Ad Banner
Advertisement by Open Privilege

Southeast Asia’s dilemma in the US-China trade war

Image Credits: UnsplashImage Credits: Unsplash
  • Chinese scholar Zheng Yongnian warns Southeast Asian nations against aligning too closely with the US in the trade war, arguing it could isolate them from China and stall growth.
  • China positions itself as a key partner for ASEAN through trade and infrastructure investments (e.g., Belt and Road Initiative), while the US pushes "friend-shoring" to redirect supply chains.
  • ASEAN faces a delicate balancing act as member states navigate competing US and Chinese economic influences, with recent deals highlighting divergent regional strategies.

[WORLD] A prominent Chinese political scientist has cautioned that Southeast Asian nations could face economic stagnation and increased diplomatic isolation from China if they side too closely with the United States in the ongoing trade conflict. Zheng Yongnian, dean of the School of Public Policy at the Chinese University of Hong Kong, Shenzhen, argued that Washington’s backing of the region’s re-industrialisation is secondary to its primary goal of reshoring manufacturing to the US—unlike China, which he said is better positioned to genuinely support Southeast Asia’s development objectives.

Zheng's assessment reflects the nuanced geopolitical dynamics at play in the region, which has long served as a key nexus for global trade. With its strategic positioning and expanding economies, Southeast Asia has become increasingly vital as supply chains shift and the global search for new manufacturing bases intensifies.

Over the past two decades, Southeast Asian countries have significantly benefited from China’s economic ascent. Beijing's Belt and Road Initiative has driven massive investment into the region, funding key infrastructure such as ports, rail networks, and energy systems. This economic interdependence has deepened ties between China and ASEAN member states, making the region’s diplomatic positioning all the more delicate amid intensifying US-China rivalry.

Conversely, the United States has sharpened its focus on reducing dependency on foreign manufacturing by promoting policies aimed at returning production to American soil. While this may serve US economic interests, Zheng noted, it does little to advance Southeast Asia’s long-term ambitions to expand its manufacturing sectors and embed further into global production networks.

The escalation of the US-China trade dispute has only added to the strain. Retaliatory tariffs and shifting trade patterns have disrupted regional economies, leaving Southeast Asian countries vulnerable to economic headwinds and forcing them to make difficult strategic choices.

Zheng’s comments come at a time when the region is also contending with a host of domestic challenges, from political instability to the pursuit of sustainable development. Balancing these internal priorities with external geopolitical pressures will require deft diplomacy and strategic foresight.

As the geopolitical landscape grows more intricate, ASEAN nations face a critical juncture. How they navigate the competing pulls of the US and China will shape not only their economic trajectories but also the broader stability of the region.


Ad Banner
Advertisement by Open Privilege
Economy Singapore
Image Credits: Unsplash
EconomyApril 29, 2025 at 4:00:00 PM

Singapore strengthens social equity and global ties amid economic shifts

[SINGAPORE] Singapore remains steadfast in its mission to create a “society of opportunities” where citizens can achieve their ambitions, even as the world...

Economy
Image Credits: Unsplash
EconomyApril 29, 2025 at 3:00:00 PM

Shenzhen’s export slump drags down Q1 growth amid trade pressures

[WORLD] China’s southern tech powerhouse, Shenzhen, appeared to miss out on the momentum from the country’s first-quarter export surge, reporting a gross domestic...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 29, 2025 at 3:00:00 PM

Malaysia postpones tax expansion amid US tariff threats

[MALAYSIA] Malaysia has opted to delay a planned expansion of its sales and service tax (SST), offering a temporary reprieve to manufacturers facing...

Politics Malaysia
Image Credits: Unsplash
PoliticsApril 29, 2025 at 2:00:00 PM

Malaysia deepens ties with Italy and EU

[MALAYSIA] Malaysia is intensifying efforts to strengthen its diplomatic and economic relationships with Italy and the European Union (EU), aiming to bolster trade,...

Retail
Image Credits: Unsplash
RetailApril 29, 2025 at 1:00:00 PM

Amazon sellers retreat from Prime Day amid tariffs and rising costs

[WORLD] Amazon’s Prime Day, once a cornerstone sales event for third-party merchants, is losing favor among a critical segment of sellers. This year,...

Finance
Image Credits: Unsplash
FinanceApril 29, 2025 at 1:00:00 PM

HSBC launches $3 billion buyback after strong Q1 earnings

[WORLD] HSBC, Hong Kong’s largest bank, has announced a new US$3 billion share buyback following first-quarter results that exceeded analysts’ expectations. The move...

Economy
Image Credits: Unsplash
EconomyApril 29, 2025 at 12:00:00 PM

Asia urged to diversify trade and strengthen domestic demand amid global tariff wars

[WORLD] Asian nations must expand their trade networks and strengthen domestic consumption to withstand the ongoing global trade conflict, according to Asian Development...

Economy Europe
Image Credits: Unsplash
EconomyApril 29, 2025 at 11:30:00 AM

UK growth forecast slashed

[EUROPE] The UK's economic growth forecast for 2025 has been sharply downgraded, with multiple institutions citing the dual impact of escalating global trade...

Economy
Image Credits: Unsplash
EconomyApril 29, 2025 at 10:30:00 AM

Trump’s China tariffs threaten holiday shortages and economic turmoil

[WORLD] President Donald Trump's aggressive tariff escalation on Chinese imports has rattled both Washington and Wall Street for weeks. Now, its effects are...

Finance Malaysia
Image Credits: Unsplash
FinanceApril 29, 2025 at 10:00:00 AM

Bursa Malaysia steadies as foreign funds return and cybersecurity stocks shine

[MALAYSIA] Investors on Bursa Malaysia appeared to be catching their breath after recent gains, following a mixed performance on Wall Street overnight ahead...

Economy
Image Credits: Unsplash
EconomyApril 29, 2025 at 8:30:00 AM

Oil prices tumble on U.S.-China trade tensions

[WORLD] Crude oil prices have tumbled to their lowest levels in years as the intensifying trade war between the United States and China...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege