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Why ASEAN-China unity is Asia's best defense against trade wars
Now, more than ever, Southeast Asia and China must forge a united front against destabilizing forces and champion free trade as the cornerstone of their shared economic future.
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(From left to right) Myanmar's Permanent Secretary of Foreign Affairs Aung Kyaw Moe, Philippines' President Ferdinand Marcos Jr, Singapore's Prime Minister Lawrence Wong, Thailand's Prime Minister Paetongtarn Shinawatra, Vietnam's Prime Minister Pham Minh Chinh, China's Premier Li Qiang, Laos' Prime Minister Sonexay Siphandone, Malaysia's Prime Minister Anwar Ibrahim, Brunei's Sultan Hassanal Bolkiah, Cambodia's Prime Minister Hun Manet, Vice President Ma'ruf Amin and East Timor's Prime Minister Xanana Gusmao pose for a group photo at the 27th ASEAN-China Summit during the 44th and 45th ASEAN Summits in Vientiane on Oct. 10, 2024. (AFP/Nhac Nguyen)
T
he global trading system, a pillar of shared prosperity, is now under siege. The specter of trade protectionism, roused by Washington's sweeping tariffs on major trading partners, threatens to unravel decades of economic progress.
For ASEAN, a region whose growth has been fueled by open markets, this is not a distant storm but an imminent crisis. Now, more than ever, Southeast Asia and China must forge a united front against these destabilizing forces and champion free trade as the cornerstone of their shared economic future.
The ASEAN-China economic partnership has long been a model of mutual benefit. Since 2009, China has stood as ASEAN's largest trading partner, while ASEAN dethroned the EU as China's top trading partner in 2020.
This synergy is no coincidence: China's vast consumer market aligns seamlessly with ASEAN's dynamic, export-driven economies. From Vietnamese electronics to Indonesian palm oil and Thai automotive parts, Southeast Asia's goods flow into Chinese ports, while Chinese investments and technologies fuel infrastructure and innovation across the region.
Yet this interdependence is now at risk. The resurgence of "America First" policies, marked by tariffs, export controls and supply chain reshoring, has sent shockwaves through the global economy.
Although ASEAN is not yet the primary target, the region's significant trade surpluses with the United States (with all members except Singapore running surpluses in 2024) make it vulnerable. Analysts warn that export-dependent economies such as Vietnam, Thailand and Malaysia could face serious economic fallout if dragged into an escalating trade war.
The US-inflicted trade war has already exposed a hard reality: In today's interconnected world, tariffs are not surgical strikes but economic cluster bombs.
