The trade-dependent economies are looking to insulate themselves after US President Donald Trump blew up global trade norms by announcing a slew of tariffs targeting countries around the world this year.
Though he subsequently instigated a 90-day pause for most, the experience has spurred the Association of Southeast Asian Nations (Asean) and others to accelerate efforts to diversify their trading networks.
On Tuesday the Malaysian capital hosted the inaugural summit between Asean, China and the Gulf Cooperation Council (GCC) – a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Li told the meeting that “against the backdrop of a volatile international situation”, the summit was “a pioneering work of regional economic cooperation”.
“This is not only a continuation of the course of history, but also a response to the call of the times’.”
Opening the talks, Malaysian Prime Minister Anwar Ibrahim said he was confident the three sides could “shape a future that is more connected, more resilient and more prosperous for generations to come” – having warned on Monday that “a transition in the geopolitical order is underway”.
Asean has traditionally served as “a middleman of sorts” between developed economies like the United States and China, said Chong Ja Ian from the National University of Singapore.
With Washington looking unreliable these days, “Asean member states are looking to diversify”, he said.
“Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification.”
Malaysia, which holds ASEAN’s rotating chairmanship, is the main force behind the initiative, Chong said.
Beijing has suffered the brunt of Trump’s tariffs and is also looking to shore up other markets.
China and Asean are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April – attributed to a re-routing of US-bound goods.
Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya said.
“China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”
According to a draft statement, Asean will express “deep concern… over the imposition of unilateral tariff measures”. (AFP)
