Southeast Asian leaders meet to strengthen China, Gulf ties and counter Trump tariffs

Southeast Asian leaders began a two-day summit in Kuala Lumpur on Monday to work out trade deals with China and Gulf nations, as they face growing pressure from U.S. President Donald Trump’s new tariff hikes.

The Association of Southeast Asian Nations (Asean) brought together its ten member states in an attempt to protect their economies, just as Trump’s White House ramps up duties on exports from the region.

According to information provided by Bloomberg, the talks are focused on getting ahead of the fallout caused by Trump’s latest tariff decisions. China sent Premier Li Qiang to lead its delegation. Gulf Cooperation Council countries including Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and the United Arab Emirates are also in the room. But not a single official from the U.S. or its Western allies showed up.

China’s presence grows as U.S. skips meeting

For Malaysian Prime Minister Anwar Ibrahim, hosting this summit is about drawing in trade from nations sitting on big cash surpluses. With China warning other countries not to sign deals that might hurt its interests, Asean leaders are walking a thin line between two superpowers. “There is no substitute for the United States,” said Shahriman Lockman, an analyst at the Institute of Strategic and International Studies in Malaysia. “Yes, we talk about diversification and autonomy. But let’s not kid ourselves — there is no real alternative in sight.”

Still, trade numbers show that the U.S. is already falling behind. China’s trade with Asean hit $982.3 billion in 2024, while the U.S. only managed $476.8 billion, most of it imports from the region. That gap is now at the center of every private conversation inside the summit hall.

Recent visits by Chinese President Xi Jinping to Vietnam, Malaysia, and Cambodia included pitches for what he called an “Asian family,” a message aimed directly at countering the U.S. push to isolate China. Meanwhile, Indonesia joined the BRICS bloc earlier this year, and Malaysia, Vietnam, and Thailand have all been added as partner nations. That deepens economic ties with both China and Russia, giving Southeast Asia more options if Trump’s tariffs grow even harsher.

Trade talks and regional conflicts collide at summit

At the summit, Malaysia’s Communications Minister Fahmi Fadzil told reporters the country is open to doing business with anyone. “I see this as a very good opportunity for us to show that Malaysia is a neutral country that wants to trade with any country that would like to trade with us,” he said.

Inside the U.S., officials from several Southeast Asian countries are trying to negotiate with Trump’s administration one-on-one to avoid the steepest tariffs. A bloc approach, led by Malaysia, was already rejected, according to local media. The hope is that separate deals could still buy them time.

But those efforts are shaky. Singapore’s Deputy Prime Minister Gan Kim Yong said Asean is working to improve an existing trade agreement. Though over 90% of goods in the region already move tariff-free, Gan admitted that wouldn’t be enough. “These are encouraging, but it doesn’t mean that the trouble is over,” he said.

Asean also just wrapped up negotiations with China to upgrade their free trade agreement. The new version includes chapters on crypto-related digital sectors, clean energy, and small and medium-sized businesses, all of which are expected to boost cross-border movement of both money and services.

But trade isn’t the only thing being discussed. The military crisis in Myanmar is getting attention too. Leaders plan to hold side talks on how to deal with the country’s civil war, which has dragged on with no resolution. There’s also pressure on Anwar to say something about the war in Gaza. He said last week he would “probably touch on” the issue and call for a ceasefire, while using the summit to point out the growing divide between richer nations and developing countries in the Global South.

That said, expectations are low. Gregory Poling, a senior fellow at the Center for Strategic and International Studies, told reporters: “Despite rhetoric from the Malaysian government as chair, there has been very little evidence of an Asean effort here. The stakes are actually pretty low.”

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