How China is making its mark in Asean
Alvina Soh
With a population of over 650 million and boasting one of the world’s fastest growing regions, South-east Asia is becoming the next battlefield for Chinese businesses seeking out new opportunities to expand their international footprints.
China has long been Asean’s top trading partner. But Chinese businesses are also making their presence felt in emerging industries such as tech, electric mobility and even tourism. What are the strategies adopted and the challenges they face?
Read more in our round up of a 7-part series on China and Asean here.
Wealth management
The draw? Singapore’s clear regulation and openness to emerging technologies makes the nation a hotbed for tech startups.
Even with a minimum fund size of S$20 million, investors from China’s Greater Bay Area form nearly half of new family offices in Singapore in Q1 2022.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Talent acquisition
But as China tech companies are in a hurry to grow their market share, they also face stiff competition from global giants and local players.
This has sparked off a talent war in Singapore, with tech titans dangling high salaries, flexible work arrangements, and professional development opportunities in a bid to attract talent.
SEE ALSO
Electric mobility
Valued at US$500 million in 2021, the Asean electric vehicle (EV) market is expected to quadruple to US$2.6 billion by 2027.
China’s EV manufacturers are making inroads in the region - with Singapore as their starting base despite a nascent local market.
To them, Asean is both a consumer market as well as a test bed for research and innovation.
Chinese brands in the consumer electronics, e-commerce, mobile gaming and entertainment spaces tend to have stronger market positions, compared to other sectors.
Vietnam boom
Vietnam is a popular alternative factory choice for companies with production and supplies in existing China plants.
In contrast to China’s zero-Covid stance, Vietnam’s rapid rebound and border reopening has propelled it into the new Super Factory” status.
In fact, Vietnam’s total exports exceeded Shenzhen’s by US$27.75 billion in Q1 2022.
Foreign investment
Copyright SPH Media. All rights reserved.
