian countries as well as India and Mexico, Vietnam holds a competitive edge and market potential due to its proximity to China and its friendly foreign investment policies.
This complementary dynamic fosters a win-win partnership, reinforcing the depth and resilience of China-Vietnam economic ties, said Lan.
Ningbo Dafa Chemical Fiber Co, a textile and chemical raw materials manufacturer in Ningbo, Zhejiang province, has been actively exploring new possibilities in the Vietnamese market.
"Vietnam has a well-developed furniture manufacturing industry, which drives strong demand for textile yarns and synthetic fiber materials. Our products are mainly used for furniture padding and bedding production," said Wang Ling, the company's sales director.
Ningbo Dafa's exports to Vietnam grew by 10.3 percent year-on-year to 20.64 million yuan in the first two months of this year, according to Ningbo Customs.
The specter of geopolitical instability, once part of a distant academic discourse, has become a tangible reality for businesses worldwide. Eight years ago, a seismic shift occurred when the United States, under then president Donald Trump, signaled a retreat from its traditional role as a global economic and security guarantor.
The echoes of that promise, "America First", resonate even more powerfully now as US voters have again chosen Trump as their president and supported the Republican Party in the elections. As a result, the Republicans dominate both the Senate and the House of Representatives, reinforcing the perception that reliance on US engagement is a precarious strategy for the global economy.
This resurgence of economic nationalism in the US necessitates a fundamental reassessment of regional economic strategies. The message "don't count on US" is a clear signal which both Trump and Vice-President JD Vance sent during the election campaign. In fact, they have been repeating the message even after assuming power.
As such, "don't count on US" is no longer a mere cautionary note; it is a stark imperative. Businesses and policymakers alike must acknowledge the shifting sands of global power dynamics and adapt to them accordingly.
In anticipation of this potential vacuum, regional actors have been trying to create alternative paths. Some of the Asia-Pacific countries have prepared for such a US policy pivot. The Regional Comprehensive Economic Partnership agreement, which includes China, the Republic of Korea and Japan and is a sprawling trade agreement encompassing 15 Asia-Pacific countries, stands as a testament to this strategic foresight.
"We have prepared RCEP" signifies the collective recognition that regional prosperity hinges on intra-regional cooperation, not external dependence. The RCEP represents a paradigm shift, prioritizing the deepening of economic ties among member states.
The concept of "regional partnership" is central to this new paradigm. It underscores the importance of fostering collaborative frameworks that transcend traditional bilateral relationships. This entails building resilient supply chains, harmonizing regulatory standards, and promoting investment flows within the region. It is aimed at creating a self-sustaining economic ecosystem, less vulnerable to the vagaries of external political currents, especially caused by the US.
The potential to "boost regional economic ties" is immense. The RCEP, with its vast market access and streamlined trade rules, can unlock opportunities for businesses across diverse sectors. Small and medium-sized enterprises, often the backbone of regional economies, stand to significantly benefit from reduced trade barriers and enhanced market access.
Furthermore, the RCEP can stimulate investment in infrastructure development, technological innovation and human capital, laying the foundation for long-term economic growth.
China is also well prepared to deal with the situation created by the US' tariffs by strengthening its "dual circulation development paradigm" (which allows the domestic and overseas markets to reinforce each other, with the domestic market as the mainstay) and exploring new markets by extending the Belt and Road Initiative. Moreover, China has been successfully shifting from being the "world's factory" to becoming an intellectual property rights economy.
But the path forward is not without challenges. Effectively implementing the RCEP requires sustained political will and a commitment to ending the lingering trade frictions. RCEP member states should deepen collaboration to overcome the regulatory hurdles, streamline customs procedures, and ensure fair competition. Also, the region must remain vigilant against protectionist tendencies and strive to maintain an open and inclusive trading environment.
Beyond the RCEP, other regional initiatives, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, also play a crucial role in shaping the future of Asia-Pacific trade. These agreements, while different in scope and membership, share a common objective: to foster deeper economic integration and promote sustainable development.
Moreover, the strategic implications of a less-engaged US go beyond economics. Security concerns, particularly in the South China Sea and on the Korean Peninsula, demand more robust regional security architecture. The Asia-Pacific region must cultivate its own mechanisms for conflict resolution and security cooperation, reducing its reliance on US help and mediation.
The US firmly told the European Union that Washington will no longer bear the lion's share for NATO's security, asked the EU to manage NATO and European security issues on their own, and not count on the US anymore. The US' message is crystal clear: The EU has achieved economic integration, so the EU alone has to maintain the bloc's security mechanism, because the US wants to focus on addressing its own matters.
Such behavior was pretty common in the US before World War II. They have decided they resort to their original way of thinking.
In conclusion, the Asia-Pacific region must chart its own course. The resurgence of the US' tariff policy, coupled with the potential for diminished American engagement, underscores the urgency of strengthening regional partnerships and deepening economic ties. The RCEP, as a cornerstone of this strategy, offers a promising path toward a more resilient and prosperous future.
While challenges remain, the collective determination to "boost regional economic ties" provides a powerful antidote to the uncertainties of a changing global landscape. The era of the US' unquestioned economic leadership is waning as the era of regional self-reliance is dawning.
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