How infrastructure and digital connectivity drive Asia-Pacific cooperation

During her recent Labor Day holiday in Kuala Lumpur, Lin Qian, a tourist from Chengdu in southwest China's Sichuan Province, was struck by how effortless it was to get around. "Even pop-up stalls and temporary festival booths widely accept digital payments," she said. 

Gone are the days of currency exchanges, credit-card headaches, and fumbling for cash. A simple scan was all it took.

Seamless payments are only one part of a much bigger picture. Behind the convenience of a digital transaction lies a growing network of physical infrastructure, logistics corridors and digital systems that are bringing Asia-Pacific economies closer together.

As the host of the 2026 Asia-Pacific Economic Cooperation (APEC), China will soon hold the 33rd APEC Economic Leaders' Meeting in Shenzhen, Guangdong Province – its third time after Shanghai in 2001 and Beijing in 2014.

The theme is "Building an Asia-Pacific Community to Prosper Together," with China stressing the need to tap into openness, innovation and cooperation.

Bringing markets closer

Upgrades to infrastructure across Asia-Pacific economies mean lower logistics costs, shorter transport times and access to new markets.

A case in point is the China-Laos Railway. Linking Kunming in southwest China's Yunnan Province with Lao capital Vientiane, it has evolved from a transport corridor into an international logistics artery.

Since 2021, the railway has moved over 20.77 million tonnes of import and export goods worth more than 100.4 billion yuan (about $14.9 billion), according to Kunming Customs. Meanwhile, the export share of high-value-added, high-tech products like smartphones, industrial robots, and new energy vehicles and their components has continued to rise. In the first eight months of this year, the value of mechanical and electrical products exported via the railway totaled 7.42 billion yuan, up 58.4% year on year.

Cross-border freight is maintaining strong momentum. The railway has transported 3.16 million tonnes of cross-border cargo as of this July, averaging about 17,000 tonnes per day, according to China Railway Kunming Group Co., Ltd. It now connects 19 countries and regions, including Laos, Myanmar, Cambodia, Thailand, Vietnam, Malaysia, Singapore and Bangladesh. The range of commodities transported has expanded from just over 10 categories at its opening to more than 3,800 today.

Enhanced transport links, such as the China-Vietnam railway cooperation mechanism launched last year, are paving the way for standard-gauge rail routes and expanded regional connectivity. And a premium cold-chain shipping route now facilitates two-way cargo flows between Malaysia's Kuantan Port and China's Beibu Gulf Port.

Together, these projects link complementary industries, open up market access and strengthen regional supply chains.

Making cross-border trade smarter

If physical infrastructure provides the arteries of regional cooperation, digital connectivity keeps the blood flowing. As e-commerce reshapes global trade, the ability to coordinate cross-border transactions is becoming vital, especially for small- and medium-sized enterprises.

In Thailand's Eastern Economic Corridor, a digital free trade zone developed by Chinese and Thai partners integrates trade, payment and logistics. Using an electronic three-document verification system, it enables one-off inspection and customs clearance, cutting the fulfillment cycle for China-Thailand cross-border e-commerce from 10 days to just three.

"Digital technology has not only sparked an efficiency revolution but also reshaped the industrial ecosystem across the Asia-Pacific," said Surasi Thantathong, director of the Thai-Chinese Strategic Research Center at Thailand's National Research Council.

Digital payments offer another example. By linking payment platforms with local financial networks, regional economies are making it easier for people to spend across borders, and helping local merchants reach more customers.

Recognizing the potential of emerging technologies, China has also placed digital and AI cooperation high on the agenda for its 2026 APEC host year. The APEC Digital and AI Ministerial Meeting, held in Chengdu in July, adopted a ministerial statement, with participating economies agreeing to promote digital and AI technologies to support regional development.

From transport corridors to digital platforms, connectivity plays a fundamental role in Asia-Pacific economic cooperation, expanding from the traditional "building roads and bridges" approach toward the coordinated development of physical and digital infrastructure alongside rules and standards.