As economic ties continue to deepen, Chinese companies are expanding their presence in ASEAN countries beyond exports, moving into investment, local production, technological cooperation and regional operations.
China and ASEAN have been each other's largest trading partners for several consecutive years. In the first half of 2026, bilateral trade reached 4.34 trillion yuan (about $643.44 billion), an increase of 18.2% year on year.
However, ASEAN is far from a homogeneous market, with member states differing in development priorities, industrial strengths and policy approaches. For Chinese companies expanding across the region, the key question is how to navigate these differences and turn them into opportunities for more effective regional cooperation.
In a recent interview with Bridging News, Kat W. Wong, executive director at the Center for Advanced Studies and Research Malaysia, proposed the concept of "ASEAN Synergy." She said ASEAN countries share many similarities, but each has its own priorities. If they compete for the same industries, investments and projects, competition within the region is inevitable.
A more effective approach, she said, is to identify complementary roles across countries. Two or three countries, for example, could collaborate in the same industry, each contributing to different parts of the value chain and sharing resources and processes.
Cross-border energy cooperation offers one example. Laos provides electricity, Thailand and Malaysia connect regional power grids, and Singapore provides market demand. Each country plays a different role based on its own strengths. In January 2026, power authorities from Laos, Thailand and Malaysia signed a second-phase transmission agreement to further advance the four-country power trading arrangement.
For Chinese companies, investing in one ASEAN country does not have to mean operating in a single market. It can also provide access to resources, production and markets across the region, allowing companies to participate more deeply in ASEAN value chains.
Malaysia offers a case in point. Huang said the country's multilingual, multiethnic society and open market are among its key attractions for international investors. But Malaysia is looking for more than capital and projects. Foreign investment, she said, should also bring technology, expertise and spillover benefits to local industries.
The numbers underline the importance of foreign investment. In 2025, Malaysia approved 207.1 billion Malaysian ringgits ($50.65 billion) in foreign investment, accounting for 48.5% of total investment. China was the country's second-largest source of foreign investment.