How Chinese firms can optimise their ‘going out’ strategy in Southeast Asia

In an era of profound geopolitical and economic shifts, two concurrent trends define the global landscape. First, while the United States sees capital flowing into its equity markets amid the AI boom, central banks and asset managers are diversifying away from US bonds and US dollars to hedge against historically high fiscal deficits and debt levels.

As the US pushes for onshoring manufacturing and Europe defends its industries, East Asia – particularly Asean+3 – is deepening supply chain integration. Today, the Association of Southeast Asian Nations and its partners China, Japan and South Korea together boast the world’s largest market.

Second, alongside China’s record export performance, Chinese state-owned and private enterprises are exporting capital, investments and talent to Brics nations, with Asean emerging as a primary destination. This shift carries enormous implications for business models, host-country trade and employment, and brings intense competition to domestic businesses.