Boosting Regional Development: Upgrading China-South Asia Trade

Published on Jun 22, 2025.
Boosting Regional Development: Upgrading China-South Asia Trade

The 9th China-South Asia Expo, taking place in Kunming, the capital of Yunnan Province, has emerged as a significant platform for economic collaboration. Sri Lankan businessman U.A. Ajith highlighted this at the event by shifting his focus from individual coconut shell crafts to a more comprehensive coconut industry chain, showcasing the expo's broader evolution towards deep industrial integration, green innovation, and enhanced regional coordination.

Since its inception in 2013, the expo has expanded substantially in both size and scope. This year, with Sri Lanka designated as the country of honor, it attracted participation from 73 countries and international organizations, bringing together over 2,500 enterprises from South and Southeast Asia.

The number of pavilions at the expo has grown from six to 16, with nearly 70 percent now focused on professional sectors including manufacturing, green energy, the coffee industry, and traditional Chinese medicine. This expansion underscores the expo's role in promoting economic and trade cooperation between China and South Asian nations.

China's trade with South Asia reached nearly 200 billion U.S. dollars in 2024, doubling over the past decade, with an average annual growth rate of 6.3 percent according to China's Ministry of Commerce. China continues to serve as the largest trading partner for countries like Pakistan and Bangladesh, with a broad range of South Asian products gaining popularity among Chinese consumers.

To bolster South Asian exports, China has actively implemented measures such as launching joint research initiatives with Pakistan, promoting seafood exports from the Maldives, and forming trade groups with Bangladesh and Sri Lanka. These efforts reflect China's commitment to increasing imports of high-quality goods and services, particularly benefiting sectors such as agriculture and aquaculture.

In conjunction with traditional sectors, China and South Asian countries have begun to expand cooperation into emerging fields including new energy, electric vehicles, and digital technology. This collaborative approach allows for complementary advantages, with leaders underscoring the importance of knowledge sharing and investment in sustainable projects.

As global challenges such as unilateralism and protectionism persist, the expo symbolizes China's dedication to openness and its support of the multilateral trading system. Various officials have remarked on the expo's role in fostering shared opportunities and development among China, South Asia, and ASEAN countries.

In addition to the expo, China is forging stronger ties with South Asian nations through various agreements. The China-Maldives Free Trade Agreement, which came into effect this year, and ongoing negotiations to enhance the investment agreement with Bangladesh are notable examples.

China has also extended zero-tariff treatment to the least developed countries in South Asia, such as Nepal and Afghanistan, thus facilitating better market access. This policy aligns with China's broader commitment to high-level opening up, which not only seeks to boost its own economy but also to create opportunities for developing nations.

Despite the ongoing global economic challenges, China remains focused on reducing tariffs and engaging in fair trade practices through regional cooperation platforms. This strategy supports economic resilience and positions China as a reliable partner for nations like Sri Lanka navigating their own economic hurdles.

In essence, China's ongoing efforts to support free trade and connectivity are pivotal in enhancing stability and certainty within the fragile global economic landscape, indicating a shared vision for prosperity through mutual cooperation.

TRADEINTERNATIONAL RELATIONS

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