NANNING, Sept 19 — Cumulative two-way investment between China and the Association of Southeast Asian Nations has exceeded $515 billion, according to data from the Ministry of Commerce, as Chinese manufacturers shift from exporting goods to building production capacity and supply networks inside Southeast Asian markets. The figure, which covers investment through the end of July, was cited ahead of the 23rd China-ASEAN Expo, scheduled to run in Nanning, Guangxi Zhuang autonomous region, from Sept 17 to 21.
Analysts and business executives say the region has become a growing focus of Chinese companies’ overseas expansion plans, with manufacturers tailoring products to local demand and investing more in on-the-ground operations.
From export-led to locally rooted
The shift marks a change in how Chinese firms approach the region. Rather than shipping finished goods from plants in China, more manufacturers are building production capacity, local supply networks and market expertise closer to their customers. Li Guanghui, dean of academic affairs of the China-ASEAN School of Economics at Guangxi University in Nanning, said Southeast Asia is becoming a testing ground for Chinese companies building a global presence.
Success increasingly requires them to develop capabilities overseas rather than simply replicate business models developed at home, he said. The diversity of ASEAN markets is pushing Chinese companies to become more flexible, Li added, with strategies shaped around local consumers, business practices and competitive conditions rather than a single regional approach.
Digital and green cooperation
Wang Liping, director-general of the Commerce Ministry’s department of Asian affairs, said China and ASEAN have more room to deepen investment cooperation in emerging areas such as the digital economy, green development and the blue economy. “Companies on both sides can make greater use of artificial intelligence, big data and the internet of things to better connect production, logistics and trade,” Wang said, adding that greater digital integration will help companies respond more quickly to changes in demand and build more resilient regional supply chains.
Such investment is increasingly taking the form of production and operations within ASEAN markets. Safewell Group, a Ningbo, Zhejiang province-based security products manufacturer, built its business selling traditional products such as safes and gun cabinets in Europe and the United States.
The company has since moved up the value chain from mechanical security products to smart systems incorporating biometric access and connected alarms, while also expanding its manufacturing footprint with a factory established in Indonesia last year. Safewell produces higher-value components, including locking systems and electronic modules, in China, while sourcing sheet metal and structural parts locally in Indonesia. Its Indonesian plant handles final assembly, testing and regional deliveries.
Wang Lei, the company’s vice-president, said Indonesia’s growing number of middle-income consumers and expanding retail sector are driving demand for security products across homes, hotels, shops and financial outlets. Safewell’s exports to ASEAN markets rose 12 percent year-on-year between January and August.
More broadly, Ningbo’s exports to ASEAN rose 23.7 percent year-on-year to 82.89 billion yuan ($12.35 billion) in the first seven months of 2026, data from Ningbo Customs showed.
Diversifying manufacturing
Guoguang Electric Co, a manufacturer of speakers and acoustic components in Guangzhou, Guangdong province, has increased its production capacity in Vietnam as part of a broader effort to diversify its manufacturing operations and better serve overseas customers. While the company established its Vietnam plant in 2019, its Chinese operations continue to supply components such as antennas, connectors and adapters to the facility for the production of Bluetooth speakers and other audio products.
The trend underscores how Chinese firms are embedding themselves in Southeast Asian supply chains, moving from export-led models to localized production and regional delivery, as they seek to capture growing consumer demand and navigate shifting trade dynamics. With the Nanning expo running through Sept 21, the coming days will show whether the investment momentum carries into new commitments in the digital, green and blue economy sectors that Wang identified as the next frontier for China-ASEAN cooperation.
