ASEAN, China, and Gulf leaders convene in Kuala Lumpur to strengthen economic ties amid declining trust in US trade.

KUALA LUMPUR, May 27 — Southeast Asian leaders are seeking to shield their trade-reliant economies from growing geopolitical risks, particularly US-imposed tariffs, as they engage in talks with Chinese Premier Li Qiang and Gulf state representatives in Kuala Lumpur on Tuesday.

The move comes after US President Donald Trump disrupted global trade norms in April by announcing sweeping tariffs affecting nations worldwide, including American allies. Although a 90-day suspension was later granted for many of those measures, the episode has prompted the Association of Southeast Asian Nations (Asean) to accelerate plans to diversify its trade partnerships.

“A geopolitical shift is underway,” said Malaysian Prime Minister Anwar Ibrahim on Monday.

Following a grand gala dinner, Tuesday marks the inaugural summit between Asean, China, and the Gulf Cooperation Council (GCC) — which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Traditionally positioned as a mediator between major powers such as the US and China, Asean is now actively exploring new alignments, said Chong Ja Ian of the National University of Singapore (NUS). “Given waning confidence in Washington, Asean members are pursuing diversification,” he noted, adding that fostering ties between the Gulf and China is part of this strategy.

Malaysia, as the current Asean chair and host of the bloc’s 46th summit, is driving the effort, Chong added.

Opening the Asean-GCC summit on Tuesday, Anwar said both regional blocs “possess the capacity and responsibility to serve as pillars of stability and engines of future growth.” China is scheduled to join the summit later in the day.

China, which has been heavily affected by Trump’s tariffs, is also looking to strengthen its ties with alternative markets. Its foreign ministry expressed hopes on Monday to deepen cooperation with both Asean and the GCC.

Already each other’s largest trading partners, China and Asean saw Chinese exports to Thailand, Indonesia, and Vietnam jump significantly in April — a trend linked to rerouting of goods initially bound for the US.

Premier Li’s involvement is “timely and strategic,” said Khoo Ying Hooi from the University of Malaya. “China views this as a chance to reaffirm its role as a dependable economic ally, especially amid Western moves to decouple.”

Despite a temporary agreement between Washington and Beijing to ease tariffs for 90 days, Chinese goods still face elevated duties. A draft statement seen by AFP shows Asean expressing “deep concern” over unilateral tariffs, though it has refrained from introducing countermeasures.

While Asean has typically avoided aligning too closely with either Washington or Beijing, balancing relations remains complex. China ranks only fourth in foreign direct investment into Southeast Asia, behind the US, Japan, and the EU, noted Chong.

Anwar said Monday he has requested a US-Asean summit this year, though there has yet to be a response from Washington.

Despite Anwar’s assurance that “we are here as a friend of China,” aligning more closely with Beijing brings its own challenges. Philippine President Ferdinand Marcos Jr. reiterated the need for a binding code of conduct in the South China Sea — a region where China has ongoing disputes with five Asean nations.

Anwar confirmed raising the issue during his bilateral meeting with Li, emphasizing Asean’s appreciation of China’s commitment to regional cooperation, mainly focused on trade.

Still, ongoing tensions between China and the Philippines may keep the South China Sea issue in focus, said Chong. “Other claimants may prefer to let Manila confront Beijing, but the dispute won’t easily fade as many in the region wish to prioritize economic matters,” he warned. — AFP