Seizing opportunities in Asean
Chinese companies eyeing expansion in the region will need to have deep local understanding, adaptable strategies and trusted financial partners
ASEAN is emerging as one of the most important destinations for Chinese companies going global. With nearly 700 million people, a growing middle class and resilient growth prospects, the region offers both scale and proximity to China.
While the appeal is strong, however, success in Asean requires businesses to navigate a diverse patchwork of regulations, cultures, and economic structures, all while managing shifting geopolitical dynamics.
Recent developments are helping reduce some of these barriers. The conclusion of negotiations for the China Asean Free Trade Area (Cafta) 3.0 is one such milestone.
By expanding beyond traditional trade into new areas such as digital economy, green economy and supply chain connectivity, Cafta 3.0 will make it easier for Chinese enterprises to enter Asean markets, reduce operational costs, and enhance the region’s appeal as a manufacturing base and a consumer market.
Even before Cafta 3.0 was signed, the momentum had been building. In 2024, China’s non-financial outbound direct investment (ODI) to Asean rose 12.6 per cent. This reflects a broader shift in Chinese investment from infrastructure and heavy industry to technology, consumer goods, clean energy, and digital services.
At the same time, Chinese firms are increasingly adopting a “China Plus One” approach, expanding their footprint into Asean to diversify supply chains and mitigate tariff exposure.
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The rocky road into Asean
These shifting dynamics are being shaped by a new generation of Chinese enterprises that bring different ambitions and capabilities to the region. Many are “born global”, built for international markets from day one. They are also often sector leaders in fast-growing areas such as solar, batteries, electric vehicles (EVs), and consumer tech.
Yet despite these strengths, challenges remain. Chinese businesses entering Asean often face unfamiliar regulatory environments, complex tax systems, and cultural nuances that affect consumer behaviour.
There are also various financial needs across different stages of market entry. Initially, enterprises require insights into local laws, tax regulations, and consumer habits.
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During the investment phase, however, capital efficiency becomes a key priority, requiring smart structuring and financing. Once operations begin, the focus shifts to managing working capital, optimising treasury flows, and navigating foreign exchange exposure.
Meanwhile, there is a growing need for cross-border renminbi (RMB) services. As more Chinese companies transact across Asean, settling in RMB can reduce foreign exchange (FX) risk, especially within China-linked supply chains.
Supporting your Asean journey
With a presence in most Asean markets including in Singapore for 166 years, Standard Chartered is well placed to support the changing needs of Chinese companies expanding into the region. Our local presence gives us deep knowledge of regulatory frameworks and on-the-ground operating conditions.
Furthermore, we have built a team of Mandarin-speaking bankers in Singapore, Malaysia, Vietnam, Indonesia and Thailand who not only understand our clients’ business priorities, but can also help them adapt to local markets.
In financing, we are active across the entire business lifecycle. From bilateral and project loans during the setup phase to working capital and FX hedging tools during operations, we tailor our support to each company’s needs.
For example, we recently provided a US$43 million facility to a Chinese auto subsidiary in Indonesia to support local dealer operations. We also supported a US$10 million green term loan for its EV expansion, timed with its cash flow cycle.
Mergers and acquisitions are also on the rise. Chinese companies looking to acquire or partner Asean firms can rely on Standard Chartered for deal structuring and advisory services. We complement these with sustainable finance capabilities, offering a suite of green solutions to support clients in high-emission sectors.
Capitalising on digital opportunities
Another area where we see growing interest is the digital economy. According to the Boston Consulting Group, Asean’s digital economy is expected to reach US$1 trillion by 2030, and could double to US$2 trillion with the progressive implementation of the Asean Digital Economy Framework Agreement (Defa).
This pact, set to be signed in 2026, aims to standardise digital trade, cross-border data flows, cybersecurity and payments, creating a more seamless regional digital ecosystem.
At Standard Chartered, we support the region’s growth in the digital space through initiatives such as SGTraDex, a Singapore-based platform that enables trusted data exchange across supply chains. We also operate Trust, our digital bank venture in partnership with FairPrice Group, which now serves over one million customers in Singapore.
Under Project Guardian, a collaborative initiative spearheaded by the Monetary Authority of Singapore (MAS), we led a pilot programme to explore tokenisation of trade finance assets, leveraging blockchain technology to issue asset-backed security tokens with underlying trade finance and working capital loans.
Building a roadmap to success
As Asean deepens its financial and trade connectivity, the region is becoming an ideal testing ground for the next generation of global Chinese brands. Initiatives such as Cafta 3.0, Defa, and the growing use of local currencies, including RMB, are making it easier for companies to navigate regulatory differences and manage risks more effectively.
Chinese enterprises looking to succeed in Asean must combine innovation with localisation. With the right partners, a clear roadmap and strong execution, they can build sustainable, long-term businesses that benefit from the region’s dynamism and diversity.
The writer is CEO, Singapore and Asean, Standard Chartered Bank
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