China-ASEAN agricultural cooperation deepens, agricultural trade volume increasing significantly

Date:05-24-2024

Cooperation between China and ASEAN is getting closer and closer in this important agricultural field, leading to a significant increase in the trade volume of agricultural products between the two sides. 

According to data released by the General Administration of Customs of China, bilateral trade between China and ASEAN in 2023 climbed to RMB6.41 trillion yuan, and ASEAN remained China's largest trading partner. 

Agricultural trade is particularly active, with Thailand, Indonesia, and Vietnam among ASEAN countries becoming China’s major agricultural trade partners. In particular, the total agricultural trade between Thailand and China has reached a new high of US$17.888 billion. 

More ASEAN agricultural products entering Chinese market

With the deepening of agricultural cooperation between China and ASEAN, many agricultural products from ASEAN countries are entering the Chinese market. China has  established five overseas agricultural experiment stations in Laos, Vietnam, Cambodia, Indonesia, and Myanmar. The cooperation has promoted the in-depth development of agricultural cooperation between the parties and brought tangible benefits to the public of all countries.

Statistics from the Chinese Ministry of Agriculture and Rural Affairs revealed the importance of ASEAN in China’s agricultural trading. ASEAN countries are three of China’s prime agricultural trade partners. 

ASEAN is not only China’s largest partner in agricultural trading but also an important destination for Chinese agricultural investment. In addition, the cooperation between ASEAN and China extends to agricultural technology, poverty alleviation, and rural development, with fruitful achievements being made.

RCEP benefit shows up, providing impetus into the cooperation

The Regional Comprehensive Economic Partnership (RCEP) came into effect on January 1, 2022, and has provided solid impetus to China-ASEAN agricultural cooperation. Reducing trade costs and expanding export markets have extensively promoted regional economic and trade cooperation, revitalizing the agricultural cooperation between China and ASEAN. 

In 2023, China’s trade volume with RCEP member countries, including ASEAN countries, reached RMB12.6 trillion yuan, which included the prominent volume in agricultural trading. In the first 11 months, China imported a total of RMB46.61 billion yuan-worth of fresh durian from Thailand, Vietnam, and other ASEAN countries, which is 1.7 times the amount imported before the effectiveness of RCEP.

China and ASEAN have entered into more than 40 bilateral agricultural cooperation agreements, established eight bilateral agricultural cooperation mechanisms, and implemented more than 300 agricultural technical cooperation programs covering a wide range of business fields such as crop planting, animal disease prevention, and control as well as standardized production of fruits and vegetables. 

The ASEAN-China FTA (ACFTA) 3.0 Upgrade Negotiation has been progressing steadily, indicating a more promising broad prospect for cooperation between the two sides. 

Digital agriculture and green agriculture becoming new fields of cooperation

Digital agriculture and green agriculture are becoming new drivers for promoting agricultural cooperation between China and ASEAN. With the introduction of digital agriculture technology, ASEAN’s agricultural product mix has become more diverse and competitive. 

The vigorous development of cross-border e-commerce has made agricultural products from ASEAN countries, such as coffee from Malaysia, pineapples from the Philippines, and special snacks from Myanmar, very popular on Chinese e-commerce platforms.

Cooperation between China and ASEAN is constantly strengthened in the fields of smart agriculture and digital village development, which provides new impetus to the agricultural modernization of both sides. 

Looking ahead, with the continuous release of RCEP policy incentives and the rise of cross-border e-commerce of agricultural products, China-ASEAN agricultural cooperation should open up more spaces for collaboration in digital agriculture, smart agriculture, and green agriculture, which will jointly promote the green, cyclic and sustainable development of the regional agriculture.

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