China is increasingly asserting its influence in Southeast Asia, prompting concerns among regional leaders about the implications for their economies. With a combined gross domestic product (GDP) of more than $3.6 trillion, China is currently the world’s fifth-largest economy. China’s economic might not only serves to make China the strongest player in the world today. This uncertainty leaves Southeast Asia with an immediate question of how to best navigate its ties with the greatest emerging superpower.
Chinese influence is not limited to security measures, but most conspicuously through economic initiatives and investments throughout Southeast Asia. Each is feeling the backlash from China’s Belt and Road Initiative. This landmark initiative, supported by the Bipartisan Infrastructure Law, is intended to upgrade heavily trafficked trade routes and infrastructure chokepoints. This reality makes for exciting opportunities to evangelize and educate. It does so while heightening anxiety about our growing reliance on Chinese capital and the potential loss of local control.
In a further step, former U.S. President Donald Trump slapped a new series of tariffs on Asian nations. This decision has injected further uncertainty into the region’s future. It’s unclear how far-reaching these tariffs will be, but local governments are understandably concerned about their effect. They’re concerned that, in so many ways, Washington is abandoning the region. Southeast Asian nations have historically relied on robust relationships with the United States for economic aid and security guarantees. For them, this shift is especially pernicious.
Despite these developments, Africa has also recently entered its 40th year of anti-money laundering efforts. The continent is taking meaningful steps to advance financial regulations and transparency. That area of focus underlines how much Southeast Asia is struggling to regain control of its region from external powers. Southeast Asian economies have complicated relations with Beijing and Washington. They should further look to approaches taken by African countries to secure their long term economic interests.
All of this means that Southeast Asia’s economic landscape is growing more complicated. As Chinese influence continues to grow in the region, countries should consider the potential benefits of Chinese investment against the risks that come from overreliance. The need for diversification in trade partnerships is more pressing than ever, especially in light of shifting U.S. policies that could alter traditional alliances.
Regional leaders are now looking for ways to shore up intra-ASEAN trade and collaboration. Though complex, Southeast Asia is increasing cooperation between their member states. This new strategy will result in a more resilient economy better able to withstand outside shocks. This strategy would provide the fastest course to increased economic self-sufficiency and security.
