Media OutReach Newswire

2024-11-13 10:00

China's economic influence on Southeast Asia: insights with global broker Octa

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 13 November 2024 - As China solidifies its influence across Southeast Asia, it becomes the region's largest trading partner and a crucial investor in areas like infrastructure, technology, and renewable energy. This release explores how China's expanding economic reach shapes Southeast Asian markets, from Indonesia's booming coal exports to Vietnam's tech transformation, and provides a glimpse into future growth projections for 2025.

China's economic influence on Southeast Asia: insights with global broker Octa

China's role as a key economic partner for Southeast Asia has been growing at a rapid pace, influencing various sectors, from infrastructure to technology and trade. In 2023 alone, China's trade with ASEAN countries reached an estimated $975 billion, making China the region's largest trading partner by a significant margin. Southeast Asian nations, in turn, are benefiting from this relationship through increased investments, robust infrastructure development, and a steady demand for exports. The mutual economic benefits are undeniable as both China and Southeast Asia gain from this deepening integration. In this release, Kar Yong Ang, a financial market analyst at global broker Octa, explores China's expanding economic influence in Southeast Asia, examining the opportunities and challenges this partnership brings to investors and markets alike.

China as Southeast Asia's economic powerhouse
China's infrastructure investments have significantly reshaped Southeast Asia's economic landscape, establishing deeper ties between countries and impacting financial markets across the region. Through the Belt and Road Initiative (BRI), China has committed over $180 billion to projects in ASEAN nations, building essential infrastructure such as ports, railways, and highways. Notable examples include Malaysia's $11 billion East Coast Rail Link, designed to enhance connectivity between trade hubs and reduce logistical costs, and the Jakarta-Bandung high-speed rail project in Indonesia, which has already begun transforming trade routes and accelerating economic activity.

This increased connectivity and reduced transportation costs are estimated to boost regional trade volumes by up to 10% annually, supporting stronger local currencies and promoting more stable currency pairs across Southeast Asia. Moreover, these projects contribute to a nearly 15% rise in stock prices within sectors directly tied to infrastructure, such as construction and logistics, creating substantial opportunities for investors aiming to capitalise on the region's expanding role as a trade and logistics hub.

China's influence is particularly notable in the following sectors.
  1. Infrastructure and manufacturing
    China's investments in Southeast Asian infrastructure, such as the $11 billion East Coast Rail Link in Malaysia, reshape regional logistics. By 2024, China accounted for more than 50% of foreign direct investment in the region's manufacturing and construction sectors, including smart city and transportation hub development projects.
  2. Technology and digital transformation
    China invests heavily in Southeast Asia's digital transformation, funding all sorts of projects, from e-commerce platforms to cloud technology hubs. In Vietnam, for example, Chinese investments in electronics and information technology exceed $30 billion, helping the country become one of the leading electronics exporters in the region.
Spotlight on 2024: China's economic impact on Southeast Asia's major markets
China's demand for Southeast Asia's resources and commodities continues to be a powerful driver for economic growth in the region.
  • Malaysia
    In Malaysia, exports to China have surged, particularly electronics and machinery. Malaysia's trade with China grew by over 9% in 2023, and this trend is anticipated to continue as Malaysia aligns its trade strategy with China's consumer demand in manufacturing and electronics.
  • Indonesia
    China is Indonesia's largest coal and palm oil market, accounting for 40% of Indonesia's total coal exports. This reliance has translated into a strong trade relationship, boosting Indonesia's GDP by an estimated 1.5% in 2024 due to coal and palm oil exports alone.
  • Vietnam. China's $30 billion investment in Vietnam's technology sector is helping transform the nation into a major electronics exporter, contributing nearly 15% to Vietnam's GDP. These investments are crucial as they help Vietnam transition from an agriculture-based economy to a technology and manufacturing hub.
Looking ahead to 2025: Next for China-Southeast Asia relations
As Southeast Asia seeks continued economic growth, China is expected to maintain its position as a key partner, bolstered by agreements like the Regional Comprehensive Economic Partnership (RCEP). Covering 30% of the world's GDP, RCEP offers Southeast Asian nations access to streamlined trade routes and reduced tariffs, which could boost intra-regional trade with China by up to 10% over the next five years. Projections suggest that China will further invest in ASEAN's digital economy and infrastructure, aligning with global sustainability trends and the region's digital transformation goals.

However, as China deepens its economic ties, Southeast Asia is also exploring diversification in its export markets. With an expected 5.5% annual growth rate in Southeast Asia's GDP through 2025, countries like Vietnam and Malaysia are expanding their trade strategies to reduce economic dependency on China. These countries are exploring new trade partnerships in Europe and North America, reflecting a cautious approach to balancing economic opportunities with China and other global players.

China's expanding role in Southeast Asia signifies more than just a trading partnership; it embodies a symbiotic relationship that continues to evolve with mutual benefits. The region's dependence on Chinese investment and trade links shows no signs of slowing, yet Southeast Asian nations are seeking to balance this by exploring additional economic ties globally.
Hashtag: #Octa

發佈者對本公告的內容承擔全部責任

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.

source: Octa

【你點睇?】美歐官員今周商俄烏戰爭問題,你認為俄烏戰爭是否正加快步向結束?► 立即投票

人氣文章
最近7天
1
PapaHome淘寶家具實體店22日開幕,選址尖沙咀中港城,料創100個就業機會
2
高息定存 | 一周高息合集,蛇年定存金蛇起舞,1個月定存高達8厘
3
港股 | 午市前瞻 | AI應用概念炒作有錢途 下階段部署邊隻好?
4
日入而息 | 習近平據報下周見科企領袖,證監會審視8券商孖展風控,大酒店轉蝕9億
5
高息定存 | 信銀國際12個月港元定存高達3.5厘
6
彭博亞洲20大富裕家族,香港5大家族上榜,新地郭氏排名最高,無李嘉誠李兆基?
7
David Webb:因病情惡化,將有序結束個人財經網站
8
港股 | 蕭猷華:恒指短線回調,中線繼續看好
9
iPhone SE 4或於本周內上架官網
10
AI | 蔡崇信確認阿里與蘋果合作,撰文談DeepSeek崛起帶來兩大啟示
1
港股 | 蕭猷華:內地AI發展迅速,阿里巴巴股價看俏
2
高息定存 | 一周高息合集,銀行高息搶存,富邦1個月4.88厘,華僑1年期3.6厘
3
PapaHome淘寶家具實體店22日開幕,選址尖沙咀中港城,料創100個就業機會
4
英偉達 | DeepSeek衝擊AI晶片行業結構 英偉達暴跌仍未急抄底
5
高息定存 | 華僑銀行推新春港元定存優惠,88天或188天享3.68厘
6
啟德體育園明天足球賽測試,4.4萬公僕參與涉逾400萬車馬費
7
高息定存 | 花旗3個月港元定存息加至4厘,信銀國際3.88厘
8
環球央行 | 歐洲央行宣布再次減息0.25厘,符合市場預期
9
一本萬利 | 2025年的五個「勿」(有片)
10
電騙 | 黃俊碩:多管齊下,防治內地留學生受騙
11
高息定存 | 一周高息合集,蛇年定存金蛇起舞,1個月定存高達8厘
12
易經看世界 | 乙巳蛇年趨吉五招:言行注意甚麼?應遠離甚麼人?(有片)
13
專訪 | 關稅戰 | 香港物流協會副會長梁庭彰:美物流商停收包裹對跨境電商打擊重大
14
港股 | 午市前瞻 | iPhone SE難救中國市場 專家提醒比電已超買
15
洪灝專訪 | 淘寶衝擊巨大,港樓價未反映大周期拐點(有片)
16
【FOCUS】螺絲殼裏做道場,DeepSeek致勝啟示
17
專訪|洪灝:美股更大跌幅在前面,恐需習慣4%通脹(有片)
18
習近平應約與特朗普通電話,特:冀盡快與習見面
19
大S | 台灣藝人徐熙媛因流感併發肺炎逝世,享年48歲
20
新世界 | 摩通:新世界若債務違約或打開行業「潘朵拉盒子」
21
DeepSeek推出即上蘋果中國區榜首,能力直追OpenAI
22
收市短打 | 楊韻銳:港股升勢有成交配合 惟留意關鍵阻力位!
23
高息定存 | 一周高息合集,部分銀行逆市加息,南商3個月加至3.8厘
24
港股 | 蕭猷華:春節假後,恒指逐步上望21000點
25
馬斯克明拆特朗普台,指其星際之門計劃「假大空」
26
特朗普就職 | 特朗普上台後行動列表
27
【FOCUS】侵侵呼籲全球「降息」,日銀祭18年最激進加息
28
港股 | 午市前瞻 | AI應用概念炒作有錢途 下階段部署邊隻好?
29
神州經脈 | 特朗普或與華討論關稅,人民幣大漲,滬指連升兩周
30
高息定存 | 富邦一周港元定存高達9.88厘,一個月4.88厘
專業版
HV2
精裝版
SV2
串流版
IQ 登入
強化版
TQ
強化版
MQ

【etnet 30周年】多重慶祝活動一浪接一浪,好禮連環賞!

【蛇年行大運 新年好賞「飾」】etnet賞太歲開運趨吉避凶神器

etnet榮獲HKEX Awards 2023 「最佳證券數據供應商」大獎

貨幣攻略

大國博弈

說說心理話

Watch Trends 2024

北上食買玩

Art Month 2024

理財秘笈

流感高峰期

山今養生智慧

輕鬆護老