Friday

05-30-2025 Vol 1976

GCC, China, and ASEAN Collaborate for Economic Unity Amid Global Tensions

The Gulf Cooperation Council (GCC), China, and the ten-member Association of Southeast Asian Nations (ASEAN) have come together to establish a collaborative roadmap aimed at fostering peace, prosperity, and equity among their nations. This agreement was reached during a pivotal trilateral meeting held in Kuala Lumpur, Malaysia.

This gathering showcases a shift in global power dynamics, particularly in light of rising economic uncertainties fueled by U.S. President Donald Trump’s threats of substantial tariffs.

In a joint statement released, the participants of the trilateral meeting expressed their commitment to enhancing economic collaboration, with a strong emphasis on free trade.

The nations involved in this initiative include the GCC members – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – along with ASEAN countries such as Indonesia, Singapore, Malaysia, Thailand, Vietnam, the Philippines, Brunei, Cambodia, Laos, and Myanmar.

The statement highlighted their intent to expedite negotiations for a GCC-China Free Trade Agreement and to upgrade the existing ASEAN-China free trade area.

During a news conference, Malaysia’s Prime Minister Anwar Ibrahim, who presided over the summits as ASEAN chair, noted that the collective GDP of the GCC, China, and ASEAN totals approximately $24.87 trillion, encompassing around 2.15 billion people.

This economic scale, according to Prime Minister Anwar, provides significant opportunities for market synergy, innovation, and cross-regional investment.

He dismissed claims that ASEAN was overly aligning with China, emphasizing the importance of balanced engagement with major global powers, including the United States.

Analysts recognize the importance of this tripartite meeting for China, who, as James Chin from the University of Tasmania remarks, is gaining a platform in an environment where the U.S. holds less prominence.

Chin asserts that both ASEAN and GCC nations already acknowledge China as a formidable global power in contemporary geopolitics.

Speaking at the summit, Chinese Premier Li Qiang asserted China’s readiness to strengthen ties with both the GCC and ASEAN, laying the groundwork for mutual respect and equality in collaborative efforts.

Li emphasized a commitment to aligning developmental strategies, enhancing macro policy coordination, and deepening collaborative industrial specialization among these regional entities.

Former Malaysian ambassador to the U.S., Mohamed Nazri bin Abdul Aziz, indicated that China is quickly filling the leadership void in global matters as nations feel the impact of Trump’s tariff policies.

Nazri expressed optimism about the economic outlook for ASEAN, China, and the Gulf countries, noting their rapid growth rates compared to stagnating economies in the U.S. and European Union.

The analyst Jaideep Singh from the Institute of Strategic & International Studies in Malaysia reported that trade between ASEAN and GCC countries has surged significantly.

As of 2024, total trade between ASEAN and Gulf nations reached approximately $63 billion, positioning the GCC as the fifth-largest external trading partner for ASEAN.

He noted that Malaysia’s trade with GCC nations alone experienced a 60 percent increase from 2019 to 2024.

Foreign direct investment (FDI) from GCC countries in ASEAN reached about $5 billion by 2023, with Malaysia receiving $1.5 billion from this investment.

Despite the growth in trade relations with China, the U.S. continues to be a crucial market for ASEAN nations.

In early 2024, the U.S. surpassed China to become ASEAN’s largest export market, accounting for 15 percent of the bloc’s exports, an increase of nearly 4 percent since 2018, as stated by Carmelo Ferlito, CEO of the Center for Market Education, based in Malaysia and Indonesia.

He further emphasized that the U.S. remains the largest source of cumulative foreign direct investment in ASEAN, with total investments reaching around $480 billion in 2023—almost double the combined investments by the U.S. in China, Japan, South Korea, and Taiwan.

The meeting also addressed significant humanitarian issues, including the conflict in Gaza. Delegates condemned attacks on civilians and called for a sustainable ceasefire and the unobstructed delivery of essential services such as food and medicine throughout Palestinian territories.

The joint statement advocated for a two-state solution to the Israeli-Palestinian conflict, demanding the release of detained individuals and calling for an end to Israel’s “illegal presence” in occupied territories.

The humanitarian crisis in Myanmar was another focal point during the ASEAN summit.

Memorializing a ceasefire among warring factions established following the disastrous earthquake in March, ASEAN leaders called for its expansion as the existing ceasefire nears expiration at the end of May.

Despite these efforts, human rights organizations have documented ongoing military attacks on civilians by Myanmar’s regime, raising concerns about the sincerity of peace efforts.

Zachary Abuza, a professor specializing in Southeast Asia politics and security at the National War College in Washington, commented on the challenges faced by Prime Minister Anwar in navigating peace negotiations, highlighting the military’s unwillingness to engage in good faith.

In conclusion, the trilateral meeting signifies not only an important step towards economic collaboration among the GCC, China, and ASEAN but underscores the complexities and challenges of geopolitical dynamics in a rapidly changing world.

image source from:https://www.aljazeera.com/news/2025/5/28/gulf-states-china-take-centre-stage-at-summit-of-southeast-asian-nations

Abigail Harper