From factory floors to green growth

When ASEAN and China established dialogue relations in 1991, their ties were cautious but steadily expanding. Thirty-five years later, the partnership has become one of Asia's most consequential economic relationships.

The next stage should be measured not only by trade flows or the number of agreements signed, but by its capacity to advance green development and strengthen small and medium-sized enterprises. These two priorities will determine the region's competitiveness, resilience and inclusiveness.

That shift reflects changing regional needs. The China-ASEAN Free Trade Area and the Regional Comprehensive Economic Partnership have already created a strong foundation for integration.

The challenge now is to improve the quality of growth. China and ASEAN should use their partnership to build cleaner industries, support local firms and create more resilient supply chains.

Green development should therefore sit at the center of cooperation. Climate change, extreme weather, energy insecurity and resource constraints are already affecting production, logistics and food systems across the region.

For many ASEAN economies, sustainability is no longer a distant ambition but an immediate economic necessity. A partnership focused on cleaner energy and lower-carbon industry will matter more to the region's future than one centered only on conventional trade expansion.

China and ASEAN are well-placed to lead this transition together. China has developed major strengths in renewable energy, electric vehicles, battery manufacturing and clean infrastructure. ASEAN offers strong solar potential, rising energy demand, rich biodiversity and a pressing need for sustainable industrialization.

These complementary strengths open opportunities in solar and wind power, energy storage, green finance, low-carbon transport and climate-smart agriculture.

The aim should not be to add a few green projects to an unchanged model. It should be to reshape the model around sustainability.

A solar manufacturing base in Thailand, an electric bus network in Indonesia, a battery recycling facility in Malaysia or a smart-grid pilot in Vietnam would do more than reduce emissions. They would create jobs, attract investment, improve energy security and help local industries move up the value chain. Green development is not a brake on growth; it is a source of new growth.

If green growth is the destination, SMEs must be the engine. They account for a vast majority of businesses in ASEAN and play a similarly important role in China.

They hire locally, adapt quickly and connect larger industries to communities. Yet they are also the most vulnerable to transition costs. New environmental standards, higher energy prices and the need to adopt cleaner technologies can place heavy pressure on smaller firms.

If China-ASEAN cooperation is to be future-oriented, it must help SMEs join the green economy rather than fall behind. That requires practical support: green financing for energy-efficient equipment and cleaner production, technical assistance to meet sustainability standards, and joint training in carbon accounting, waste reduction, circular economy practices and digital resource management.

Cross-border platforms can connect SMEs with larger firms, research institutions and investors working on clean technology.

Digital transformation can reinforce this agenda if it is used to support smaller firms. Artificial intelligence, cloud computing and smart manufacturing can help SMEs reduce waste, improve efficiency and manage supply chains more effectively.

Digital platforms can also make it easier to access green certification, compare energy options, monitor emissions and reach environmentally conscious consumers. But technology alone is not enough.

SMEs need affordable access, practical training and supportive regulation if digital tools are to translate into real competitiveness.

Green development also offers a strong framework for cooperation in agriculture, food security and rural vitalization. Many ASEAN economies still depend heavily on agriculture, forestry and fisheries, all of which are exposed to climate risk.

China's experiences in precision agriculture, water-saving irrigation, seed innovation and rural e-commerce can provide useful lessons. ASEAN's ecological diversity and local knowledge can, in turn, support more sustainable production and conservation. Cooperation in this area can protect livelihoods while improving productivity and environmental outcomes.

The broader strategic value of this agenda is resilience. The external environment is more uncertain than it was three decades ago. Geopolitical rivalry, trade restrictions and technological fragmentation complicate regional planning.

The green transition is also uneven: some countries have advanced renewable industries, while others still face infrastructure gaps; some SMEs are ready to adopt cleaner technologies, while others lack financing and information.

These differences are not reasons to slow cooperation. They are reasons to deepen it. The key is ensuring that the gains from green growth are widely shared. If sustainability becomes the preserve of large firms and advanced economies, it will widen inequality.

If SMEs are given the tools to adapt and compete, the transition can become a powerful engine of inclusive development. The most effective cooperation will therefore be practical: joint green standards, SME support centers, cross-border incubators, clean technology partnerships, vocational training and expanded educational exchanges.

This approach fits the way China-ASEAN relations have matured: through pragmatism, consultation and incremental progress. Its greatest achievement has been the confidence it has built among governments, businesses, universities and communities. That confidence now needs a new purpose: building a regional economy that is cleaner, more innovative and more inclusive.

The next 35 years of China-ASEAN relations should be defined by two linked goals: green development and SME empowerment. Together, they offer the clearest path to stronger growth, greater resilience and broader prosperity.

If the first 35 years were about building trust and expanding exchange, the next 35 should be about using that trust to create a greener and fairer regional future.

The author served as political secretary to former Malaysian prime minister Najib Razak from 2009 to 2011 and is currently a senior fellow at the Singapore Institute of International Affairs.

The views don't necessarily reflect those of China Daily.

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