Building a China-ASEAN Digital Economy Community for Shared Prosperity

In today’s rapidly advancing digital age, the integration of digital economies between China and ASEAN nations holds transformative potential. The vision of a China-ASEAN Digital Economy Community is not just about technology or trade—it's about fostering closer regional bonds, building mutual prosperity, and ensuring that the benefits of digitalization reach every corner of society. This initiative is about creating an inclusive future where digital transformation is shared, sustainable, and mutually beneficial.

Reflecting on China's own journey, we have seen how digital technology has reshaped China's economy, bringing China from an internet follower to a leader in digital innovation. Starting with China's full internet integration in 1994, China has leveraged its vast population and market, generating unprecedented data volumes and building a robust digital infrastructure. These assets have fueled growth domestically and can now serve as foundational pillars in China's partnership with ASEAN. By developing a comprehensive digital community, China can leverage its strengths to foster a collaborative digital environment, facilitating innovation, trade, and connectivity across borders.

The China-ASEAN Digital Economy Community would build upon existing achievements in digital infrastructure. China's 5G networks and the Beidou navigation system, for instance, can provide ASEAN countries with high-speed, reliable connectivity and spatial integration. Through partnerships in infrastructure and technology transfer, ASEAN countries can further bridge the digital divide, bringing the advantages of digitalization to underserved areas.

Cross-border e-commerce is another cornerstone of this vision. During the pandemic, we witnessed the power of cross-border platforms when, for example, small businesses in developing nations were able to reach new markets. Through this digital community, we can facilitate trade for small and medium-sized enterprises (SMEs), especially those that lack the resources of larger firms. Cross-border payment systems, already integrated between China and ASEAN nations like Malaysia, are making it easier than ever for SMEs to engage in trade, regardless of location or size. Expanding this collaboration to integrate payment systems with all ASEAN countries will further strengthen economic resilience and ensure that China-ASEAN digital economy is inclusive.

Yet, the China-ASEAN Digital Economy Community is about more than infrastructure and trade. It's also about defining the standards for a fair and safe digital world. China has accumulated extensive experience in data privacy and cybersecurity, and it is well-positioned to share these practices with ASEAN. Collaboratively setting guidelines for secure digital transactions, data privacy, and cross-border data flows will provide the regulatory foundation needed to build a trusted digital ecosystem. And, with China’s early advancements in digital currency, there is an opportunity to reduce dependence on traditional systems, opening doors to financial freedom and integration across the region.

Building this community also offers a way to address the challenges of an increasingly digitalized world. Artificial intelligence, big data, and blockchain are reshaping the global landscape, but they also bring concerns—especially in areas like data security and ethical AI. By creating joint frameworks and sharing best practices, China and ASEAN countries can work together to manage these challenges while enhancing each nation’s capability to thrive in a digital-first future.

The China-ASEAN Digital Economy Community is a new chapter in China-ASEAN shared story. By aligning China-ASEAN visions, coordinating policies, and investing in mutual development, it will not only strengthen the region’s digital economy but also lay the foundation for a lasting partnership that promotes regional peace and prosperity. The future that we all envision is one where the digital economy serves as a bridge that connects, empowers, and uplifts all.

Article contributed by Koh King Kee, President of the Centre for New Inclusive Asia