On March 26, Zhongguancun Development Group, China Galaxy Securities, and UOB jointly hosted the "ASEAN Innovation Cooperation Development Forum" in Beijing. Focusing on cutting-edge fields such as the digital economy, green technology, and biopharmaceuticals, the forum served not merely as an investment promotion event but as a microcosm of the reshaping of Chinese enterprises' expansion into Southeast Asia. Over recent years, amid significant global supply chain disruptions, the commercial footprint of Chinese companies in ASEAN has undergone a thorough transformation. An evolution from "goods export" to "production capacity transfer," and further to "ecosystem co-construction," has become increasingly clear. Early overseas expansion was often a passive move to bypass trade barriers or a simple pursuit of low-cost production factors. However, against the backdrop of deglobalization undercurrents and geopolitical tensions, Chinese companies' moves into Southeast Asia have progressed beyond mere production output. Firms are no longer content with setting up assembly lines to obtain certificates of origin; instead, they are relocating R&D centers, upstream and downstream support, and even regional operational headquarters. The mode of expansion is evolving from light-asset, exploratory ventures by individual players to systematic, heavy-asset, long-term layouts. As commercial footprints cross borders and grow in scale, the resilience and efficiency of capital chains become the decisive factor for enterprises to truly take root abroad. In unfamiliar regulatory environments and volatile foreign exchange markets, the role of multinational financial systems has evolved into fundamental infrastructure connecting domestic parent companies with overseas entities. Whether through establishing cross-border cash pools to enhance global fund allocation efficiency, using derivatives to hedge currency risks between the home currency and local currencies, or assisting firms in setting up regional treasury centers, the depth of financial services directly forms an invisible moat for multinational corporations. It is against this evolving business narrative and capital chain challenges that UOB and Zhongguancun International launched the "UOB Smart ASEAN Express" initiative at the forum, aiming to build a more synergistic cross-border innovation ecosystem. Addressing the practical difficulties Chinese companies face in deepening their presence in ASEAN, an exclusive interview was conducted with Xin Tao, Managing Director of UOB China, Head of Wholesale Banking, and Beijing Branch President. According to Xin Tao, the core focus of overseas expansion has shifted fundamentally from the physical act of "going out" to the systemic challenge of "integrating in." The following is a transcript of the dialogue.

**Q: In the current wave of industrial chain restructuring, which hot sectors does UOB observe Chinese companies focusing on in ASEAN? What are the core pain points in practical implementation?** **Xin Tao:** Currently, industrial chain restructuring in ASEAN is mainly reflected in four core economic growth drivers: first, AI and the digital economy, along with high-tech innovation; second, new energy vehicles and smart manufacturing; third, green energy transition; and fourth, low-carbon infrastructure development. Pain points are concentrated in two areas: first, external market challenges, primarily stemming from increased geopolitical and tariff policy uncertainties leading to potential market risks; second, inherent integration risks for the companies themselves. For Chinese enterprises, "going out" is no longer the issue; the greater challenge lies in how to "integrate in."

**Q: Could you elaborate on the shift from "going out" to "integrating in"? What does this specifically entail?** **Xin Tao:** It is mainly reflected in integration across three dimensions. First, industrial chain integration. Chinese companies now often expand as cohesive groups with full supply chains, unlike the earlier model of single-business出海. Second, the integration of products with local markets, with the core being co-building the credibility of "Made in China" locally. Third, the reshaping of investment and financing structures, as corporate expansion inevitably involves capital chain transfers. For Chinese companies to achieve sustainable growth, beyond technological advantages, they need to achieve localized integration through efficient, inherent capital management.

**Q: Faced with these complex transnational challenges, what solutions has UOB provided?** **Xin Tao:** We address these challenges primarily through four dimensions. First, leveraging our team of professional industry experts to provide tailored comprehensive financial solutions for different sectors. Second, utilizing our network布局, including connectivity to the CIPS (Cross-Border Interbank Payment System) and coverage through nearly 500 branches in Southeast Asia. Third, service advantages; we have established "China Desks" in major ASEAN countries, offering one-stop, single-point contact services with staff who understand Chinese and local markets. Fourth, our "secret weapon" – the Foreign Direct Investment (FDI) Advisory Department.

**Q: In this evolution of multilateral models, RMB internationalization is a significant variable. Based on actual settlement volumes, what is the current acceptance level of RMB among ASEAN businesses? Could you share a specific hedging case?** **Xin Tao:** In 2018, relatively few clients were willing to use RMB for settlement. Now, a significant portion of clients are proficient users, while others maintain an open attitude for discussion. Relevant data shows that RMB's share in cross-border transaction volume in the ASEAN region has exceeded 30% of total goods trade, fully demonstrating its important role in regional trade. Take the durian import business in Malaysia as an example. Previously, Chinese importers and local farmers could only settle in US dollars, with low farmer acceptance of RMB. Later, we established a direct connection system between RMB and the Malaysian Ringgit. Chinese importers now pay directly in RMB, while Malaysian farmers receive settlements in their local currency, the Ringgit. This not only avoids both parties bearing USD fluctuation risks and reduces double exchange costs but also significantly enhances profit predictability and control for farmers. Consequently, more farmers are gradually actively accepting RMB as a settlement currency.

**Q: You mentioned full industrial chain transfer is entering a deeper phase. Taking sectors like new energy vehicles as an example, what form does this deep supply chain layout in ASEAN take?** **Xin Tao:** Using Chinese new energy vehicles as an example, the initial Phase 1.0 involved simply exporting vehicles to markets like Thailand. In Phase 2.0, companies invested locally, buying land and building factories, but 70% of core equipment and finished products were still manufactured domestically and exported for local assembly, indicating an incomplete local supply chain. Now, in Phase 3.0, an increasing number of upstream suppliers are moving directly to Southeast Asia. The proportion of finished products from China might drop to 20-30%, with most of the production cycle occurring within a purely Southeast Asian context. Suppliers to the original equipment manufacturers (OEMs) set up operations around their factories, forming localized industrial chain clusters.

**Q: The "UOB Smart ASEAN Express" launched at this forum primarily targets asset-light, high-growth tech companies. How will this program tangibly empower them?** **Xin Tao:** This initiative is a result of the strategic cooperation framework between UOB and Zhongguancun International. First, single-point contact: Our China team interfaces with companies within the park, providing one-stop support. Companies entering Malaysia do not need to find a new local team. Second, full industrial chain synergy: For tech and biopharmaceutical companies, we offer tailored services to help them find local partners or R&D institutions. Regarding risk hedging, we provide key products like cross-border cash pools. Simultaneously, leveraging our ASEAN regional foundation, we assist companies in establishing Regional Treasury Centers (RTCs) to manage regional lending, financing, and capital management comprehensively. Given the currently high USD financing costs, we can also offer alternative low-interest financing solutions combining RMB and Southeast Asian local currencies.

**Q: Finally, looking ahead, what are the key plans for UOB's Beijing Branch in serving the Beijing-Tianjin-Hebei region, particularly technology and innovation enterprises?** **Xin Tao:** Industrial synergy within the Beijing-Tianjin-Hebei region and the development of Beijing's "Two Zones" have always been focal points for our support of the real economy. First, cross-regional coordination: The Beijing Branch can work closely with the Tianjin Branch. Second, deep engagement with industrial clusters: For instance, through the "Smart ASEAN Express," we serve not only Zhongguancun in Beijing but also deeply engage with enterprises in Zhongguancun Group's parks nationwide. Third, one-point contact for comprehensive service: Regardless of whether a company is based in Hebei, Tianjin, or Beijing, interacting with just one UOB relationship manager enables seamless cross-regional and cross-border business development support.