At a Bangkok Bank-hosted seminar “Partners in Growth” on Friday to mark 25 years of China-Asean relations, Sarasin Viraphol, executive vice president of Charoen Pokphand Group said manufacturing cost was the most talked-about issue in China, not international relations.

As the Chinese economy slows to a “new normal” condition, promoting overseas investment and buoying domestic consumption carry more weight than export growth, he said.

Last year, foreign direct investment into China was US$120 billion (Bt4.2 trillion), lower than the $130-billion outward investment. Of the total outward FDI, Asean attracted only $7.8 billion or about 6 per cent.

“Given that tiny amount, the opportunities are huge. In the next five years, the investment could comfortably grow fivefold,” he said.

The CP executive is convinced that the agriculture and food industries stand to benefit greatly, thanks to the pace of China’s urbanisation and growing consumption.

Sarasin said Chinese food companies’ investments in Asean, mainly Malaysia and Thailand, could also elevate trust in their own products among Chinese consumers.

Meanwhile, Asean as a region would benefit from this trend just as trade with China seems to have peaked, while trade with the West has been hit by fragile recovery in demand.

China has been a major trading partner of Asean, with which it established an official dialogue in 1991. Bilateral trade grew by 18.5 per cent per annum from 1991 to 2015, from $7.96 billion to $472.16 billion. However, bilateral trade volume in 2015 dropped by 3 per cent from 2014, the first decline since 2008.

“If Asean is more friendly to China, the opportunities are huge for the regional business sector to supply more products to China over the next five years.”

He is optimistic that Chinese investment flows to Asean will rise, even to the Philippines and Vietnam, which are direct adversaries in the South China Sea dispute. Thailand could also attract more investment through the Eastern Economic Corridor.

Majid Ahmad Khan, president of the Malaysia China Friendship Association, sees opportunities in growing Chinese investment in Asean transport infrastructure – rail, roads and ports – over the next 25 years.

“The investment platforms exist but Asean is yet to identify the projects to take advantage of the ‘One Belt One Road’ initiative,” he said, adding that a number of discussions took place during the past three years without any progress at the bilateral or multilateral levels.

The region should also promote connectivity with China, particularly in maritime tourism.

“China and Asean are yet to see how to deepen the cooperation for shared prosperity and reduce conflicts,” he said. Asean understands China’s aspiration to play a leading role, but many countries want Beijing to be more forthcoming about how it intends to attain that power.

Song Junying, deputy director of the China Institute of International Studies’ Asia-Pacific Research Department, said the Asean region had yet to make full use of existing financial tools including the China-Asean Investment Cooperation Fund, China-Asean Maritime Cooperation Fund, Silk Road Fund and Asian Infrastructure Investment Fund.

He added that economic relations could be promoted through more dialogue to neutralise distrust following China’s rising influence in the region.

He admitted there was an increasing perception of a Chinese threat, but said that was due to incomplete and incorrect understanding of Chinese history. Negative perceptions also arise from fears of dependence on China, politically and economically, as well as reports of unruly behaviour of Chinese tourists.

Worsening this are negative reports on the South China Sea dispute.

“It’s a bright but winding road ahead for the next 25 years. It depends on how these relations will be leveraged,” Song said.