ECONOMIC ALLIANCES Southeast Asian leaders are gathering in Kuala Lumpur, Malaysia, for a historic summit with China and the six-member Gulf Cooperation Council (GCC). This meeting aims to shield their trade-dependent economies from the impact of steep US tariffs. The summit takes place on the second day of the 10-member Association of Southeast Asian Nations (ASEAN) annual summit.
Strengthening Ties for Economic Resilience
Malaysian Prime Minister Anwar Ibrahim emphasized the importance of stronger ties between ASEAN and GCC, stating, “I believe the ASEAN-GCC partnership has never been more important than it is today, as we navigate an increasingly complex global landscape marked by economic uncertainty and geopolitical challenges.” Anwar highlighted the strain on the global trading system due to US unilateral tariffs and the surge in protectionism, which is causing multilateralism to break apart.
China’s Call for Cooperation
Chinese Premier Li Qiang met with Anwar on Monday, calling for expanded trade and investment ties between Beijing, ASEAN, and GCC. Li emphasized the need for coordination and cooperation to uphold open regionalism and true multilateralism, saying, “At a time when unilateralism and protectionism are on the rise and world economic growth is sluggish, China, ASEAN, and GCC countries should strengthen coordination and cooperation.” China is willing to work with Malaysia to promote closer economic cooperation and respond to global challenges.
Diversifying Economies
ASEAN members are looking to diversify their economies, with Chong Ja Ian from the National University of Singapore stating, “Given the uncertainty and unpredictability associated with economic relations with the United States, ASEAN member states are looking to diversify.” Facilitating exchanges between the Gulf and China is one aspect of this diversification. Malaysia is the main force behind this initiative.
Key Areas of Focus
The summit’s agenda is expected to revolve around:
- Energy Security: ASEAN and GCC will discuss energy needs and power dynamics, with the GCC remaining a critical energy exporter and ASEAN playing a role in LNG trade and green technology.
- Digital Connectivity: The summit will focus on digital, physical, and institutional connectivity, including China’s Digital Silk Road and Saudi Arabia’s Vision 2030.
- Trade and Investment: Leaders will outline strategies to leverage the economic strength of ASEAN, GCC, and China, with a combined GDP approaching $25 trillion.
The meeting signifies a collective effort to navigate geopolitical dynamics and strengthen economic cooperation among the participating nations.