China looks to ASEAN to help boost digital sector
China is set for closer collaboration on digital projects with ASEAN member countries, with new frameworks and action plans aimed at further strengthening digital infrastructure, promoting cloud computing and enhancing artificial intelligence governance.
Xu Chaofeng, director-general of the Ministry of Industry and Information Technology’s Department of International Cooperation, the country’s top industry regulator, said that the country aims to develop a five-year action plan with ASEAN on building a sustainable and inclusive digital ecosystem.
“The plan will prioritize digital, intelligent and green transformation, with the aim of strengthening policy communication, deepening development consensus and fostering a new digital industry ecosystem,” Xu said.
The comments follow the 5th ASEAN Digital Ministers’ Meeting and the second China-Thailand Ministerial Dialogue on Digital Economy Cooperation, which took place recently. Thailand is also an ASEAN member country.
Zhang Yunming, vice-minister of industry and information technology, who led a delegation to Thailand, outlined the latest digital developments and policies, as well as future co-operation plans between China and Thailand.
He said digital infrastructure remains a cornerstone of the partnership. “China has already made significant strides in enhancing ASEAN’s digital backbone, with over 30 cross-border terrestrial optical cables linking China with various ASEAN markets,” Zhang said.
To advance the collaboration, China is pushing for the establishment of an Asian undersea cable association, alongside a computing power interconnection partnership plan.
And Xu Chaofeng commented: “Digital infrastructure is the foundation for digital development and is essential in bridging the digital divide. More efforts will be made to enhance cooperation with ASEAN members in areas such as 5G, cloud computing, data centres and the internet of things.”
He said that AI was another key area for deeper co-operation between China and ASEAN, and the two sides are also committed to advancing AI technology, industry standards and governance to ensure fair and equitable development across all member states.
To facilitate the collaboration, China and ASEAN members plan to establish a China-ASEAN artificial intelligence cooperation centre, which will host AI projects and drive digital transformation initiatives. “We must ensure that AI development and governance are based on equal rights, opportunities and rules for every nation,” Xu said.
While digital infrastructure and technological advances are crucial, the collaboration also extends to enhancing digital skills and building talent in the region, he added.
Yu Xiaohui, president of the China Academy of Information and Communications Technology, said: “China’s achievements in digital innovation, particularly in 5G and AI, complement ASEAN’s unique needs in industries such as tourism and agriculture, paving the way for broader international cooperation.”
The ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
China’s economy likely to grow around 5% this year and beyond
China is firmly entrenched in a ‘medium growth’ phase as its economy transitions into a more mature state, and its GDP will likely grow around 5% this year and beyond, according to management consultancy McKinsey China.
Despite facing challenges both at home and abroad, including geopolitical tensions and a downturn in the housing sector, McKinsey China chairman Joe Ngai said he was optimistic about China’s long-term economic prospects, emphasizing the country’s continuing role as a key driver of global growth.
“I think that China is solidly in a medium growth phase as we are transitioning into a more mature economy,” Ngai said in a recent interview with China Daily.
Ngai added that China’s growth remains robust relative to the rest of the world, accounting for approximately one-third of global GDP growth.
Ngai also expressed optimism about the country’s emerging technological leadership in fields like electric vehicles, solar energy and artificial intelligence.
“In many technologies right now, China is very competitive globally. We are growing in areas like electric vehicles, solar panels, AI and robotics, and these are areas where we see a lot of upsides.”
A new report released by McKinsey Global Institute has identified 18 potential fast-growing sectors of the future, ranging from AI software and services to robotics that could reshape the global economy.
“The good news is China is very active in those 18 sectors. China actually has quite a number of very good company investments and progress in these areas,” Ngai said.
In addition to technological advancements, Ngai emphasized that China’s economic future will be shaped by its ability to boost domestic consumption, which he described as “underdeveloped”, but possessing significant potential. “Consumption demand is actually in the bank,” Ngai said. “Chinese households have saved up in recent years, creating a reservoir of demand waiting to be unleashed.”