ASEAN-Gulf United Against US Tariffs... China Also Lends Support

ASEAN's 10 countries, China, and the 6 countries of the Gulf Cooperation Council (GCC) from the Middle East gathered to strengthen economic cooperation and jointly respond to the US's high tariff policy.

These 17 countries, including Indonesia, Vietnam, and Thailand, held a trilateral economic summit on the 27th (local time) in Kuala Lumpur, the capital of Malaysia, and reached this agreement. Amid the chaos of US-centric policies and international trade order, they accelerated their strategy of diversifying diplomacy and economic cooperation by expanding regional cooperation.

■Accelerating Diversification Strategies of Participating Countries

They also emphasized the importance of multilateralism in response to US President Donald Trump's tariff policy.

This summit was led by ASEAN, which has a high export dependency, and expanded the coalition to include major oil-producing countries in the Gulf region, such as Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Qatar, along with China. It was conducted in the form of China's participation in the 2nd ASEAN-GCC Summit.

The aim is to broaden the scope of regional cooperation and establish a framework for complementary economic cooperation. ASEAN's influence has significantly expanded, and the summit between ASEAN and the GCC is the second since 2023, with China's participation for the first time. These countries aimed to activate regional trade and economic cooperation and jointly respond to the high tariff policy and unilateralism of the Trump administration in the US. They also expressed their intention to elevate regional community cooperation by building a multifaceted economic cooperation framework utilizing complementary economic structures in the medium to long term.

■Prime Minister Anwar "Aiming to Rebuild Partnerships"

Malaysia's Prime Minister Anwar Ibrahim, the chair of ASEAN this year, emphasized the significance of the participation of GCC countries and China, stating, "We aimed to rebuild partnerships in a multipolar reality," and "This summit will have a positive impact on the global community." Prime Minister Anwar has strengthened equidistant diplomacy with the US by enhancing relations with China, Russia, and others.

ASEAN's total trade with the GCC and China is expected to reach $943.9 billion (approximately 1,295 trillion won) by 2024, about twice the trade volume between ASEAN and the US, which is $472.7 billion (648 trillion won). Since 2017, the growth rate of trade between ASEAN and these two partners has also been nearly double that of the US, accelerating cooperation.

Japan's Asahi Shimbun evaluated on this day, "These three parties discussed a new world order excluding the US." In the long term, they aimed to establish an economic cooperation community excluding the US. They are laying the groundwork for long-term prosperity by expanding a complementary economic community that does not rely on the US.

■A Giant Market of 2.15 Billion People

ASEAN, the GCC, and China form a giant market with approximately 20% of the world's GDP and a population of about 2.15 billion. ASEAN sees China and the Gulf region countries as alternative markets and investors to increase exports amid the high tariff barriers of the US.

China, which has been hastening trade diversification, also portrays itself as a defender of free trade and has seized the opportunity to appeal to ASEAN, which has been hurt by the US's tariff bomb. Following President Xi Jinping's visit to Vietnam, Malaysia, and Cambodia from April 14-18, Premier Li Qiang, the second-in-command, visited Indonesia and Malaysia again within a month, highlighting China's focus on ASEAN.

For GCC countries like Saudi Arabia, amid the US's decreased understanding and interest in the Middle East, they attempted to strengthen relations with ASEAN and China as part of a strategy to diversify economic and diplomatic relations in preparation for a post-oil era.

Before the trilateral meeting, ASEAN and the GCC held a separate summit. They discussed a free trade agreement (FTA) between the two sides and the current situation in the Middle East, according to AFP and others.

Meanwhile, the leaders of ASEAN's 10 countries expressed concerns about the US's tariff policy and agreed on ways to respond jointly as a united front at the 46th ASEAN Summit held in Kuala Lumpur, the capital of Malaysia, from the 26th for two days. According to AFP and others, ASEAN's chair, Malaysia's Prime Minister Anwar, sent a request to President Trump to hold a US-ASEAN summit to discuss tariff issues.

ASEAN leaders have outlined their long-term goal 'Vision 2045' by 2045, setting goals such as becoming the world's 4th largest economy, an integrated single market, and a manufacturing hub. They also declared their commitment to "contributing to international peace and security through a rules-based multilateral system and compliance with international law."

june@fnnews.com Lee Seok-woo Reporterjune@fnnews.com Lee Seok-woo Reporter