US tariffs loom over Asean Summit as ties with China strengthen
[KUALA LUMPUR] South-east Asian leaders start two days of talks from Monday (May 26), seeking to deepen ties with China and Gulf nations, and mitigate the fallout from US President Donald Trump's tariff hikes.
Trade and economic cooperation will likely dominate the agenda of the 10-nation Association of South-east Asian Nations summit taking place in Kuala Lumpur, along with conflicts in Gaza and Myanmar.
While the first of the two Asean summits held annually is usually reserved for South-east Asian leaders, China is sending its No 2 official, Premier Li Qiang. The leaders of the Gulf Cooperation Council nations, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates will also be in attendance. By contrast, the US and other Western nations will not be represented.
For Malaysian Prime Minister Anwar Ibrahim, the summit he's hosting is a chance to foster trade ties at a time when nations with large surpluses with the US are on the hunt for new investment opportunities abroad. China is warning partners to avoid any deal with the US that comes at Beijing's expense, leaving Asean members to walk a delicate balance between the world's two top economies.
'There is no substitute for the United States,' said Shahriman Lockman, an analyst at the Institute of Strategic and International Studies in Malaysia. 'Yes, we talk about diversification and autonomy. But let's not kid ourselves – there is no real alternative in sight.'
Trade between China and Asean nations reached US$982.3 billion last year, according to a report by the state-run Xinhua News Agency. By comparison, US goods trade with the region totalled US$476.8 billion in 2024 – US$352.3 billion of which were American imports from the region, official data shows.
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The summit comes weeks after Chinese President Xi Jinping visited Vietnam, Malaysia and Cambodia, during which he pitched for a unified 'Asian family' – an apparent effort to counter US pressure on nations to limit trade ties with Beijing.
The Asean members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
New partners
Indonesia became a full member of the Russia and China-led Brics group of developing nations earlier this year, with Malaysia, Vietnam and Thailand given partner nation status.
Last week, Asean and China concluded talks to upgrade a free trade pact that includes chapters on digital and green economies and small and medium-sized enterprises, according to Chinese state media.
'I see this as a very good opportunity for us to show that Malaysia is a neutral country that wants to trade with any country that would like to trade with us,' Malaysian Communications Minister Fahmi Fadzil told reporters of the summit.
Back in Washington, negotiators from several countries in the region are working on deals to avert some of the highest tariff hikes announced last month by Trump. Whether those efforts will pan out are unclear and the US rejected a Malaysia-led attempt to negotiate as a bloc, according to local reports.
South-east Asia has also engaged in a spate of intra-regional visits to facilitate business closer to home, although that will not likely come close to filling the gap left by the US if it does not drop levies.
'These are encouraging, but it does not mean that the trouble is over,' Singapore Deputy Prime Minister Gan Kim Yong said this month. He added that Asean is negotiating to upgrade an existing trade agreement that could facilitate lower levies even though more than 90 per cent of goods traded in the region are already tariff-free.
Conflicts abroad
Beyond trade, regional leaders are expected to have sessions ahead of the summit to discuss the ongoing civil war in military-ruled Myanmar. Anwar has also used recent trips abroad to warn of a widening chasm in the global north-south economic divide and criticise Israel's backers over its war with Hamas in Gaza.
He told reporters last week he would 'probably touch on' the subject in a bid to push for a ceasefire. Whether any other substantive outcomes are reached, meanwhile, remains to be seen.
'Despite rhetoric from the Malaysian government as chair, there has been very little evidence of an Asean effort here,' said Gregory Poling, a director and senior fellow at the Center for Strategic and International Studies. 'The stakes are actually pretty low.' BLOOMBERG
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'We didn't want to make people feel guilty with posters about religion or animal cruelty. We told customers, 'Eat green, feel good.'' Despite packed lines, Greendot ran losses for the first two years. Ingredients cost as much as 50 per cent of revenue. In 2013, the third partner exited the business. But the duo pressed on. In December that year, they opened their first mall outlet at Bedok Mall – a 20-seat kiosk that marked the brand's transformation into a fast-casual chain. Mr Fu, who was in his final year at university, used the example of his business transitioning from canteen stall to mall outlet as a school project, which he passed with flying colours. Early struggles Greendot's pivot to fast-casual was born out of necessity and ambition. School canteens were viable only for about eight months a year. Exam periods and school holidays meant months of red ink. 'We couldn't keep the staff. We needed something sustainable,' Mr Fu says. Renting a kiosk at a mall – with air-conditioning, better work conditions and constant footfall – made sense. 'We wanted to attract the p ublic. We had to move beyond the vegetarian niche.' The team replaced the economy rice format wit h b entos and set meals, each featuring premium ingredients such as Signature Lion's Mane Mushroom Rendang with Turmeric Basmati Rice ($10.90). Signature Lion Mane Mushroom Rendang With Turmeric Rice at vegetarian chain Greendot. ST PHOTO: HEDY KHOO Customers who once turned up their noses at vegetarian food started returning three to five times a week. But Mr Fu – who had by then graduated with a business administration degree – was working 17-hour days, with little to show for it. He felt demoralised paying himself $1,200 a month, while his peers in other jobs were earning twice as much or more. His social life was in shambles. Friends had stopped asking him out because he was always working. But with 15 employees across the three canteen stalls and Bedok Mall outlet, he felt he could not let them down. His parents were supportive. His father, aged 70, is a retired operations manager at a toy wholesaler. His mother, 67, still works as a human resources and finance manager. 'My parents felt I should learn to endure hardship and find my own way. But my friends thought it strange for a carnivore like me to sell vegetarian fare. I did not even like cooking before. I used to eat only fried food and meat.' In December 2014, Greendot opened its flagship outlet at Paya Lebar Square, a 1,900 sq ft unit with 70 seats. The duo poured $350,000 into setting it up and hired a consultant to rebrand the business. Believing in the venture, both founders' families came on board as investors. Prices remained accessible – the average spend is $12 to $15 a head – with complimentary soup refills and dishes plated with care. Recipes and sauces are prepared at a central kitchen to ensure consistency. Popular items then and now include Laksa Noodles ($9.50) and Curry Mayo Konnyaku Burger ($14.90). Curry Mayo Konnyaku Burger at vegetarian chain Greendot. ST PHOTO: HEDY KHOO The vegetarian prawns in the laksa, made with konnyaku, are so springy that first-time diners sometimes question if they are really plant-based. Some mistake the sambal's soya mince for hae bee (dried prawn). Laksa Noodles at vegetarian chain Greendot. ST PHOTO: HEDY KHOO In 2014, they shuttered their school stalls and expanded into malls – Westgate, One Raffles Place, Nex, VivoCity and Northpoint City. A fast-casual chain had taken root. Outlets at Westgate, Star Vista, Nex and Northpoint City, earlier owned by franchisees, were re-acquired by Greendot Group in 2021. Still, not every move was a win. 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She covers food-related news, from reviews to human interest stories. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
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Straits Times
an hour ago
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Thailand and Cambodia reinforcing troops on disputed border after May skirmish, Thai minister says
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