ASIATODAY.ID, JAKARTA – ASEAN has invited China and Gulf countries to attend a summit in Kuala Lumpur, Malaysia in May.
Malaysian Prime Minister Anwar Ibrahim on Monday, March 10, emphasized that the presence of these non-ASEAN countries was not a move against the United States.
Anwar emphasized that the move was aimed at ensuring ASEAN’s strategic relevance in a multipolar world.
However, the plan to form a trade alliance between ASEAN, China, and Gulf countries has the potential to trigger a negative reaction from Washington. This is because many ASEAN countries, Gulf countries, and China have a trade surplus with the US.
US President Donald Trump is known for using aggressive trade policies. Trump even threatened to impose high tariffs on countries that are considered detrimental to US economic interests.
Economically, the Gulf states have a combined GDP of around $2.1 trillion in 2023. Saudi Arabia and the United Arab Emirates account for nearly three-quarters of that total. Meanwhile, ASEAN has a GDP of around $3.8 trillion and a population of around 690 million.
Indonesia is the largest economy, accounting for a third of the bloc’s GDP. ASEAN is also the European Union’s main trading partner, ranking third after the US and China.
Trade cooperation between ASEAN and the Gulf states is still relatively low, but has great potential for growth. ASEAN hopes to keep multilateral trade open and free by strengthening cooperation with the EU and the Gulf states. Currently, around 20% of ASEAN’s exports go to the US.
However, Washington’s increasingly aggressive trade policies are pushing ASEAN countries to diversify their trading partners. (AT Network)
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