Dialogue with UOB China MD Xin Tao: Chinese Enterprises’ ASEAN Expansion Enters the “Era of Integration”

March 26, Zhongguancun Development Group, China Galaxy Securities, and United Overseas Bank jointly hosted the "ASEAN Innovation Cooperation Development Forum" in Beijing. This forum, which focuses on frontier fields such as digital economy, green technology, and biomedicine, is not simply an investment promotion event, but rather a microcosm of the reshaping of Chinese companies’ southward expansion. In recent years, amidst the upheaval of global supply chains, Chinese enterprises venturing into ASEAN have undergone a complete self-iteration, evolving from “product export” to “capacity transfer” and then to “ecosystem co-building”—this evolutionary curve is becoming increasingly clear. In the early days, going abroad was mostly a passive move to bypass trade barriers or simply a pursuit of low-cost production factors; However, as de-globalization undercurrents and geopolitical games intertwine today, the steps of Chinese enterprises moving south have long surpassed pure output of capacity. Companies are no longer content with setting up assembly lines for certificates of origin—they are relocating R&D centers, upstream and downstream support, and even regional operation headquarters. The form of “going abroad” is shifting from light asset, single-unit trial to systematic, heavy asset, long-term layout. As business maps cross borders and grow larger, the resilience and efficiency of capital flows becomes the trump card that decides whether an enterprise can truly take root in a foreign land. In unfamiliar regulatory environments and fluctuating currency markets, the role of the transnational financial system has become the fundamental infrastructure connecting domestic parent companies and overseas entities. Whether building cross-border capital pools to enhance global allocation efficiency, using derivatives to hedge risks between home and local currencies, or helping companies set up regional treasury centers, the depth of financial services directly constitutes a hidden moat for multinational enterprises. It is precisely because of the evolution of this business narrative and the pain points of capital flow that United Overseas Bank and Zhongguancun International officially launched the “UOB Smart Chain ASEAN Express” project at this forum, aiming to build a more synergistic cross-border innovation ecosystem. Regarding the practical difficulties Chinese enterprises face deepening in ASEAN, Wallstreetcn conducted an exclusive interview with Xin Tao, Managing Director and Head of Wholesale Banking and Branch Manager of UOB Beijing. In Xin Tao’s view, the core proposition of going abroad has thoroughly evolved from the physical level of “going out” to a systematic level of “integrating in”. The following is the interview transcript: Wallstreetcn: Amidst the current wave of industrial chain reshaping, which hot sectors has UOB observed Chinese enterprises focusing on when going to ASEAN? What are the main pain points in implementation? Xin Tao: The reshaping of industrial chains in ASEAN is mainly reflected in four core growth drivers: First, AI and digital economy tracks as well as high-tech innovation; second, new energy vehicles and smart manufacturing; third, green energy transition; fourth, low-carbon infrastructure construction. The pain points are concentrated at both ends: first, external market challenges, mainly from geopolitical and tariff policy uncertainties bringing potential market risks; second, native integration risks for enterprises. At present, “going out” is no longer difficult for Chinese enterprises; the bigger challenge is “integrating in”. Wallstreetcn: Could you elaborate, what are the specific aspects of moving from “going out” to “integrating in”? Xin Tao: It mainly manifests in three dimensions of integration. First is industrial chain integration—now Chinese companies tend to venture abroad as a whole chain rather than single businesses as before; second is integration of products and local market, focusing on jointly establishing the credibility of "Made in China"; third is the reshaping of the investment and financing landscape—going abroad inevitably involves capital flow transfer. For Chinese companies aiming for sustainable growth, beyond technical advantages, it is crucial to achieve localized integration through efficient internal capital management. Wallstreetcn: Faced with these complex cross-border challenges, what solutions does UOB offer? Xin Tao: We break through mainly through four dimensions. First, relying on professional industry expert teams to provide tailored comprehensive financial solutions for different sectors; second, utilizing our network layout, including interfacing with CIPS (China’s RMB Cross-Border Payment System) and covering nearly 500 outlets in Southeast Asia; third, service advantages—we have established "China Desk" in major ASEAN countries, offering one-stop, single-contact services with Chinese-speaking staff familiar with local markets; fourth is our “secret weapon”—the Foreign Direct Investment (FDI) Consulting Department. Wallstreetcn: In this multilateral model evolution, RMB internationalization is an important variable. Based on actual settlement volumes, how do ASEAN enterprises currently accept RMB? Can you share a specific hedging case? Xin Tao: In 2018, there were relatively few customers willing to settle in RMB, but now quite a number have matured in its use, and others are open to exploring it. Data show that RMB’s cross-border transaction volume in ASEAN has exceeded 30% of total goods trade, fully indicating RMB’s key position in regional trade. Take the durian import business with Malaysia as an example. Previously, domestic importers and local farmers could only settle in US dollars, and farmers were less willing to accept RMB. Later, we established a direct payment system between RMB and Malaysian Ringgit. Chinese importers pay directly in RMB, Malaysian farmers receive Ringgit. This not only avoids USD fluctuation risk and reduces dual exchange costs, but also greatly ensures farmers’ profit forecasting and control. Nowadays, more farmers are proactively accepting RMB for exchange. Wallstreetcn: You just mentioned that full industry chain transfer has entered a deeper stage. For example, in the new energy vehicle track, what form does this deep supply chain layout take in ASEAN? Xin Tao: For Chinese new energy vehicles, the earliest “1.0 era” was simply exporting cars to Thailand. In the “2.0 stage,” companies invest locally, buy land and build factories—but 70% of core equipment and products are still manufactured in China, exported for local assembly. The supply chain remains incomplete. Now in “3.0 stage,” more source suppliers transfer directly to Southeast Asia. The proportion of domestic products may drop to 20-30%, with most of the production cycle occurring in a purely Southeast Asian environment. Suppliers for OEMs settle around their factories, forming localized industrial cluster chains. Wallstreetcn: The “UOB Smart Chain ASEAN Express” launched at this forum mainly targets light-asset, high-growth tech enterprises. How will this project substantively empower them? Xin Tao: It’s based on the strategic cooperation framework between UOB and Zhongguancun International. First is single-point docking—Chinese teams connect park enterprises, providing one-stop support, so companies going to Malaysia do not need to find a new local team; second is full industry chain collaboration—tailored help for tech and biopharma enterprises to find local partners or R&D institutions. For risk hedging, we offer cross-border capital pool and other flagship products; by leveraging the ASEAN regional base, we help companies set up Regional Treasury Centers (RTCs) to manage loans, financing, and funds across the region. Currently, USD financing costs are high. We can also provide low-interest financing solutions in RMB and local Southeast Asian currencies. Wallstreetcn: Looking ahead, what are the key plans for UOB Beijing Branch in promoting services for sci-tech enterprises in the Beijing-Tianjin-Hebei region? Xin Tao: Industrial coordination in Beijing-Tianjin-Hebei and construction of Beijing’s two zones have always been our focus in supporting the real economy. First is cross-regional collaboration—Beijing and Tianjin branches can work closely together; second is deep involvement in industrial clusters—for example, through “Smart Chain ASEAN Express,” we not only serve Zhongguancun in Beijing, but also deeply bind with Zhongguancun Group’s enterprises in parks across the country; third—single-point access, full-service—whether enterprises are in Hebei, Tianjin, or Beijing, by contacting one client manager at UOB, they can seamlessly get cross-area and cross-border business service support. Risk warning and disclaimer The market has risks; investments need caution. This article does not constitute personal investment advice, nor does it take into account individual users' special investment objectives, financial conditions, or needs. 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