First-ever summit ‘a response to the call of the times' in uncertain world

Kuwait Times

2 days ago

China sees opportunity to reinforce its image as reliable economic partner
KUALA LUMPUR: Chinese Premier Li Qiang said Tuesday that the first-ever summit between his country, Southeast Asian leaders and Gulf states was 'a response to the call of the times' in a geopolitically uncertain world. 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,' he said. 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 (NUS). With Washington looking unreliable these days, 'ASEAN member states are looking to diversify'. 'Facilitating exchanges between the Gulf and People's Republic of China is one aspect of this diversification,' he said.
'Timely and calculated'
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 told AFP.
'China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.' At dinner on Tuesday, Li urged ASEAN and the GCC to 'persist in opening up'. Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days. Chinese goods still face higher tariffs than most though. According to a draft statement seen by AFP, ASEAN will express 'deep concern... over the imposition of unilateral tariff measures'. But the bloc earlier this year said it would not impose retaliatory duties.
'Centrality'
ASEAN has historically avoided choosing a side between the United States and China. China is only Southeast Asia's fourth largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS' Chong. At a press conference at the tail-end of the talks, Malaysian Prime Minister Anwar Ibrahim vowed ASEAN would continue engaging both Washington and Beijing. 'The... ASEAN position is centrality,' Anwar said, adding 'if it means working with the Chinese, yes we'll do that.'
However, 'it makes a lot of sense to continue to engage and have reasonably good relations' with the United States, he added. Dialogue with Washington was particularly important as Malaysia has become a hub for semiconductors, he said. State-of-the-art chips have become a focal point of Washington's trade restrictions, as they try to prevent China from undermining US dominance in artificial intelligence.
Anwar said Monday he had written to request an ASEAN-US summit this year, with his foreign minister saying Washington had not yet responded. Closer alignment with Beijing presents problems of its own. On Monday, Philippines leader Ferdinand Marcos said there was an 'urgent need' to adopt a legally binding code of conduct in the South China Sea. Beijing has territorial disputes with five ASEAN member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters. Anwar raised the South China Sea with Li and the Philippines, saying: 'I'm not saying all issues can be resolved now but there was real positive engagement.' — AFP