China has become a primary hub in the production network of the ASEAN+3 region, comprising ASEAN member states plus China, Japan and South Korea, the Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) said Monday.<\/p>\n
The past two decades have seen a fundamental structural shift underpinning the region’s resilience, the institute said in its ASEAN+3 Regional Economic Outlook 2026.<\/p>\n
“From the supply side, regional production networks have evolved from a Japan-centered hub into a denser, more interconnected architecture anchored by China,” it said, noting that this was supported by China’s expanding manufacturing capacity, logistics infrastructure, and central position in intermediate goods trade.<\/p>\n
“These supply linkages reflect interdependence rather than unidirectional dependence,” the report said.<\/p>\n
On the demand side, ASEAN+3 has emerged as a major source of global final demand, collectively larger than the United States, with intraregional demand now far more significant than two decades ago.<\/p>\n
This relationship is also two-way: within ASEAN+3, China is the dominant demand hub, while other economies are key sources of final demand for Chinese exports, the report noted.<\/p>\n
At the same time, foreign direct investment (FDI) reinforced these links, with rising intraregional FDI complementing trade and production relationships, the report said.<\/p>\n
During Monday’s release conference, AMRO Chief Economist He Dong told reporters that for supply chains to be resilient, it is important for economies involved to increase domestic-value-added content, meaning larger positive spillovers from FDI into the domestic economy.<\/p>\n
Firms in ASEAN can benefit by upgrading local capacity. By increasing domestic value-added, regional firms gain more opportunities and make supply chains more resilient to external shocks, He said.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"China has become a primary hub in the production network of the ASEAN+3 region, comprising ASEAN member states…\n","protected":false},"author":2,"featured_media":587518,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-587517","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/587517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=587517"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/587517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/587518"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=587517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=587517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=587517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}