"Both China and ASEAN are the world's most vibrant economies, with close proximity and good neighborliness, growing economic and trade ties, expanding demand for cooperation, and promising prospects for mutually beneficial development." Xu Ningning, Executive Director of China - ASEAN Business Council and President of RCEP Industrial Cooperation Committee, said to a journalist from International Business Daily, the implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP) has not only further drived trade and investment of the two sides, but also provided a broad space for Chinese enterprises going to ASEAN. 

More and more Chinese enterprises in ASEAN  

This year marks the 10th anniversary of the "Belt and Road" Initiative and the 20th anniversary of the China- ASEAN strategic partnership. At present, China- ASEAN relations continue to grow at a high level, showing a trend of comprehensive, in-depth, active and close cooperation. 

Xu Ningning said that more and more Chinese enterprises are entering ASEAN. In the first half of this year, among the top 10 major countries alongside the Silk Road that were non-financially invested directly by Chinese enterprises, ASEAN countries accounted for 7. The top three are all ASEAN countries: Singapore, Indonesia and Malaysia respectively. 

On June 2, RCEP officially came into force for the Philippines, marking its full entry into force for the 15 signatory countries. With preferential policies, Chinese enterprises are also beneficiaries and practitioners of the mutual construction of the "Belt and Road" and the implementation of RCEP. 

Recently, SUMEC Co. Ltd. had a new move in expanding the ASEAN market - its complete company and the AbotisPower signed an EPC for a 137MWac PV project located in Calatrava of the Philippines. This project is the fifth PV turnkey project carried out by Sumitomo Corporation in the Philippines, and is also a new order after Sumitomo Corporation signed the 130MWac photovoltaic project in La Laguna with its old client, Aburtis. 

SUMEC set company's deputy general manager Ding Yang Huiqin (丁杨惠勤) told the journalist from International Business Daily, SUMEC has long been engaged in the Philippine market, and this new project will provide 270 million kilowatt-hours of electricity for the local power grid each year. In the future, SUMEC will continue to closely focus on the construction of the “Belt and Road”, strengthen the localized layout, further cultivate overseas clean energy market, and continuously improve the capacity of general contracting for engineering and construction as well as the supply of complete sets of equipment. 

Given the successful experience of Chinese enterprises in ASEAN in recent years, Xu Ningning said that when developing the ASEAN market, enterprises need to formulate new market development strategies and tactics in a timely manner according to new changes of the world’s economic and regional landscape, and the implementation of FTA between countries, and continue to open up new space for cooperation, as well as to innovate in terms of business ideas, organizational models and production technologies, so as to be integrated into the general trend of cooperation between China and ASEAN countries.  

"At the same time, it is important to note that Chinese enterprises going into ASEAN should not only consider short-term benefits, but also long-term development." Xu Ningning emphasized that enterprises should take a long-term view, and take integrity as their code of conduct to ensure product, project and service quality. 

Further enhancement of intergovernmental exchanges and cooperation 

As the benefits of RCEP continue to be released, exchanges and cooperation between the governments of China and ASEAN countries are also increasing, and they are also continueing to promote "going out" and "bringing in", which play a positive role in promoting cooperation between enterprises of both sides. 

In April this year, the "Invest in China Year" investment promotion event organized by the Ministry of Commerce of China held in ASEAN, and the "Invest in China Year" (into ASEAN) and China-Malaysia "Two Countries, Two Parks" -Malaysia-China Kuantan Industrial Park 10th anniversary was celebrated in Malaysia. This activity contributed to a total of 17 signing and cooperation projects, amounting to a total of 39.23 billion yuan, covering non-ferrous metals and renewable metals trade and production, cross-border logistics operations and cold chain cooperation, clean energy and new energy development, environmental protection and new materials, and other fields. 

At the same time, this year, some provinces (districts and cities), which are in line with the trend, have also focused on ASEAN, trying to carry out business activities, practice the construction of the "Belt and Road", seize the opportunity of the RCEP to highlight the openness and cooperation. Chongqing, Hainan, Yunnan, Guangxi, Fujian, Shanghai, Guangdong, Shandong and other places have led delegations to visit ASEAN, to have meetings, to find business opportunities, signing a series of cooperation agreements. 

To enhance the economic and trade cooperation of provinces (districts and cities) and ASEAN countries, Xu Ningning suggests, first of all, we need to increase the precision of industrial docking, find the entry point and focus of the cooperation between the two sides, in order to improve the relevance and effectiveness of cooperation. Relevant departments should also encourage enterprises to carry out trade and investment training with ASEAN countries. Secondly, cooperation between provinces (districts and cities) should be strengthened, and the role of pilot free trade zones, free trade ports, high-tech zones, economic and development zones, and logistics parks should be given full play in the development of economic and trade cooperation with ASEAN countries. 

"The 20th China- ASEAN Expo and the China- ASEAN Business and Investment Summit will be held in September this year, so all parties should take full advantage of this important platform to participate in the event and exhibition, and promote innovative and pragmatic cooperation." Xu Ningning said. 

Source：International Business Daily 

Translation: 21CMCC