How Asean can loosen dependence on US, China amid trade war fallout

Regional ministers pose for a group photo during the Asean Economic Ministers’ Retreat in Manila on Friday. Photo: EPA

As trade tensions and new US tariff investigations rattle global supply chains, Southeast Asian economies are looking to broaden their options, but analysts say the region’s deep links with the US and China mean any shift will be gradual rather than a clean break.

The disruption could actually work in Asean’s favour, accelerating supply-chain diversification and shifting more manufacturing to the region from markets such as Europe, India and the Middle East, they say.
Economic ministers from the Association of Southeast Asian Nations said this week the bloc would keep markets open and deepen regional cooperation as geopolitical tensions, protectionist policies and global conflicts affect trade.

“We will continue to work closely with industry stakeholders and external and development partners to strengthen and sustain business and investors’ confidence in Asean, while further reinforcing regional supply chains through the implementation of relevant and binding Asean agreements,” they said in a statement from the Asean Economic Ministers’ Retreat in Manila on Friday.

Philippine trade secretary Cristina Roque speaks during the Asean retreat on Friday. Photo: Reuters
Philippine trade secretary Cristina Roque speaks during the Asean retreat on Friday. Photo: Reuters

The bloc was pushing for the timely ratification and implementation of an upgraded Asean trade agreement that would allow greater concessions for goods traded among member states, as well as the signing of a framework that would “support deeper digital integration, trusted cross-border data flows, and greater participation in the regional digital economy”, they said.