Addressing the Jakarta Forum on ASEAN-China Relations, he said the grouping and China must pioneer a forward-looking partnership anchored in resilient and equitable value-chain integration as well as climate and tech-responsive infrastructure, to chart a more inclusive and sustainable course in today's fragmented world.
The ASEAN-China partnership has delivered substantial economic achievements, he noted. Two-way trade surged dramatically from $105.9 billion in 2004 to $770 billion in 2024, accounting for 20 per cent of ASEAN's total trade, he said.
“China has been ASEAN’s largest trading partner since 2009, while ASEAN has become China’s largest trading partner since 2020. Additionally, China’s Foreign Direct Investment (FDI) into ASEAN has grown more than 80-fold in the same period, from $226 million to $18.4 billion, making China ASEAN’s fourth-largest source of FDI in 2024,” Kao said in his speech.
“With over 480 million internet users, ASEAN represents one of the world's fastest-growing digital markets. In 2023, ASEAN's digital economy grew by 11 per cent, contributing $218 billion in gross merchandise value. ….Looking ahead, it is projected to reach $1 trillion by 2030, and the upcoming ASEAN Digital Economy Framework Agreement, if fully implemented, could boost this value to $2 trillion,” he said.
“In 2023, the ASEAN Strategy for Carbon Neutrality was adopted as a comprehensive framework to accelerate the transition to a low-carbon and climate-resilient future. The strategy focuses on key areas including green value chain integration, circular economy and the development of interoperable carbon markets. If fully realised, it could generate up to $5.3 trillion in additional value-added, attract up to $6.7 trillion in green finance, and create up to 66 million additional jobs in the region by 2050,” he said.
Though the ASEAN-China Air Transport Agreement has facilitated the mobility of business and tourist travelers, significant untapped potential remains between ASEAN and China that should be tapped into, he observed.
“Further collaboration in multimodal transport—encompassing railways, highways, and maritime logistics—is crucial for enabling the seamless and efficient movement of goods and services between our economies,” he added.
ALCHEMPro News Desk (DS)
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