How Chinese firms can avoid a Europe-style backlash in Southeast Asia
China’s technology companies face a question that no pricing strategy can answer: what will their success do to their trading partners? In Europe, that question has become politically urgent. European Commission President Ursula von der Leyen warns of a “second China shock”, linking persistent trade imbalances to the erosion of Europe’s industrial base. Europe’s dispute carries a broader warning:…
Chinese technology firms must navigate a delicate balance when entering Southeast Asian markets. While low-cost products may attract attention, they risk accusations of "technological dumping" if local industries struggle to compete. To avoid this, Chinese firms must demonstrate that their technology fosters higher-value production, empowers local design and adaptation, and contributes to local hiring and investment.
Additionally, the gains from AI implementations should be shared across the region, leading to better jobs, rising incomes, and more accessible services. The Asean-China Free Trade Area 3.0 upgrade protocol offers an opportunity for deeper cooperation in the digital economy and supply-chain connectivity. Successful deployment of Chinese AI technology should be measured by the emergence of local firms that can become suppliers, partners, and eventually competitors to Chinese companies.
In essence, the key to avoiding a Europe-style backlash lies in visible local prosperity: increased productivity, local innovation, and positive impacts on ordinary people's livelihoods.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
