Analysis by Péter Goreczky
ASEAN’s economic ties with China have proven to be more crisisproof than merchandise trade and direct investment flows with the rest of the world. Before the pandemic, China had continuously increased its share in the economic relations of Southeast Asia, and this trend seems to have continued in the COVID era as well. In 2020 the region’s trade deficit with China decreased, while China’s share in both ASEAN export and import climbed. The COVID crisis further strengthened the importance of the technology sector and the need for a digital infrastructure; as a consequence, the expansion of Chinese tech giants in the region continued. Southeast Asian countries explicitly count on China in returning to pre-crisis economic growth levels. Most ASEAN states consider infrastructure development one of the catalysers of economic recovery, creating the opportunity for China to proceed with the Belt and Road Initiative.
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