China now exporting infrastructure investment to ASEAN

Two-way investment, big-ticket infrastructure projects, the development of e-commerce and cross-border RMB transactions will play a bigger role in China-ASEAN economic ties, officials said on Tuesday.

Chen Zhou, director of the department of Asian affairs of the Ministry of Commerce, said commodity, agricultural and low-end products are no longer what dominate China's trade with members of the Association of Southeast Asian Nations.

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As prices are high for many goods and infrastructure projects, and market competition is less intense in Southeast Asia, China's business model there has changed from exporting goods to establishing manufacturing facilities, as well as research and development centers and sales networks. It also hopes to sign contracts for highway, port, dam and energy projects in the region, Chen said.

"This shift could have great business implications as it comes at a time when both sides are eager to diversify and adjust their industrial structure for exports," he said at a media conference organized by the State Council Information Office.

Investment between China and ASEAN countries hit $120 billion by the end of June this year, with $40 billion from China and $80 billion from ASEAN.

"Such two-way investment as China's infrastructure projects in ASEAN will not only further the exports of China's electromechanical products and construction materials, but will also promote overall trade cooperation," Chen said.

Trade between China and ASEAN jumped 10.9 percent to $444 billion in 2013, eclipsing the 7.6 percent increase in China's total foreign trade.

China is the largest trading partner of ASEAN, and the group has emerged as China's third-largest partner, a major investment destination and an important tourist destination.