With US-China rivalry ‘putting the squeeze' on Asian markets, is taking sides an option?
Caught in the undertow of swirling power plays between China and the United States, Asia has become like a piece of driftwood battered by the pounding of opposing tides.
With key tariff deadlines approaching in July, and in light of lingering trade tensions between the world's two biggest economies, many countries in the region are facing a delicate, pragmatic choice: bow to Washington's growing pressure to crack down on supply chains and enforcement – or preserve the economic ambiguity that underpins their deep ties with Beijing?
Asian countries have entwined their supply chains, technology, markets and investment with Beijing – accounting for one-third of China's total trade volume, or US$1.89 trillion last year. Meanwhile, some of them may need security assurances from the US amid the growing Chinese influence in the region, analysts said.
China remains the top trading partner for 18 countries across the region and has been the largest trading partner of the Association of Southeast Asian Nations (Asean) for 15 consecutive years.
Meanwhile, economic asymmetry and military advantage have often translated into Beijing's leverage in market power while, for many in the region, Washington represents security, diversification and strategic rebalancing, with its military presence, investment and advanced technology, analysts said.
That leaves many Asian economies walking a tightrope – benefiting from China's vast market while remaining wary of the risks of over-dependence.
For much of Asia, maintaining ties with both while caught in between has become a survival strategy.
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