How Europe can be Southeast Asia's hedge against US-China trade war
Southeast Asia finds itself stuck again between the world's trade heavyweights – the United States and China. The region's countries cannot economically afford to
side with one over the other even as tariffs, sanctions and the spectre of conflict begin to affect their economies.
Enter Europe, which has not been especially active in improving trading relations with the region. Reversing years of stalled efforts at Europe-Southeast Asia
economic partnerships is among the shrinking number of options available to buffer both regional economies from the effects of a spreading trade war.
A more economically integrated European Union and Southeast Asia could eventually rival trade levels seen on either side of the Pacific. However, that is only if officials can overcome the entrenched regional interests that currently thwart international cooperation.
At
the recent Shangri-La Dialogue , French President Emmanuel Macron called for Europe and Asia to not only strengthen security ties, but also to work on de-risking supply chains and negotiating more free trade agreements. But the road from rhetoric to practical application is fraught with obstacles.
So far there has been little to show for region-to-region efforts. Talks between the EU and Association of Southeast Asian Nations (Asean) for a trade and investment agreement were put on hold in 2009. Bilateral deals followed, with negotiations concluded between
the EU and Singapore in 2014 and with Vietnam in 2015.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
23 minutes ago
- South China Morning Post
China's Seazen markets first dollar-bond offering by a private builder since 2023
Seazen Group, one of the few major private-sector Chinese developers yet to default, started marketing a dollar bond that would be the first of its kind in more than two years. Once ranked among China's top 10 developers by contracted sales, the company set the initial price target for the three-year notes at 13.25 per cent, a person familiar with the matter said. If the issuance were successfully priced, Seazen would be the first privately owned local builder to tap the publicly syndicated US-currency bond market since early 2023. The securities can be called and put after two years. There has been a drought of dollar bond issuance by Chinese developers since the country became mired in a years-long real estate crisis, suppressing appetite for such debt. Dalian Wanda Group's property-management arm was the last major privately held property firm to sell dollar bonds, pricing two such notes in early 2023. Seazen has managed to withstand the headwinds in the sector and still operates an extensive line of shopping centres in smaller cities. Last year, rental income from commercial properties grew 13 per cent. It has also benefited from measures introduced by the government to broaden access to some commercial loans, putting up some of its properties as collateral to generate fresh funding. The new bond offered a slight premium over the company's existing 4.5 per cent note due in May 2026, which currently yielded 12.9 per cent, according to Bloomberg Intelligence analysts Daniel Fan and Hui Yen Tay. 'If printed, we expect this to attract more investors, both regional and global, to return to China high-yield dollar bonds,' said Zerlina Zeng, the head of Asian strategy at Creditsights Singapore. Seazen's liquidity was better than most high-yield Chinese developers, so it could probably obtain cheaper funding onshore by pledging its commercial real estate assets, she added.
The Standard
an hour ago
- The Standard
Hong Kong should be vigilant in times of peace: Justice chief
Secretary for Justice Paul Lam Ting-kwok speaks at the special exhibition's opening ceremony. Download The Standard app to stay informed with news, updates, and significant events - The upgraded app is now available on both iOS and Android platforms.
South China Morning Post
an hour ago
- South China Morning Post
Hong Kong re-exporters urged to remain cautious despite US-China trade talks
The latest US-China trade talks may have alleviated concerns among some Hong Kong re-exporters, but the sector should remain cautious because President Donald Trump's administration has been accused of creating crises to gain bargaining power, according to observers on Thursday. Advertisement High-level officials from the United States and mainland China concluded their two-day economic and trade consultation mechanism meeting in London on Wednesday. Trump announced that a trade agreement had been reached with the mainland, stipulating that tariffs on Chinese imports to the US would increase from the current 30 per cent to 55 per cent, while tariffs on US exports the other way would remain at 10 per cent, pending approval from himself and Chinese President Xi Jinping. According to Trump, the US would also gain access to the mainland's magnets and all necessary rare earth elements, while certain provisions would be offered in exchange, including allowing mainland students to study at American universities. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, suggested the deal could offer a slight benefit to Hong Kong, although it was too early to say the dust had settled between the two countries. Advertisement 'For Hong Kong, such a deal may help stabilise its US-China re-exports with less concern about electronic equipment supply chains, which is the largest trade item. Given the less intense environment, the front-loading demand may be lower than in the scenario of a full-fledged trade war,' he cautioned. 'There is no guarantee that what we see right now will remain, and more restrictions can return at any time, especially as the US includes China clauses in its deals with other countries, which may also affect Hong Kong.'
