Chinese investment in ASEAN expands to benefit both sides

Oppo's success in Southeast Asia shows how Chinese investment in the region has evolved over the past decade — with a strong focus on digital industries and advanced technology that is responsive to domestic market needs, conscious of corporate social responsibility, and contributes to the local economy.

"Chinese firms seem to place greater emphasis on being good corporate citizens in their adopted locales. It is a common refrain among Chinese multinationals that they must benefit local communities and support local employment," Erica Tay, director of macro research at Kuala Lumpur-based Maybank, told China Daily.

Tay said while the first wave of Chinese direct investments in the Association of Southeast Asian Nations in the early 2000s was mostly in State-owned enterprises involved in heavy industries, the second wave was aimed at private sector digital industries, and advanced manufacturing.

Chinese manufacturers that have expanded their capacity in ASEAN have been able to tap into abundant supplies of labor, land and energy, Tay said. These companies are also able to access a new market in ASEAN — the world's fifth-biggest economy with a combined population of over 670 million.

"In search of new markets where competition is less stiff than back home, Chinese firms have expanded their footprint by addressing the needs of ASEAN consumers," Tay said, adding that Chinese tech and e-commerce giants, tried and tested in the domestic market, are equipped to compete in emerging ones in Asia.