China-ASEAN Economic Cooperation Strengthens and Becomes More Productive, Fueled by Free Trade and AI

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NANNING, China, Sept. 18, 2025 — Despite prevailing global uncertainties and increasing protectionist sentiments, China and the Association of Southeast Asian Nations (ASEAN) are actively pursuing deeper integration.

 

This dedication is underscored by the successful completion of the China-ASEAN Free Trade Area 3.0 upgrade negotiations, announced in May, an accomplishment poised to strengthen economic connections significantly.

After more than two years of negotiations, the enhanced agreement now encompasses emerging sectors like the digital economy, green development, and supply chain connectivity.

Fueled by this significant upgrade and the burgeoning AI sector, the 22nd China-ASEAN Expo, organized by the Guangxi International Expo Affairs Bureau and set to commence on September 17 in south China’s Guangxi Zhuang Autonomous Region, is anticipated to highlight fresh cooperation impetus and opportunities. This year, the annual event has attracted over 3,200 exhibitors from 60 nations, as companies worldwide seek to engage with two of the globe’s most open and vibrant markets.

Significantly, the five-day expo will feature a 10,000-square-meter AI pavilion, a dedicated space for new quality productive forces, and an exhibition zone focused on the blue economy. Furthermore, green and low-carbon technologies, alongside new energy vehicles, are prominent features of this year’s event. These sectors hold considerable growth potential for China-ASEAN economic and trade collaboration.

The expansion is expected to be driven by advancements in manufacturing and digital infrastructure.

China has significantly increased its investments in digital infrastructure, both in magnitude and reach. This includes substantial allocations to the 5G sector, a crucial facilitator of AI, with numerous Chinese technology firms involved in pertinent digital initiatives.

Guangxi, serving as China’s southern portal to ASEAN, leads this integration effort. Its geographical closeness to ASEAN positions it as a key initiator of cross-border collaboration initiatives.

AI, poised to revolutionize investment environments, has become a pivotal element for future collaboration. ASEAN nations, embracing digital transformation, have expressed a strong interest in enhancing cooperation with China in this domain.

Both China and ASEAN countries are experiencing strong impetus in AI collaboration. In April 2025, Guangxi Beitou IT Innovation Technology Investment Group Co., Ltd. forged a partnership with MY E.G. Services Berhad, Malaysia’s prominent digital services provider, to establish an AI innovation and cooperation center. This center will concentrate on fields like blockchain applications and robotics.

Concurrently, the China-ASEAN Artificial Intelligence Collaborative Innovation Center, located in Nanning, the capital of Guangxi, has secured contracts with 16 enterprises across ASEAN nations, aiming to facilitate industrial modernization.

For 16 consecutive years, China has maintained its position as ASEAN’s primary trading partner, just as ASEAN has been China’s largest trading partner for five years running.

While global trade remains impacted by instability, China-ASEAN cooperation serves as an exemplar of steadiness. Through improved trade frameworks and the adoption of AI, economic and trade collaboration between China and ASEAN is poised to become significantly more dynamic and yield even broader mutually beneficial results.

Source: Guangxi International Expo Affairs Bureau

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