The Chinese Factor Behind Southeast Asia's USD184 Billion E-Commerce Boom丨CBN x ASEAN Watch

Stephanie: Hello everyone, I'm Stephanie Li. Today's episode dives into how Chinese enterprises are reshaping Southeast Asia's e-commerce landscape.

Joining me is our ASEAN correspondent Sharon Hu, whose on-the-ground reporting brings fresh insights. Sharon, let's start with those staggering growth numbers you mentioned earlier.

Sharon: Absolutely, Stephanie. A report released by DBS Group of Singapore and Cube, a market research company, shows that from 2012 to 2024, the annual sales of e-commerce in Southeast Asia increased from USD4 billion in 2012 to USD184 billion in 2024—that's a 45 times jump! What's fascinating is how this mirrors China's own e-commerce boom a decade ago.

Stephanie: That's exactly what struck me. In Jakarta for example, street vendors were using Lazada's logistics for deliveries, just like how Taobao revolutionized rural China, but faster. How much of this do you attribute to Chinese companies' influence?

Sharon: A significant chunk. Take Lazada—Alibaba's investment didn't just pour money in, but instead they brought AI algorithms that personalize shopping. During last year's Double 12 shopping festival, 46% more users interacted with their AI tools. I’ve been talking with Liu Teng, who owns a cross-border e-commerce business in Xiamen that also provide relevant services, which I believe will give us an insider look at this trend.

Stephanie: Great! Small and medium sized enterprises are often the unsung heroes in these ecosystem shifts.

Sharon: Exactly. Liu entered Southeast Asia three years ago, mainly selling cosmetics, and what's interesting is their strategy. Instead of just listing products on platforms, they also have Chinese customers who want the full package—product plus setup. Basically every day, there’re Chinese merchants approach Liu for advice on how to expand business into Southeast Asia, from local policies and legal compliance, to on-the-ground operational strategies. Due to the robust demand, Liu established a 20-member local team in Malaysia, acting as a liaison between Chinese enterprises and local influencers to boost sales in live-streaming e-commerce, and assisting them to handle procedures such as registration, tax, and product certification.

Stephanie: That's brilliant. Let's talk infrastructure. As I've always said, logistics is the backbone—you can't have e-commerce without reliable delivery.

Sharon: And here's where the ecosystem support comes in. Many Chinese delivery giants, including Alibaba’s Cainiao, SF Express, ZTO, and Best Express, have set up overseas warehouses in Southeast Asia, which cuts delivery Tim es to under 48 hours. In the first half of this year, JD Logistics has added three new self-operated overseas warehouses in Malaysia and Vietnam.

Stephanie: Payment systems are another frontier. It reminds me of Alipay's early days in China, overcoming cash habits through convenience. How are they cracking that market?

Sharon: Through partnerships. For payments, they rely on global payment platforms such as the Hangzhou-based PingPong to handle cross-border transactions, which has been working with major e-commerce sites,  such as Amazon, TikTok Shop, Lazada and Shopee in Southeast Asia. And PingPong isn't replacing local payment apps—they're integrating with them, offering real-time currency exchange for sellers. 

Data shows that the penetration rate of e-payments in the region has exceeded 50%. In 2024, mobile payment based on QR code technology in Thailand accounted for approximately 55% of e-commerce transactions, and the proportions in Malaysia and Indonesia were even higher. It's a perfect example of how larger Chinese platforms are enabling smaller players to thrive.

Stephanie: That's the ripple effect we often miss. Big companies build the highways, and SMEs drive the traffic. What's their growth look like?

Sharon: Liu said they only started testing the waters of product exports in Southeast Asia three years ago. Back then, he could hardly imagine that one day, he would not only be able to create a top-selling product across all Malaysian e-commerce platforms, but also lead more Chinese enterprises to achieve one successful live-streaming sales feat after another on Southeast Asian platforms. They're now expanding into Indonesia, using TikTok Shop's live streams to demo their products. It's localization at every step.

Stephanie: And TikTok Shop is another game-changer. I remember when live-stream commerce took off in China, skeptics thought it wouldn't work elsewhere. But research finds 75% of Southeast Asian consumers are more willing to buy products out of online influencers’ recommendations. And I believe that's a cultural shift, not just a business model.

Sharon: You're spot on. TikTok creator studios in Southeast Asia are training local influencers in Chinese-style live-stream techniques: product demos, limited-time flash sales, even the way hosts interact with viewers. It's localization with Chinese DNA.

Stephanie: As we wrap up, let's look ahead. With projections hitting US$410 billion by 2030, this is just the beginning. What excites me most is how this collaboration is elevating the entire region's digital economy. It's not one-way—Southeast Asia's unique challenges are pushing Chinese firms to innovate, too.

Sharon: Well said. This isn't just Chinese companies reshaping Southeast Asia—it's a mutual evolution.

Stephanie: Thanks for sharing your insights, Sharon. And for our listeners, stay tuned as we explore more on the fascinating cultural and business exchange between China and ASEAN. Until next time!

Editor: LI Yanxia

Host: Stephanie LI

Reporter: Sharon Hu

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC