Arabfields, Farah Benali, Economic Correspondent, China — China’s drive to develop advanced manufacturing, artificial intelligence and green technologies could create fresh opportunities for economies across the Asia-Pacific region, particularly in Southeast Asia, as governments seek to improve productivity and attract investment.
Alfred Schipke, director of the East Asian Institute at the National University of Singapore, said Chinese investment overseas could help other economies raise production efficiency by introducing technologies directly into industrial processes. Speaking to CGTN ahead of the Asia-Pacific Economic Cooperation (APEC) meeting in November, he highlighted the potential benefits for both Chinese companies and their regional partners.
The concept of “new quality productive forces”, promoted by Beijing, centres on technological innovation, industrial upgrading and more efficient use of resources. It encompasses areas such as artificial intelligence, robotics, advanced manufacturing, digital infrastructure and clean energy.
For businesses across Southeast Asia, the potential impact extends beyond the purchase of new equipment. Factories adopting automated production systems, digital management tools and advanced machinery could increase output, reduce waste and improve product quality. Local suppliers may also benefit as international investors establish production networks and seek regional partners.
The implications are significant for economies attempting to move into higher-value manufacturing. Countries such as Vietnam, Indonesia, Thailand and Malaysia have developed industrial bases that could support closer cooperation with Chinese technology companies. However, the scale of the benefits will depend on workforce skills, infrastructure, financing and the ability of domestic businesses to absorb new technologies.
China’s policy direction reinforces this trend. Guidelines issued by the Chinese government in October 2026 identified technological breakthroughs, the integration of research with industrial production, digital transformation and green development as priorities. The measures also emphasised the application of artificial intelligence to traditional industries.
For Chinese manufacturers, overseas investment offers a way to extend the reach of their technologies while building relationships with new markets. For host countries, the opportunity lies in attracting capital and expertise without remaining dependent on imported equipment alone.
The challenge is ensuring that investment generates lasting domestic economic benefits. Technology transfers, training programmes and partnerships with local suppliers can help workers and businesses develop new capabilities. Without such links, the gains may remain concentrated among foreign investors and a limited number of large companies.
The transition also carries risks. Automation can change demand for certain occupations, while smaller firms may struggle to finance upgrades or compete with more technologically advanced rivals. Governments will need to invest in vocational education, digital infrastructure and business support to ensure that productivity gains are more widely shared.
China’s economic strategy is increasingly focused on advanced industries as a source of growth. Official guidelines published in October set out measures to strengthen scientific research, support emerging sectors and expand the use of digital and intelligent technologies. At the same time, authorities have warned against excessive investment and speculative expansion in high-technology industries.
These priorities are likely to shape regional investment decisions in 2027, particularly in manufacturing, artificial intelligence applications, renewable energy and industrial automation. Economies with reliable infrastructure, skilled workers and clear investment rules may be better positioned to attract projects and integrate into regional supply chains.
The November APEC meeting is expected to provide an opportunity for regional leaders and businesses to discuss economic cooperation, investment and technological development. Yet the longer-term results will depend less on declarations than on whether proposed partnerships lead to operating facilities, stronger local supply networks and measurable improvements in productivity.
For Asia-Pacific economies, China’s technology expansion presents both an opportunity and a policy challenge. The central question will be whether cross-border investment can help local industries become more competitive while building domestic expertise, creating skilled employment and supporting sustainable economic growth.
