Digital cooperation a new engine driving growth for China, ASEAN

Students attend a class in a classroom aided by China at the Lao Institute of Posts and Telecommunication. (People's Daily/Sun Guangyong)

In Pingxiang, south China's Guangxi Zhuang autonomous region, China's first cross-border smart port—the Youyiguan Port or Friendship Pass smart port project—is nearing the final stages of testing.

Upon commissioning, the facility will harness satellite navigation and 5G technologies to integrate autonomous transport vehicles, automated cargo-handling systems, and intelligent inspection mechanisms. A centralized smart dispatch platform will enable fully automated, 24/7 customs clearance operations.

As China's largest land port connecting to ASEAN member states, the digital transformation of Friendship Pass is poised to dramatically improve customs efficiency while bolstering the stability of China-ASEAN industrial and supply chain networks.

The technology-driven infrastructure exemplifies how China and ASEAN nations are harnessing digital innovation to propel high-quality development across multiple sectors. Digital collaboration has emerged as a cornerstone of bilateral and multilateral cooperation between China and ASEAN, reflecting their shared commitment to technological advancement and regional economic integration.

A Thai vocational school has launched an e-commerce training program in cooperation with a Chinese enterprises. Photo shows students of the school selling traditional handicrafts via livestream. (People's Daily/Bai Yuanqi)

China has established cross-border terrestrial fiber-optic cable networks connecting with Vietnam, Laos, and Myanmar, achieving digital interconnectivity with more than ten ASEAN telecommunications operators.

Chinese enterprises are actively advancing digital infrastructure development across ASEAN, partnering with Thailand to deploy 5G networks, collaborating with Indonesia on national broadband initiatives, building data centers in Malaysia, and expanding fiber-optic coverage in the Philippines to accelerate regional digital inclusion.

Bilateral e-commerce between China and ASEAN has experienced sustained growth, with transactions registering an average annual increase exceeding 20% in recent years—emerging as a pivotal engine for trade expansion.

Financial technology integration continues to deepen, exemplified by Malaysia's PayNet partnering with China's WeChat Pay in 2024 to enable payment services for over 2 million Malaysian merchants through the Chinese platform.

China has strengthened institutional cooperation through memorandums of understanding (MOUs) on digital economy investments with Malaysia, Singapore, Vietnam, Indonesia, and Cambodia. Notably, the upgraded China-ASEAN Free Trade Area (Version 3.0) now incorporates its first dedicated chapter on digital economy collaboration, marking a milestone in regional economic integration.

Trucks enter and exit the Friendship Pass in Pingxiang, south China's Guangxi Zhuang autonomous region. (People's Daily/Chen Shangwen)

At the 27th China-ASEAN Summit in October 2024, the two sides issued a joint statement on facilitating cooperation in building a sustainable and inclusive digital ecosystem, formally designating digital ecosystem development as a priority area for future collaboration.

Amid expanding digital investment and policy coordination, ASEAN nations are actively seeking to deepen digital partnerships with China. Thai Deputy Prime Minister and Minister of Digital Economy and Society Prasert Jantararuangtong, highlighted China's digital achievements —particularly in infrastructure, 5G deployment, and AI innovation—as providing valuable references for ASEAN's digital transformation.

"China-ASEAN digital cooperation has a solid foundation," said Xu Liping, researcher at the National Institute of International Strategy of the Chinese Academy of Social Sciences. He outlined four structural advantages underpinning China-ASEAN digital cooperation: 1. Political Synergy: Enhanced strategic alignment through deepening mutual trust enables technology transfer and joint innovation; 2. Shared Development Goals: As developing economies, both sides prioritize leveraging digital technologies to boost economic growth and social welfare; 3. Institutionalized Platforms: Accelerated regional integration through mechanisms like the China-ASEAN (10+1) Cooperation Mechanism and the China-ASEAN Technology Transfer Center; 4. Complementary Strengths: China's technological expertise and digital economy experience synergize with ASEAN's market demand and growth potential.

Talent development remains central to sustaining cooperation. Chinese enterprises have emerged as key contributors to digital workforce cultivation in ASEAN. For instance, in 2023, Alibaba partnered with Cambodia's Ministry of Commerce to deliver digital skills training for nearly 100 Cambodian SMEs; The Chinese-aided Lao Institute of Posts and Telecommunications has commenced operations, serving as Laos' flagship ICT talent hub; and Chinese tech giant Huawei has launched university-industry partnerships in Thailand, targeting the training of 100,000 digital professionals by 2025.

Xu emphasized that the imminent implementation of the upgraded China-ASEAN Free Trade Area (Version 3.0)—which incorporates dedicated provisions for digital economy collaboration—will amplify technology cooperation as a strategic driver. This framework is expected to reinforce industrial supply chain resilience and regional development while unlocking transformative potential for joint digital ecosystem development.