Scene of the APEC Study Centers Consortium Youth Scholars Forum on May 7, 2026 in Shenzhen.
As the APEC Study Centers Consortium Youth Scholars Forum concluded last week in Shenzhen, promising young scholars from 13 APEC economies gathered to share their views on how to embrace a more sustainable and inclusive Asia-Pacific region.
In an exclusive interview with South, Peh Ko Hsu, a research officer at the Singapore-based ISEAS-Yusof Ishak Institute whose work focuses on ASEAN countries, said China and ASEAN could use the APEC platform to advance cooperation on green transition and the digital economy, noting that seven ASEAN members are also APEC member economies.
Peh Ko Hsu, research officer at the ISEAS-Yusof Ishak Institute based in Singapore, in Shenzhen on May 7, 2026.
China can work with ASEAN on green transition through industrialization and investment.
"As a member of APEC, China is tremendous and helps the Asia-Pacific region by sharing its industrialization," Peh noted.
He explained that China did not industrialize in isolation. It has built the world's most comprehensive industrial economy, now accounting for roughly 30% of global manufacturing output and spanning every major sector, from mineral refining to green energy equipment, including electric vehicles, and advanced manufacturing.
"This brings lots of opportunities for ASEAN to grow," Peh stated. "ASEAN is plugging into China's manufacturing supply chain to produce specialized inputs."
With China producing more than 80% of the world's solar panels and about 60% of its wind turbines, according to Climate Action Tracker, the country has helped many countries transition to green energy by scaling up manufacturing capacity. As a result, renewable energy products have become more affordable and accessible.
In July last year, Chinese firm Yongfu Group and Indonesian company PT Sumber Energi Surya Morowali officially signed a contract for a 200MWac mountain photovoltaic and 80MW/80MWh energy storage system project in the Morowali Industrial Park in Indonesia.
As Indonesia's largest integrated photovoltaic and energy storage project to date, it is expected to reduce carbon dioxide emissions by approximately 280,000 tons per year. This will contribute to Indonesia's goal of achieving "Net Zero Emissions 2060".
China has also invested heavily in ASEAN countries, Peh noted. In 2023 alone, a third of manufacturing investment in Southeast Asia came from China. The average annual value of Chinese greenfield foreign direct investment in manufacturing in ASEAN doubled from US$6.1 billion from 2016 to 2019 to US$12.9 billion from 2020 to 2023.
TheASEAN-China Digital Economy Development and Cooperation Forum 2021is held on July 16, 2021 in Wuhan. (CFP Photo)
ASEAN, China can collaborate on digital economy via DEFA and ASEAN-China FTA 3.0.
"Digital governance is fragmented in APEC economies," Peh said.
Citing the Digital Economy Framework Agreement (DEFA), which ASEAN countries concluded in October 2025 and are expected to sign this November, Peh stated that ASEAN has integrated the data economy and data flows into a regulatory framework.
"This can create an interoperable regulatory mode. It can become a blueprint for APEC to integrate its AI agenda and make data economy more coherent," he added.
Regarding China and ASEAN, Peh noted that the signing of ASEAN-China FTA 3.0 last year covered this area, especially digital trade. China can use this trade agreement to help integrate ASEAN's digital market into a shared space.
"This will create a digital market for over 2 billion people, which has a tremendous growth effect for ASEAN, China and APEC. This digital framework can ensure future digital market can grow even more compared to the current," he underlined.
Additionally, given the different levels and scales of APEC economies, Peh proposed that China can leverage its APEC presidency this year to help less digitally advanced economies build their AI capacity. "This is aligned with China and APEC's AI agenda, which aims to be more inclusive in the region."
A streetscape themed around APEC China Year in Shenzhen on April 10, 2026. (CFP Photo)
APEC economies should adhere to three principles to safeguard regional growth.
Global economic development is facing turbulent headwinds amid an evolving geopolitical landscape, with the Middle East and Europe beset by wars and conflicts. The Asia-Pacific region, however, has remained relatively anchored.
Against this backdrop, Peh underscored three principles that APEC economies should follow to achieve regional growth.
The first is to pursue bilateral negotiations without undermining the wider region. He cited ASEAN countries' one-on-one negotiations with the US over tariffs as an example, noting that ASEAN countries need to ensure individual negotiations do not undermine the region's competitiveness.
"APEC provides a platform to make sure that some negotiations do not affect the broader region and to prevent fragmentation in the architecture," he added.
The second is to advance more regional free trade agreements among APEC economies. "Whenever an external shock occurs, there is a buffer for it," Peh noted.
According to him, regional free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have the same goal: ensuring that no signatory party relies solely on one trade partner and that all can diversify their trade.
The third is to reinvigorate multilateralism in the Asia-Pacific region. Peh noted that multilateralism is declining worldwide at present, which is more damaging than any tariff.
He outlined the three pillars of the APEC Putrajaya Vision 2040: Trade and Investment, Innovation and Digitalisation, and Strong, Balanced, Secure, Sustainable and Inclusive Growth.
"This shows that APEC, as a mechanism, ensures this cooperation can continue, even when the political tension is running high," he added.
Reporter | Zhang Ruijun
Photo | Zhang Ruijun
