Home>News & Insights>Insights>ISI Markets Confirm ASEAN is now the Global Hub for China’s Rerouted TradeISI Markets Confirm ASEAN is now the Global Hub for China’s Rerouted Trade CEIC Insights Anthony Hawley and Noah Hearle 16.12.2025 3 min read In this article ASEAN is now the main hub for rerouted global trade. FDI has shifted toward Thailand, Malaysia and Indonesia. ASEAN bridges China–U.S. trade flows. Manufacturing is upgrading into sectors like EVs. New analysis released today by ISI Markets, the global market intelligence provider known for its unique depth and breadth of coverage of emerging markets, confirms that the Association of Southeast Asian Nations (ASEAN) has rapidly taken centre stage as the primary route for global trade flows seeking alternatives to traditional channels. The data strongly indicates that major economies, notably China, are actively engaging in supply chain reconfiguration, cementing ASEAN’s role as the definitive “connector economy”. The insights from ISI Markets were based on comprehensive data generated by its newly launched CEIC ASEAN premium database. Despite its scale, ASEAN has long posed analytical challenges due to the fragmented nature of its data, spanning ten economies with differing languages, currencies, and statistical systems. CEIC ASEAN Premium addresses this gap by providing a unified, high-frequency, subnational database that integrates official, local-language, and alternative data sources. The platform enables economists, investors, and strategists to monitor and model ASEAN’s economies with unprecedented comparability and granularity. Key Themes FDI Flow Acceleration Current trade analysis confirms Thailand, Malaysia, and Indonesia are now established as the primary hubs for rerouted manufacturing capital (FDI), showing the most notable shifts in import trends globally following the start of diversification efforts in 2017. Active Trade Bridging ASEAN actively functions as the essential processing hub, demonstrated by the strong positive correlation between China’s exports to ASEAN and US imports from ASEAN since 2018, a quantifiable link that continues to maintain global supply chain continuity. Trade Upgrading Vietnam’s expanding trade surplus with the US coinciding with a widening trade deficit with China demonstrates the classic pattern of trade diversion. This is reinforced by the rapid increase in China’s import dependency on Vietnam for electrical equipment (HS 85 category). Future Manufacturing Hub Thailand is accelerating its structural pivot, evidenced by the growth of domestic Electric Vehicle (EV) production capacity from 1% to 7% in just eighteen months, underlining ASEAN’s role in next-generation manufacturing. The analysis shows that geopolitical and tariff pressures are driving a strategic pivot, compelling global companies to establish resilient trade channels outside of existing bilateral routes. Accumulated direct investment abroad by China since 2017 correlates with significant shifts in import trends across key ASEAN markets and has only intensified throughout 2025. Specifically, Thailand, Malaysia, and Indonesia, alongside Mexico are experiencing the most notable trend changes, indicating they are now crucial recipients of manufacturing and capital flows aimed at diversification. “Leveraging ASEAN’s scale and trade frameworks is a strategic imperative to ensure continued access to global markets. For investors, this translates into secular growth opportunities across the region’s manufacturing, digital, and energy sectors. CEIC ASEAN Premium is the only intelligence product in the region that provides the breadth and depth necessary to uncover these dynamics.” Steve Pulley, CEO ISI Markets The data confirms that as global firms operationalise diversification strategies, ASEAN’s commitment to internal integration and its immense market scale of over 650 million people, position it perfectly to be the world’s essential economic bridge. Enquiries Gina White Group Chief Marketing Officer, ISI Markets gwhite@isimarkets.com +44 (0)7522 268857 Image caption lorem ipsum dolor sit amet About CEIC ASEAN Premium Developed by ISI Markets’, CEIC ASEAN Premium Database harmonises macroeconomic, trade, and sectoral data from more than 400 local and international sources. CEIC’s regional analyst teams, operating for over three decades across five ASEAN offices, ensure data consistency and accuracy across the bloc’s diverse economies. About ISI Markets ISI Markets is the leading global market intelligence company differentiated by the unique depth and breadth of emerging markets content. Comprised of four products: CEIC, EMIS, REDD, and EPFR, sharing a common purpose to illuminate opportunity in markets where information can be hard to obtain or trust. We leverage deep local knowledge, well-established networks and leading-edge software and advanced analytics to deliver intelligence that informs our clients’ most important investment, strategic and risk decisions. Tags ASEANChinese MainlandRecent Posts Flows tilting towards fixed income EPFR 28.05.2026 Insights, Publications With headline inflation in the Eurozone and US hitting 31 and 35-month highs, respectively, investors found themselves revisiting the discounts Read More May 2026 | Top M&A Deals EMIS 26.05.2026 Insights Explore top M&A Deals in Emerging Markets. The month’s top 5 deals per region, ranked by deal value. 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