Strengthening ASEAN-China Cooperation in the Face of Trade War
The Need for Bilateral Cooperation
The new wave of trade war triggered by US President Donald Trump’s policies has provided impetus to strengthen bilateral cooperation between ASEAN and China, said Malaysia China Business Council chairman Tan Sri Low Kian Chuan. He emphasized that policy makers of both sides can collaborate and strengthen crisis-response capabilities through engagements, fostering communication and information sharing between different agencies and stakeholders in ASEAN and China.
Resisting Protectionism and Deepening Economic Integration
Low highlighted that the risk of a full-blown trade war looming and causing ripple effects across the global economy makes it essential for like-minded countries in ASEAN and China to continue strengthening the international rules-based trading order, and to resist the rising tide of protectionism by strengthening regional collaboration and integration. He stated that Malaysia, as the chair of ASEAN, will engage in discussions with several member states to reach a collective agreement regarding the US reciprocal tariffs issue to ensure that the principle of fairness is upheld in international trade.
ASEAN-China Free Trade Area (ACFTA) 3.0
Low also highlighted that the signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 scheduled for this year will be a key priority for deepening regional economic integration. He emphasized that both sides must continue to emphasize that the relations between ASEAN and China would go to another level of holistic cooperation in almost all fields.
Strengthening Hotline Communication and Policy Coordination
Low suggested that China and ASEAN should strengthen hotline communication, strategic communication, as well as policy coordination and facilitation, including discussions on how to support each other and jointly cope with the impact of tariffs. He added that both China and ASEAN can adopt some form of tacit understanding, reach consensus, review regional cooperation strategies, strengthen the cooperation framework of China-ASEAN comprehensive strategic partnership, and promote China-ASEAN community with a shared future.
Economic Integration and Zero-Tariff Arrangements
Bioeconomy Corp chairman, Dr Lee Boon Chye, emphasized that ASEAN and China need to strengthen their economic integration by expanding zero-tariff arrangements, particularly in light of the anticipated "Trump 2.0" trade policies. He stated that around 60 per cent of ASEAN-China trade is already being conducted with zero tariffs, a result of progressive liberalisation under existing regional trade agreements.
Global South as a Promising Growth Potential
Dr Lee also opined that the global south provides promising growth potential for businesses in the future. He added that there are ways where ASEAN and China can cooperate even further to build a more prosperous future for both parties.
ASEAN-China Media and Think Tank Forum
The ASEAN-China Media and Think Tank Forum was opened by Deputy Prime Minister Datuk Seri Fadillah Yusof earlier today, with Communications Minister Datuk Fahmi Fadzil and Xinhua News Agency’s Editor-in-Chief Lyu Yansong among those present. The forum drew over 200 participants, including influential media leaders, representatives, senior government officials and experts from across the ASEAN region and China, to deepen engagement and collaboration in the ever-evolving media landscape.
Conclusion
In conclusion, the trade war triggered by US President Donald Trump’s policies has highlighted the importance of bilateral cooperation between ASEAN and China. The signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 and the expansion of zero-tariff arrangements are key priorities for deepening regional economic integration. ASEAN and China must continue to strengthen their hotline communication, policy coordination, and crisis-response capabilities to navigate the challenges posed by the trade war.
FAQs
Q: What is the significance of the ASEAN-China Free Trade Area (ACFTA) 3.0?
A: The signing of the ACFTA 3.0 will be a key priority for deepening regional economic integration and strengthening bilateral cooperation between ASEAN and China.
Q: What is the current percentage of ASEAN-China trade conducted with zero tariffs?
A: Around 60 per cent of ASEAN-China trade is already being conducted with zero tariffs, a result of progressive liberalisation under existing regional trade agreements.
Q: What is the potential growth market for businesses in the future?
A: The global south provides promising growth potential for businesses in the future.