Core Viewpoint - The article discusses the evolving dynamics of China’s trade and investment strategies in response to geopolitical pressures, highlighting the ASEAN market as a key destination for Chinese industries and trade due to its strategic value and resource advantages [2][3]. Trade and Investment Trends - China's export value is projected to grow from $2.59 trillion in 2020 to $3.57 trillion by 2024, maintaining a global export share of approximately 15% [2]. - The ASEAN region has emerged as China's largest export market since 2022, with a noticeable decline in the share of exports to the United States [2][4]. Strategic Shifts in Corporate Behavior - The concept of "China+1" has evolved, with companies diversifying supply chains to mitigate risks associated with over-reliance on Chinese manufacturing, particularly following the 2008 financial crisis and the U.S.-China trade tensions [3][4]. - The trend of Chinese companies going abroad has intensified since 2018, driven by the need to avoid tariff barriers, with countries like Vietnam and Mexico acting as intermediaries for exports to the U.S. [4]. Investment Focus Areas - The "New Three Items" (electric vehicles, solar energy, and battery production) are central to China's manufacturing investments in ASEAN, with a cumulative investment of $65.91 billion from 2020 to 2024, accounting for 64.1% of total manufacturing greenfield investments [5]. - Key investment destinations within ASEAN include Thailand, Malaysia, and Indonesia for electric vehicles, and Vietnam, Thailand, and Cambodia for solar energy [5]. Challenges in Local Integration - Despite the rapid expansion of Chinese investments in ASEAN, challenges such as high operational costs in Thailand and difficulties in local sourcing persist, leading to continued reliance on domestic supply chains [6]. - The need for better local integration and adaptation to the regional market is emphasized, as rapid outflows of capital can disrupt local economies [6]. Policy Recommendations - The article suggests that the Chinese government should strategically support outbound investments, while host countries should balance the opportunities and challenges presented by Chinese enterprises [6][8]. - Recommendations include improving regulatory frameworks, enhancing cross-border payment systems, and fostering collaboration between Chinese and local businesses to achieve mutual benefits [11][12].