China seeks deeper economic ties with South Asian Countries

China seeks deeper economic ties with South Asian Countries
Rivanshi Rakhrai
May 29, 2026, 03:55 A.M.

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Buy: Alibaba (BABA)

China pushing deeper South Asia ties and explicitly calling out e-commerce as an emerging industry. That points to more cross-border online retail, logistics enablement, and digital trade rails—areas where Alibaba’s platforms and commerce infrastructure can gain share as trade barriers fall and supply chains integrate. Momentum is supported by bilateral trade already topping $200B and rising 15.8% YTD.

Key Risk: South Asia e-commerce growth fails to translate into Alibaba revenue due to local competition, regulatory limits, or weak consumer adoption.

Buy: JD.com (JD)

Supply-chain resilience and “integrated supply chains” are the core theme, with transportation/power and new industries mentioned. JD’s strength is fast, reliable fulfillment and supply-chain execution—exactly what gets funded when China expands trade facilitation and lowers cross-border friction. If more Chinese goods flow into South Asia, JD’s logistics model is the direct beneficiary.

Key Risk: Cross-border logistics costs and customs frictions don’t actually improve, keeping volumes from scaling.

  • China calls for deeper trade cooperation with South Asian nations.
  • Bilateral trade exceeded $200 billion in 2025, officials said.
  • Beijing seeks stronger supply chain and emerging sector partnerships.

Chinese commerce ministry officials on Friday stressed the importance of expanding trade and economic cooperation with South Asian countries, highlighting growing uncertainty in the global and regional landscape.

Speaking at a press conference, Vice Commerce Minister Yan Dong said China and South Asian nations should strengthen cooperation across supply chains and explore opportunities in new industries.

He said closer collaboration is increasingly important, "especially against the backdrop of the current turbulent and uncertain international and regional situation."

The remarks come as China seeks to deepen economic engagement with countries across South Asia and promote greater regional trade integration.

Focus shifts to emerging industries

Yan said cooperation between China and South Asian countries should extend beyond traditional sectors such as infrastructure, transportation, and power.

According to him, both sides should deepen supply chain cooperation while expanding partnerships in emerging industries, including e-commerce and biomedicine.

He said these sectors could provide new opportunities for growth and help strengthen economic links between China and the region.

Expanding cooperation in these areas would also support efforts to build more resilient and integrated supply chains, he added.

The comments suggest Beijing is looking to broaden the scope of its economic partnerships in South Asia by encouraging collaboration in industries that are becoming increasingly important to regional development and trade.

Trade surpasses $200 billion

Yan highlighted the growth in trade between China and South Asian countries, noting that bilateral trade exceeded $200 billion in 2025.

He also said trade continued to expand in 2026.

During the first four months of the year, trade between China and South Asian nations increased 15.8% compared with the same period a year earlier.

The figures indicate continued momentum in commercial relations between China and countries across the region.

According to Yan, China is now the largest trading partner of Pakistan, Bangladesh, Sri Lanka, and the Maldives.

The position reflects China's growing role in regional trade and its expanding economic relationships with several South Asian economies.

Beijing seeks easier trade and lower costs

Yan said China plans to further improve trade liberalisation and facilitation through a range of bilateral mechanisms and cooperation platforms.

These efforts include trade working groups, bilateral arrangements, and free trade agreements designed to reduce barriers to commerce and improve business conditions.

According to Yan, such measures would help lower costs for companies and make it easier for businesses to conduct cross-border trade.

He said Beijing would continue working with South Asian partners to strengthen economic cooperation and improve trade efficiency through existing and future frameworks.

The vice commerce minister's comments underscore China's intention to deepen economic ties with South Asian countries through stronger supply chain links, expanded cooperation in emerging industries, and measures aimed at facilitating trade and investment across the region.