As a testament to the long-standing and strategically significant relationship between China and ASEAN, the 20th ASEAN-China Expo of 2023 in Nanning, the capital of the Guangxi Zhuang Autonomous Region in China, brings plenty of opportunities to further solidify ties through entrepreneurial exchanges. Based on the theme ‘Work Together for a Harmonious Home and a Shared Future Promoting High-Quality Development of the Belt and Road and Building an Epicentrum of Growth’ the 2023 expo builds on the spirit of China-ASEAN ties by capitalizing on opportunities to maximize industrial, economic and regional cooperation. It further demonstrates that US-led policies seeking to undermine corporate sectors in the region and militarize it have been shunned for more pragmatic approaches. 

The reasons are evident. Firstly, the 2023 event is marked by the attendance of 1,953 enterprises which is an increase of 18.2% from the attendance witnessed in 2022. Furthermore, many of these corporations feature in the top 500 businesses of the world. CAEXPO 2023 is also being attended by the Prime Ministers of Cambodia, Laos, Malaysia, and Vietnam in addition to the Vice President of Indonesia, Thailand’s Deputy Prime Minister, and the ASEAN Secretary-General Kao Kim. Throughout the course of the four-day event, ASEAN member states will benefit from Chinese exhibitions including intelligent, green, and digital technologies which, according to a spokeswoman for the Ministry of Commerce in China, Shu Jueting, brings out new opportunities for cooperation between the two sides.  

Secondly, CAEXPO 2023 provides an ideal platform for regional enterprises to once again explore market opportunities for greater cross-border trade. Note that the Expo is the first physical flagship event in China coordinated by MATRADE or the Malaysia External Trade Development Corporation since the border opening in January 2023. As a result, opportunities exist for Malaysian exporters and manufacturers to promote their products in targeted sectors within the Chinese market including food and beverages, professional services, logistics, and healthcare. Similarly, a total of 16 enterprises from the Philippines will use 20 booths at the Nanning International Convention and Exhibition Center and focus on showcasing home accessories, palm oil, and other products as part of their presentations. 

The CAEXPO will also seek to strengthen the China-ASEAN Free Trade Agreement 3.0 which witnessed its third round of negotiations in June 2023. Recall that version 3.0 of the FTA spoke about efforts to invest in green and digital economies and strengthen supply and industrial chains for economic sustainability. Attempts to strengthen investments in areas such as petrochemicals, automobiles, and steel manufacturing while lowering tariffs beyond the existing 90% of commodities are also aimed at enhancing business efficiencies and protecting the rights of consumers on both sides through the development of micro, small, and medium enterprises (MSMEs). All this works well for injecting confidence and momentum while carrying the entrepreneurial spirit forward for both sides. 

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The expo also comes at a time as ASEAN and China grapple with greater uncertainty in the world economy. Yet encouragingly, despite the pernicious effects of the COVID-19 pandemic, shockwaves from the Ukraine War, and attempted American containment of China, China has remained ASEAN’s largest trading partner for 14 consecutive years while both sides have remained each other’s largest trading partners for three consecutive years. It is hence, important to build on positive trajectories. The latest data from the Ministry of Commerce clearly indicates that in 2022, trade between the two sides surpassed $970 billion which again, demonstrates a high degree of mutual trust between enterprises and governments despite global economic downturns. 

By carrying the entrepreneurial spirit forward, CAEXPO 2023 also prioritizes existing regional connectivity prospects of which the Regional Comprehensive Economic Partnership (RCEP) is of utmost importance. Based on trade volume alone, RCEP is the largest trading bloc in history with 15 member states (including ASEAN member states) and accounts for 30% of global GDP. Innovative activities at the expo such as the Thematic Side Event on the Institutional Opening-up for New Regional Economic Growth and the third RCEP Economic and Trade Cooperation Business Summit can provide impetus to macroeconomic frameworks through consensus building between corporations and investing in important sectors such as the green economy and e-commerce.  

Increased digitalization remains the key to moving forward in this regard. Importantly, both sides became highlands of digital economic development with China’s digital economy reaching $6.9 trillion as the second-largest digital market in the world in 2022. Similarly, the accelerated rollout of digital platforms and technologies by ASEAN as well as the booming e-commerce sectors has resulted in the top three countries of online retail sales hailing from the bloc. China and ASEAN are also natural partners in attracting platforms such as Tencent, Huawei, and ZTE and these enterprises have assisted regional states to build digital economic ecosystems which is critical for the regional economy. 

Contrastingly, the United States policy of defining the region as ‘Indo-Pacific’ instead of ‘Asia Pacific’ and seeking to build fronts against China has only sowed discord. The majority of ASEAN states adhere to the policy of neutrality which includes Singapore and Malaysia. There is little appetite in Kuala Lumpur or elsewhere to directly confront China and militarize the region. In that regard, the 2023 COAEXPO provides greater entrepreneurial opportunities to carry the spirit of ties forward. 

The key challenge for both sides would be to carry their positive momentum forward in 2023 and beyond. US foreign policy, in terms of promoting economics and prosperity, has failed.