BOAO, Hainan - Global foreign investments have increased their reliance on Asian economies amid fluctuations, and China and the Association of Southeast Asian Nations (ASEAN) are the most appealing economies in Asia, according to a report released by the Boao Forum for Asia Tuesday.
The inward and outward foreign direct investment (FDI) dependence of Asian economies on the region itself reached 49.15 percent in 2023, the forum's Asian Economic Outlook and Integration Progress Annual Report 2025 said.
From the perspective of two-way dependence on FDI in Asia, China remained the economy most reliant on Asian FDI flows, followed by Indonesia, with their dependence rates exceeding 80 percent and 75 percent respectively.
The report also pointed out that China continues to be the center of global manufacturing value chains.
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It noted that since 2017, global trade in intermediate goods has been more reliant on China than on North America. In 2023, global dependence on China for intermediate goods stood at 16 percent, compared with 15 percent for North America.
The trade frictions provoked by the United States in 2018 have not elevated its position in the global value chains of manufacturing, the report added.
Emerging green tech
Boosted by strong industrial capabilities and policy support, Asia is rapidly advancing in emerging green technologies and positioning itself as a potential leader in advanced battery materials, biodegradable plastics, among others, according to the report.
Highlighting the region's progress in renewable energy, the report notes that China now sources 85 percent of its new energy capacity from renewables, while Indonesia and Singapore are leading efforts in carbon capture and storage.
China, Japan and the Republic of Korea dominate the global supply chain for lithium battery technology, a crucial driver of transport electrification, the report highlights.
Meanwhile, China is at the forefront of Asia's expanding green hydrogen industry, with the region accounting for nearly 70 percent of the world's hydrogen electrolyzer capacity.
Asia's largest emitters, including China, India, Indonesia, Japan and Saudi Arabia, have set ambitious climate targets, according to the report.
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For instance, most of ASEAN economies have developed comprehensive national climate action strategies and action plans to implement their Nationally Determined Contributions and National Adaptation Plans.
Despite significant progress, the report points out that while some countries have demonstrated a strong commitment to sustainability, others still have a long way to go.
Asia's role in mitigating climate change is critical as it is home to over half of the world's population, generates about half of the global GDP and accounts for more than half of global CO2 emissions.
