AMRO Report Identifies China as Primary Supply Hub in Evolving ASEAN+3 Production Network

AMRO’s 2026 outlook reveals China has replaced Japan as the primary hub in a denser, more interconnected ASEAN+3 production and trade architecture.

By: AXL Media

Published: Apr 8, 2026, 7:58 AM EDT

Source: Information for this report was sourced from CGTN

Evolution of Regional Production Networks

The Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) announced on Monday that China has solidified its position as the central supply hub for the ASEAN+3 region, which includes the ten ASEAN member states plus China, Japan, and South Korea. According to the "ASEAN+3 Regional Economic Outlook 2026," the last two decades have seen the regional production architecture evolve from a hub once dominated by Japan into a denser, more complex network with China at its core. This shift is attributed to China’s massive expansion in manufacturing capacity, sophisticated logistics infrastructure, and its role as a primary dealer in intermediate goods.

Interdependence and Demand Dynamics

The AMRO report emphasizes that current supply linkages represent a state of mutual interdependence rather than a one-way reliance. While China serves as the dominant supply and demand hub, other regional economies provide essential final demand for Chinese exports. On the demand side, the ASEAN+3 collective has surpassed the United States as a source of global final demand. Intraregional demand is now significantly more influential than it was twenty years ago, creating a self-sustaining economic ecosystem within East and Southeast Asia.

The Role of FDI and Domestic Value

Foreign Direct Investment (FDI) has acted as a primary stabilizer for these regional links. Rising intraregional FDI now complements established trade and production relationships, reinforcing the "China-anchored" architecture. During a release conference, AMRO Chief Economist He Dong noted that for these supply chains to remain resilient against external shocks, participating economies must focus on increasing "domestic-value-added" content. This strategy ensures that positive spillovers from foreign investments are captured by local economies, allowing regional firms to upgrade their capacity and move up the value chain.