Malaysia’s recent decision to invite China and representatives from Arab Gulf states to the ASEAN summit in May has sparked significant attention beyond the borders of Southeast Asia, where Malaysia currently holds the chairmanship of the 10-member trade bloc. Malaysian Prime Minister Anwar Ibrahim clarified that the presence of these non-members at the summit does not indicate a stance against the United States or imply that ASEAN is “choosing sides.” He emphasized the importance of ensuring ASEAN’s strategic relevance in a multipolar world.

However, Anwar’s proposal for a trade alliance involving ASEAN, China, and the resource-rich Gulf states may not be well-received by Washington, according to Sam Baron, a researcher at the Yokosuka Council on Asia-Pacific Studies in Japan. Several ASEAN nations, Gulf states, and China have significant trade surpluses with the US, and Baron warns that these nations need to exercise caution given President Trump’s readiness to use trade policy as a tool.

Despite its economic significance, ASEAN is a far from homogeneous bloc, comprising countries with vastly different economic backgrounds, from low-income nations to wealthy city states. The bloc has, however, benefited from the US-China trade tensions, attracting foreign investment and gaining global market share.

The COVID-19 pandemic exposed vulnerabilities in global supply chains, leading many multinational companies to diversify their investments into ASEAN nations, away from China. This shift is seen as a opportunity for ASEAN countries to position themselves as key players in global trade.

Malaysia, Indonesia, and Singapore, being neighbors to the Strait of Malacca—a crucial global trade route—hold a strategic advantage in facilitating international commerce. However, the unpredictability of global trade, exacerbated by President Trump’s ongoing trade conflicts, adds complexity to the future of international trade relations. Despite these challenges, there is potential for ASEAN to expand its role in global trade through strategic partnerships with countries like China and the Gulf states.

Source: https://www.dw.com/en/asean-summit-invites-china-gulf-states-amid-tariffs-threat/a-71837291?maca=en-rss-en-all-1573-rdf