ASEAN must forge its own narrative, avoid US-China rivalry – Analyst

KUALA LUMPUR: ASEAN should not get caught up in the competition between the United States (US) and China, which is no longer just about trade conflicts.

AI Brief

ASEAN's Own Path: ASEAN should avoid the US-China rivalry and focus on its own development narrative.
US-China Power Struggle: The US sees China's rise as a threat, leading to tariffs and increased tensions.
Tariff Impacts: US tariffs on China could hurt both economies and worsen their relationship.

Li Ka Sing Professor of Economics and Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, Prof. Danny Quah said that ASEAN needs to bring its own development narrative that does not lead to competitive and confrontational perspectives.

"The US feels that China's rise will lead to a rival hegemonic power, which will restrict the US's freedom to act in this region (Asia).

"This is a consideration that has nothing to do with trade, but rather with the competition between the world's major powers.

"ASEAN need to set its own narrative that takes (the bloc) out of that competition. If it is possible, we can also help the US and China understand each other better, so they do not see their bilateral relationship as a confrontation," he said during the Dialog ASEAN25 programme on Thursday.

Beginning 1st February, the US administration under US President Donald Trump imposed a 10 percent tariff on Chinese goods. This move was part of a broader strategy that also included 25 percent tariffs on imports from Canada and Mexico.

This move will add to the burden on China's already affected economy, as the US is the most important export market for the country.

However, tariffs will also have an impact on the US, potentially causing price increases that could trigger inflation—something Trump wants to avoid.

Beijing, on the other hand, might consider not only imposing tariffs on US products but also taking targeted retaliatory measures, such as restricting raw material exports or increasing investigations into US companies operating in China.

Overall, the relationship between the two major powers is expected to continue to deteriorate as a result of these actions.