China–ASEAN trade is continuing to strengthen as growing flows of intermediate goods, expanding transport links and deeper regional integration reshape supply chains across Asia.
Bilateral trade reached 4.34 trillion yuan in the first half of 2026, up 18.2% year on year. Trade in intermediate goods—including components, parts and production inputs—rose even faster, increasing 24.5% to 2.86 trillion yuan and accounting for roughly two-thirds of total trade.
The growth highlights the increasing integration of manufacturing and industrial value chains between China and Southeast Asia. Trade agreements such as RCEP and the China–ASEAN Free Trade Area are helping companies move materials and production stages across borders while reducing trade and transaction costs.
Transport connectivity is expanding alongside trade. Freight trains between Guangxi and Vietnam are now operating daily, carrying machinery and electronics southbound while transporting tropical fruits such as durian and mangosteen northbound.
The China–Laos Railway is also supporting stronger regional flows. Import and export trade handled by the railway reached 17.17 billion yuan in H1 2026, up 33.8% year on year, while the network now handles more than 3,900 categories of goods and connects freight services with markets across 19 countries and regions.
New infrastructure is expected to provide another boost. The 134.2-kilometer Pinglu Canal in Guangxi has begun vessel trials ahead of its planned September opening. The waterway will connect the Xijiang River system with the Beibu Gulf and is expected to shorten inland-water routes from parts of southwest China to the sea by more than 560 kilometers compared with existing routes.
Southeast Asia is also becoming an increasingly important destination for Chinese companies expanding internationally. A 2026 business survey found that 80% of surveyed Chinese companies planned overseas business activity over the next three years, with ASEAN emerging as their preferred regional destination.
The broader trend points toward deeper regional supply-chain integration, supported by trade agreements, multimodal transport infrastructure, digitalization and growing investment across Asia.
As global trade faces continued uncertainty, stronger China–ASEAN connectivity is creating a more integrated regional network for manufacturing, sourcing and distribution.
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