Beijing, April 7: A report released on April 6 by the ASEAN Plus China-Japan-South Korea Macroeconomic Research Office highlights that China has become a ‘key hub’ in the production network of this region over the past 20 years.
The organization stated in its 2026 ASEAN Plus China-Japan-South Korea Regional Economic Outlook report that there has been a fundamental transformation in the economic structure of the ASEAN Plus China-Japan-South Korea regions during this period. This change has become a significant foundation for the region’s resilience.
The report noted extensive growth on the supply side within the regional production network. “This network, which was originally centered around Japan, has now transformed into a denser and more interconnected structure, with China as its pillar.”
This transformation has been made possible due to China’s “expanded manufacturing capacity, logistics infrastructure, and dominant position in the trade of intermediate goods.” The supply chain relationship is now characterized as interdependent and collaborative, rather than one-sided reliance on China.
From a demand perspective, the report indicates that there has been a remarkable increase in demand within the ASEAN region and the China-Japan-South Korea area over the past two decades, making it a significant source of global end-consumer demand. In 2022, its total demand surpassed that of the United States. This shift is primarily attributed to China’s rise as a major consumer both regionally and globally.
Furthermore, the report states that the increase in foreign direct investment in the region is boosting trade and production networks.
(Source: China Media Group, Beijing)
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