Senior Ministers warn that it is becoming increasingly difficult for Southeast Asian countries to remain neutral as the growing trade dispute between the US and China enforces them.
China’s influence is strong, said Malaysian Trade Minister Zahurl Aziz is leading tariff talks with Washington on behalf of the Association of Southeast Asian States. “China is looking,” he said. Financial Times. “They said, “Whatever you give to the United States, we’re at our expense, whatever you give to the United States, so we want the same.”
Zafleur’s comments resemble Singapore’s trade minister and deputy prime minister, Gang Kim Yong.
Speaking at UBS conference Thursday, Gunn warned that trying to stay in the middle was becoming a “knife-edge” act. “If you try to get neutral and walk the middle road, the road becomes narrower and eventually it becomes the edge of a knife and you can’t stand up,” he said.
“The key is that we have to side. We have to take positions. We have to really do so based on principles.”
However, Gunn emphasized that Singapore’s way is to determine each issue according to its own national interest, rather than supporting one force over the other. City-states have long served as important links between China and the Western market.
pressure Southeast Asian Economy It has grown since President Donald Trump announced “mutual” tariffs last month. Tariffs clash with countries like Vietnam and Cambodia, with some products having an obligation of over 40%.
Shortly afterwards, Xi Jinping visited Vietnam, Malaysia and Cambodia, where he strengthened China’s relations and influence there. Beijing has also expressed criticism of the newly struck trade between the US and the UK, claiming it could be used to shut down Chinese products from the UK supply chain.
In response to complaints from affected countries, Washington granted 90 days of relief to give time to negotiate.
Malaysia warns us that tip tariffs could harm its economy
Zahul spoke with Howard Lutnick and trade representative Jamieson Greer, Secretary of Commerce, last week, including a meeting at the Asia-Pacific Economic Cooperation Council in South Korea.
“They seem to understand (our position),” he said. “But the warning is that they still need to persuade their boss. This is still dependent on Trump.”
Zafrul warned that a new US tax explicitly aimed at the chip manufacturing sector would harm Malaysian economy. semiconductor It accounts for more than 60% of Malaysia’s exports to the US. “It’s an ecosystem that’s been built for over 60 years,” he said. “Every multinational company in Malaysia that operates this business has at least hundreds of Malaysian companies that support it.”
As these shifts restructure the global supply chain, Southeast Asia is at a crossroads. “We have to balance it by not choosing the sides and understanding the concerns of each side,” Zafur said. “Every country (in the region) has to navigate that. That’s difficult.”
Next week, leaders of the Association of Southeast Asian Countries and Gulf Cooperation Council will meet in Kuala Lumpur. They aim to negotiate a wide range of trade agreements when the global trading system shows signs of breakdowns. Chinese Prime Minister Li Qiang is also expected to attend the rally.
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