Asian foundations for trade integration continue to strengthen – Report

The foundations of Asian trade integration continue to strengthen, according to a report released Tuesday by the Boao Forum for Asia.

Intra-regional trade dependence increased from 56.3% in 2023 to 57.2% in 2024, as the region’s major economies increasingly gear their trade ties towards each other, said the report titled “Asian Economic Outlook and Integration Progress Annual Report 2026”.

Bilateral trade between major Asia-Pacific economies is generally gaining momentum, with the recovery of intra-ASEAN trade and two-way flows between ASEAN and China driving the recovery, the report noted.

China’s exports to emerging economies are growing faster than those to Japan and the Republic of Korea, strengthening its role as a regional hub supported by market size and a robust supply of intermediate goods.

According to the report, China’s relations with these partners are evolving beyond traditional “trading partner” dynamics towards a “community with a shared future”, characterized by increasingly intertwined industrial and value chains.

Fueled by growing investments in digital infrastructure, the demand dividend from Asia’s vast markets and deepening regional economic integration, the region is gradually transforming from a participant in global services trade into one of its key growth engines, the report said. Xinhua