Report 1 / China outbound series / September 2026
After the factory moves
Chinese manufacturers have put $78 billion of plant into Southeast Asia. The finance, data and compliance systems behind those plants have not followed at the same speed.
Key findings
Four things the data show
The analysis draws on Chinese and host-country investment statistics, customs data and the filings of 5,569 listed companies.
Manufacturing leads China’s investment in the region by a wide margin
The stock of Chinese manufacturing investment in ASEAN rose from $32 billion to $78 billion in five years. Investment in IT, software and telecom services reached $5.2 billion, or 7 percent of the manufacturing total.
China outward direct investment stock in ASEAN by sector
Source: Ministry of Commerce of China, via Wind; HEXU analysis.
The equipment has followed the capital
Exports of machinery and electrical equipment to five ASEAN economies grew from $136 billion to $263 billion. Shipments to Thailand multiplied 2.4 times and shipments to Vietnam 2.1 times.
Exports under HS chapters 84 and 85, USD billion
Source: General Administration of Customs of China, via Wind; HEXU analysis.
Software has not followed the factories
Automotive companies multiplied their overseas revenue 2.7 times between 2020 and 2025. Computer and software companies grew 1.5 times from a far smaller base. Most Chinese manufacturers abroad are not being followed by Chinese IT service providers.
Overseas revenue of A-share companies by sector, RMB billion
Source: Company annual reports, via Wind; constant sample of companies reporting in both years; HEXU analysis.
The rules changed while the plants were being built
Malaysia, Vietnam and Indonesia now require invoices to pass through the tax authority’s platform. Four countries regulate the transfer of personal data to headquarters. All five apply the 15 percent global minimum tax.
Status of ten regimes that affect a plant’s finance and IT systems
Source: National tax and data protection authorities; adviser publications listed in the report. Status as of 28 September 2026.
Who is exposed
842 manufacturers, mostly mid-sized
Of these, 553 employ between 1,000 and 20,000 people. Their median revenue is RMB 2.6 billion and the median company earns 53 percent of revenue abroad.
A plant that invoices from a spreadsheet cannot obtain clearance from a government platform without manual re-entry.
Payroll and attendance records sent to headquarters are now a regulated transfer in four countries.
Headquarters consolidates in one chart of accounts and the plant keeps books in another. Reconciliation is done by hand.
What to do
A 180-day plan to catch up
Companies that begin by selecting software tend to automate the process they already have. We recommend starting with the facts.
Days 1 to 30
Establish the facts- List every legal entity, its activity and turnover.
- Record which rules apply to each entity today.
- Name one executive who owns the result.
Days 31 to 90
Close the urgent gaps- Connect billing to the tax platform in each clearance country.
- File transfer assessments and appoint data protection officers.
- Agree one group chart of accounts.
Days 91 to 180
Build for the next plant- Choose a standard system template for new sites.
- Review rule changes in each country every quarter.
- Report compliance status to the board twice a year.
The full report has nine exhibits, country-by-country rules and the method.
This summary is not legal or tax advice. Thresholds and dates change often.