ASEAN opens summit with Persian Gulf nations and China as U.S. threatens tariffs

CTV News

27-05-2025

Malaysia's Prime Minister Anwar Ibrahim, left, greets Ruler of the UAE's Emirate of Ras al-Khaimah Sheikh Saud bin Saqr al Qasimi in Kuala Lumpur on Tuesday, May 27, 2025. (Mohd Rasfan/Pool Photo via AP)
KUALA LUMPUR, Malaysia — A regional association of Southeast Asian nations held a three-way summit Tuesday with China and six Persian Gulf countries in efforts to expand economic engagement and bolster resilience as they grapple with a volatile global trading system due to U.S. tariff hikes.
Malaysian Prime Minister Anwar Ibrahim, in his opening remarks, said the inaugural summit in Malaysia's capital Kuala Lumpur would open up a new chapter of dialogue and cooperation.
The 10-member Association of Southeast Asian Nations, the GCC and China collectively has a combined GDP of nearly $25 trillion and a market of over 2 billion people, offering vast opportunities to synergize their markets and promote cross-regional investment, he said.
'I am confident that ASEAN, the GCC, and China can draw upon our unique attributes and shape a future that is more connected, more resilient, and more prosperous,' he told the summit, attended by Chinese Premier Li Qiang.
Li said the three-way cooperation would benefit all sides, contributing to economic development and peace in the region. China is ASEAN's top trading partner, and has sought to present itself as a reliable ally to the region amid its rivalry with the U.S. The GCC supplies over a third of China's crude oil imports.
'China will join ASEAN and the GCC in forging synergies that multiply rather than simply at our own strength,' he said.
Brunei's Sultan Hassanal Bolkiah, one of the world's wealthiest men and longest-reigning current monarch, was missing from the three-party summit. He attended ASEAN summits on Monday and the ASEAN-GCC meeting earlier Tuesday.
Anwar later told reporters that the sultan, 78, was hospitalized due to fatigue. 'He is feeling a little tired, so he's just resting' at the National Heart Institute, Anwar said. Brunei officials couldn't immediately be reached for details.
Malaysia is the current chair of ASEAN, which also includes Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Earlier Tuesday, Anwar told a separate ASEAN-GCC forum that partnership between the two blocs would be key to navigate an increasingly complex global economy and geopolitical challenges. He later said the two sides planned to launch talks to establish a free trade area.
Kuwait's Crown Prince Sheikh Sabah Khalid Al Sabah said the two blocs, which held their first summit in Riyadh in 2023, would build on their momentum to deepen cooperation and 'improve our ability to face crisis.' He said the GCC is ASEAN's seventh-largest trade partner, with total trade reaching $130.7 billion in 2023.
The GCC comprises the oil-producing nations of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Anwar said last week the GCC already has strong links with the U.S. and 'wants to be close to China too.'
ASEAN has maintained a policy of neutrality, engaging both Beijing and the United States, but U.S. President Donald Trump's threats of sweeping tariffs came as a blow. Six of the bloc's members were among the worst hit, with tariffs between 32% and 49%.
Trump announced a 90-day pause on tariffs in April for most of the world, and this month struck a similar deal with key rival China, easing trade war tensions. ASEAN is seeking a summit with Trump on the tariffs, while moving to expand trade ties with China and others.
Anwar told a news conference at the end of the summit that ASEAN wasn't pivoting towards China but it works with both Beijing and Washington because it makes economic sense.
'I don't think (ASEAN) is tilting in anyway,' he said.
Collins Chong Yew Keat, a foreign affairs, strategy and security analyst with Universiti Malaya, said the ASEAN-GCC-China summit underscored Beijing's efforts to strengthen support during its trade battle with the U.S. He noted it came on the heels of Trump's recent charm offensive in Saudi Arabia, Qatar and the United Arab Emirates.
While relying on U.S. defence support, ASEAN is increasing reliance and partnership with China and other U.S. rivals, Chong said. The bloc has failed to take strong action against Beijing's aggression in the disputed South China Sea, he said. ASEAN members Vietnam, the Philippines, Malaysia and Brunei have overlapping claims with China, which asserts sovereignty over almost the entire South China Sea.
'If this continues under the current Trump administration, it will create further room for Washington to distance itself from the region, which will spell disaster and create an even deeper Chinese presence,' he said.
Eileen Ng, The Associated Press