logo
This moment in US-China rivalry is Asean's chance to remake the bloc

This moment in US-China rivalry is Asean's chance to remake the bloc

Asean is at a critical juncture. The Southeast Asian bloc, caught between the currents of the
US-China trade war , is making a dive for strategic space between a new free-trade agreement with China and the possibility of a Trump tariff meeting.
Last month, China and the Association of Southeast Asian Nations
finalised negotiations to upgrade their 15-year-old free-trade agreement. Set to be signed by the end of the year, the deal aims to deepen China-Asean economic integration by
incorporating digital trade, green economy initiatives and supply chain connectivity.
Bilateral trade in goods exceeded US$980 billion last year – China and Asean are each other's biggest trading partner – underscoring the deal's strategic weight.
At the same time, Prime Minister Anwar Ibrahim of Malaysia, the current Asean chair, has
written to US President Donald Trump to press for an Asean-US meeting to discuss tariffs. These include the
10 per cent baseline tariff and
'reciprocal' tariffs ranging from 17 per cent for the Philippines to 49 per cent for Cambodia. Anwar is seeking a
unified response to ensure trade fairness for Asean's export-driven economies.
In this moment of tension, Asean has a critical opportunity to rise above passivity, leveraging its diplomatic agility to assert itself as a linchpin in global trade and geopolitics – and become the architect of a new regional order. Rather than being a battleground for US-China rivalry, Asean can redefine its role by fostering a neutral, inclusive trade ecosystem that prioritises regional resilience and strategic autonomy.
This opportunity hinges on Asean's ability to exploit the US-China rivalry. Asean's unique position of being geographically central, economically vibrant and diplomatically neutral allows it to shape trade rules rather than merely adapt to them. But this requires navigating internal divisions and external pressures with unprecedented cohesion.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Cambodian-American chefs want to share their cuisine and stop talking about the past
Why Cambodian-American chefs want to share their cuisine and stop talking about the past

South China Morning Post

time20 minutes ago

  • South China Morning Post

Why Cambodian-American chefs want to share their cuisine and stop talking about the past

Chef Phila Lorn was not necessarily aiming for authentic Cambodian food when he opened Mawn in Philadelphia, the US city where he was born, two years ago. So when he approached some Cambodian teen patrons he braced himself for questioning. Advertisement 'Someone's going to say something like, 'That's not how my mom makes her oxtail soup',' Lorn says. 'So I walk up to the table. I'm like, 'How is everything?' And the kid looks up at me and he goes, 'It doesn't even matter, dude. So glad you're here'.' It was at that moment that Lorn realised Mawn – the phonetic spelling of the Khmer word for 'chicken' – was more than a noodle shop. It meant representation. In June, he will be representing his dual cultures – Cambodian and Philly – at his first James Beard Awards as a nominee for best emerging chef. In the food world, it is akin to getting nominated for the Academy Awards. Phila Lorn and Rachel Lorn opened Mawn restaurant in Philadelphia two years ago. Photo: AP Cambodian restaurants are not as common in the United States as Chinese takeaways or sushi spots. Cambodian food is often lazily lumped in with its Southeast Asian neighbours, despite distinct differences. But in recent years, enterprising Cambodian American chefs have come into their own, introducing traditional dishes or putting their own twist on them. Advertisement Many of them were raised in families who fled the Khmer Rouge's reign of terror, which began 50 years ago and killed about 1.7 million people. Since then, the Cambodian community in the US has grown and put down roots.

Hong Kong's stablecoin ambitions offer Beijing a channel to bring yuan into crypto world
Hong Kong's stablecoin ambitions offer Beijing a channel to bring yuan into crypto world

South China Morning Post

time28 minutes ago

  • South China Morning Post

Hong Kong's stablecoin ambitions offer Beijing a channel to bring yuan into crypto world

China is not a fan of cryptocurrencies. Over the past decade, the Chinese government has built up one of the world's most hostile regulatory frameworks against cryptocurrency-related activities, including trading and mining. Beijing views digital assets like bitcoin as a threat to the country's financial stability and capital account controls, and even a challenge to the nation's currency sovereignty. Advertisement In the face of challenges from bitcoin and other privately-issued digital currencies such as Facebook's Diem, formally known as Libra, China's central bank has started to promote the use of a 'sovereign' digital yuan. But the digital yuan 'experiment' has for years struggled to find relevance as a form of payment in domestic and international transactions. Against this backdrop, Beijing's tolerance of and supportive attitude towards the stablecoin ambitions of Hong Kong is interesting to observe. Last month, the city's lawmakers passed the Stablecoins Bill , which will take effect later this year, paving the way for stablecoins backed by the Hong Kong dollar and other assets in the city. The green light comes at a time when the second administration of US President Donald Trump has adopted a friendly stance towards stablecoins, a type of cryptocurrency that maintains a fixed value by being pegged to a reference asset such as the US dollar. This photo illustration shows Chinese 100 yuan notes and US 100 dollar notes, in Beijing on April 8, 2025. Photo: AFP China is taking notice. While Beijing has yet to make any official comment on stablecoins, there are research papers making the argument that stablecoins, backed by US dollar assets, represent an extension of US dollar hegemony in the blockchain realm. Advertisement The world's top-10 stablecoins in terms of market capitalisation are all backed by US dollar assets, except Pax Gold that is backed by gold. There are also stablecoins backed by euro assets, but the market cap of these is tiny compared to US dollar ones.

US stocks end higher in spite of higher tariffs
US stocks end higher in spite of higher tariffs

RTHK

time32 minutes ago

  • RTHK

US stocks end higher in spite of higher tariffs

US stocks end higher in spite of higher tariffs Traders work on the floor of the New York Stock Exchange. Photo: AFP US stocks shook off a gloomy start to the week to close higher on Monday, with traders looking through the new trade uncertainty fuelled by President Donald Trump's recent tariff threats. On Friday, Trump unleashed a new fear into the financial markets, threatening to double steel tariffs from 25 percent to 50 percent. But by Monday afternoon, traders were adopting a more buoyant mood, with all three major indices on Wall Street closing higher. The Dow Jones Industrial Average closed up 0.1 percent at 42,305.48, while the broad-based S&P 500 finished up 0.4 percent at 5,935.94. The tech-rich Nasdaq Composite also rose, climbing 0.7 percent to 19,242.61 amid enthusiasm about the impact of AI on profits. "I think we are seeing a bit of continuation of the positive interpretation of the market from Nvidia's earnings," Angelo Kourkafas from Edward Jones told AFP, referring to the chip titan's recent strong results. "Artificial intelligence remains a powerful driver for earnings," he continued, adding that the financial markets had become "a little insensitive" to the constant tariff threats from the White House. "We are moving away from the worst case scenarios," he said. While the broader markets finished higher, the steel tariff news hit auto makers hard, with both Ford and General Motors finishing the day down 3.9 percent. (AFP)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store