Policy push to deepen trade with SE. Asia

China's aim to make domestic consumption a key driver of growth is expected to further expand trade with Southeast Asia, analysts say.

China is the biggest trading partner and a major market for members of the Association of Southeast Asian Nations. A higher consumption rate in China can create more opportunities for the export-oriented bloc.

According to the Government Work Report submitted on Thursday to China's top legislature for deliberation, strengthening domestic consumption is a major task in the next five years.

The report highlighted the need to improve living standards and increase consumer spending, as well as to invest in both physical assets and human capital, aiming to boost consumption as a share of GDP and expand effective investment.

Yangchoon Kwak, a senior professor at the College of Economics at Rikkyo University in Tokyo, said that since China sits at the center of East Asia's production network, its stable growth is of significant importance to the regional economy.

"As China expands domestic demand, demand for capital goods and intermediate products from Japan, South Korea and ASEAN countries is likely to increase, potentially boosting economic activity across the region," Kwak said.

The continued expansion of the Chinese market could also serve as an important driver supporting the recovery of global trade and investment, he said.

Joaquin Sy, a board member of the Association for Philippines-China Understanding, said "a strong and progressive China can only benefit the region", adding that the outlook is also in line with China's pursuit of prosperity for all.

Pooja, head of the marketing division of Indonesian cacao trader Surya Kakao International, said the company is keeping an eye on the Chinese market, hoping that rising consumption will translate into higher imports of cocoa powder and cocoa butter.

Indonesia is among ASEAN's largest commodity exporters.

China is targeting GDP growth of 4.5 to 5 percent this year, "while striving for better in practice", according to the work report.

Seo Chang-bae, honorary president of the Korean-Chinese Association of Social Science Studies and a professor of Chinese studies at Pukyong National University in South Korea, said the sharp increase in ultra-long special treasury bonds and local government special-purpose bonds, announced alongside the expansionary fiscal policy in the report, can help strengthen the domestic economy.

Kwak of Rikkyo University said China's GDP target is "widely seen as realistic and prudent" on the back of the slowing global economy and external headwinds.

"Amid challenges such as adjustments in the real estate market and demographic changes, the Chinese government is placing greater emphasis on maintaining stable growth while gradually advancing economic restructuring and upgrading," he said.

Lucio Blanco Pitlo III, president of the Philippine Association for Chinese Studies, said that beyond boosting regional trade, "neighborhood diplomacy" with ASEAN will remain a priority in China's foreign policy.

He said this can be reflected in continued support for regional organizations such as ASEAN and multilateral frameworks like the Lancang-Mekong Cooperation mechanism, as well as sustained connectivity and development initiatives including the Belt and Road Initiative.

Leonardus Jegho in Jakarta, Hou Junjie in Tokyo and Yang Han in Hong Kong contributed to this story.