Latest news with #Asean-GCC-ChinaSummit
Sinar Daily
4 days ago
- Business
- Sinar Daily
Asean, GCC and China - A new power bloc of the global south
Malaysia, as Asean Chair this year, is hosting the maiden Asean-GCC-China Summit which is set to unlock immense potential for multilateral cooperation. 27 May 2025 10:32am Emir of Qatar Sheikh Tamim bin Hamad Al Thani (L) talks to Malaysia's Prime Minister Anwar Ibrahim as he arrives for a bilateral meeting ahead of the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit after the 46th Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur on May 27, 2025. (Photo by Mohd RASFAN / POOL / AFP) BEIJING - As the global economic uncertainty rages on following the United States' (US) sweeping tariffs, China sees the inaugural Asean-Gulf Cooperation Council (GCC)-China Summit in Kuala Lumpur today not merely as a diplomatic gathering but a pivotal moment in the rise of the Global South. For China, this tripartite meeting is far more than a symbolic gesture. It represents the emergence of a new economic and strategic axis, one that challenges traditional Western-dominated trade frameworks and offers an alternative vision of cooperative development. Personnel secure the vicinity of KLCC Park ahead of the 46th ASEAN Summit in Kuala Lumpur on May 25, 2025. (Photo by Jam STA ROSA / AFP) This was made evident when China's Foreign Ministry Spokesperson, Mao Ning, remarked last week that China looks to expand practical cooperation with Asean and the oil-rich GCC member states in various fields to leverage their respective strengths, pursue win-win results and defend common interests of the Global South. It would be a coming together of Asean's quest to foster integration within Southeast Asia, GCC's aim to reduce dependence on oil and diversify the economy, and China's Belt and Road Initiative focusing on global infrastructure development strategies. Malaysia, as Asean Chair this year, is hosting the maiden Asean-GCC-China Summit which is set to unlock immense potential for multilateral cooperation. The combined weight of Asean, GCC and China is certainly reshaping the global economic dynamics. Asean, now the world's fifth-largest economy with a collective gross domestic product (GDP) of over US$3.6 trillion (US$1=RM4.22), is not just a manufacturing hub but also a burgeoning consumer market of 700 million people. On Sunday, Malaysia's Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told a press conference that the collective Asean GDP is projected to grow at 4.7 per cent in 2025 from 4.2 per cent last year. Meanwhile, GCC, backed by its vast energy reserves and nearly US$2 trillion in sovereign wealth funds, is rapidly diversifying under ambitious plans like Saudi Arabia's Vision 2030. China, the world's second-largest economy with a US$18.6 trillion GDP, brings unparalleled industrial capacity, technological innovation and infrastructure expertise. Together, these three regions account for nearly a quarter of global economic output and a consumer base exceeding 2.1 billion people -- a force that could no longer be sidelined in global governance. What distinguishes this partnership is its foundation in mutual benefit rather than ideological alignment. Asean's youthful demographics and rich natural resources complement China's manufacturing and technological prowess, while GCC's financial capital and diversification goals align seamlessly with China's outward investment and green energy ambitions. Trade between these regions is already flourishing, with China-Asean trade reaching 1.71 trillion yuan (US$234.17 billion) in the first quarter of 2025, a year-on-year increase of 7.1 per cent. Meanwhile, China-GCC trade hit over US$288 billion in 2024, with Gulf states supplying 40 per cent of China's crude oil imports. Policy coordination is also accelerating. The China-Asean Free Trade Agreement 3.0 wrapped up last week expands cooperation in digital trade and sustainable development, while the ongoing China-GCC free trade talks promise to create one of the world's largest trade blocs. The summit serves as a platform to synchronise three transformative development strategies, namely China's Belt and Road Initiative, Asean's Connectivity Master Plan 2025 and the GCC's Vision 2030. At a time when Western economies are retreating into a protectionist mode, the Asean-GCC-China partnership offers a different model to build on economic resilience through diversification. Asean has already surpassed the United States and the European Union as China's top export destination in 2023, while Gulf investments in Chinese technology, such as Saudi Arabia's US$5.6 billion push into artificial intelligence, signal deepening ties beyond energy. The Digital Silk Road (DSR) initiative by China is further binding these regions together, with the country's cross-border e-commerce totalling 1.22 trillion yuan in the first half of 2024, up 10.5 per cent year-on-year. China and its partners are weaving a more interconnected and resilient economic fabric, one where development is shared, not monopolised. This is exactly what China stresses on a daily basis and is being reported in local media publications. Like Asean and the GCC, China's cooperation with Central and Eastern European Countries (CEEC) similarly demonstrate that its approach to global engagement is rooted in economic interdependence rather than coercion. The Asean-GCC-China Summit is certainly a proving ground for a future where the Global South sets the agenda and a definitive statement that the world's economic or perhaps strategic centre of gravity is shifting. In Beijing's strategic calculus, this is seen not just as a summit but the foundation of a new world order, one where the Global South takes its rightful place at the table. Chinese Premier Li Qiang is scheduled to attend the summit on the invitation of Prime Minister Datuk Seri Anwar Ibrahim. This is the second official visit for Li to Malaysia since assuming the post in March 2023. He visited Malaysia in June last year in conjunction with the 50th anniversary of China-Malaysia diplomatic ties. - BERNAMA
The Star
11-06-2025
- Business
- The Star
Implications of Asean-GCC-China cooperation
AMID growing trade tensions and the rise in protectionist policies on the global landscape, the inaugural Asean-GCC-China Summit, hosted by Malaysia as Asean Chairman for 2025, has drawn significant international attention. This gathering marks yet another step forward in Global South cooperation with implications for both regional development and global growth.
Sinar Daily
10-06-2025
- Business
- Sinar Daily
Asean-GCC-China Summit: A new chapter in Global South cooperation
This gathering marks yet another step forward in Global South cooperation, with implications for both regional development and global growth. By HUI FAN 10 Jun 2025 05:43pm Amid growing trade tensions and rise in protectionist policies on the international landscape, the inaugural Asean-GCC-China Summit, hosted under Malaysia's Asean chairmanship for 2025, has drawn significant international attention. - BERNAMA FILE PIX Amid growing trade tensions and rise in protectionist policies on the international landscape, the inaugural Asean-GCC-China Summit, hosted under Malaysia's Asean chairmanship for 2025, has drawn significant international attention. This gathering marks yet another step forward in Global South cooperation, with implications for both regional development and global growth. Foundations for partnership The three parties share deep historical and economic ties. Centuries ago, the Silk Road facilitated cultural and commercial exchanges among their peoples. Today, China remains a pivotal trade partner for both Asean and the GCC. Recent advancements, such as the full conclusion of China-Asean Free Trade Area 3.0 negotiations, underscore ongoing efforts to deepen economic integration. These longstanding relationships, nurtured through bilateral and multilateral frameworks, provide a robust foundation for expanded cooperation. Shared vision for inclusive growth As advocates for open markets, the three parties reaffirmed their commitment to multilateralism during the summit. The event highlighted a shift in Global South nations from passive participants to proactive contributors in shaping international economic frameworks. Discussions underscored the importance of a rules-based global trading system, one that prioritises equitable development over zero-sum competition. This vision aligns with broader calls for inclusive globalisation that benefits all. Complementary strengths Each region brings unique advantages to the table: Asean's youthful demographics and natural resources, the GCC's energy resources and financial capital, and China's vast consumer market and manufacturing prowess. By leveraging these complementary strengths, the partners will benefit from reduced energy and resource costs, accelerated logistics, and more efficient financial services. These synergies will enhance all three parties' competitiveness and resilience while enabling more secure and sustainable development, which are indispensable for navigating challenges in today's volatile global markets and maintaining growth amidst trade uncertainties. Amid growing trade tensions and rise in protectionist policies on the international landscape, the inaugural Asean-GCC-China Summit, hosted under Malaysia's Asean chairmanship for 2025, has drawn significant international attention. - BERNAMA FILE PIX Synergy in scale: 1+1+1>3 The trilateral cooperation has already registered positive progress. Chinese Premier Li Qiang announced at the Summit that China has decided to offer five-year multiple-entry visas to eligible applicants from Southeast Asian countries for business and other purposes, and to effectively give all GCC countries visa-free status. And with a regional business council in conception, the three parties have charted a united course for cooperation in areas including economic integration, connectivity, energy security and sustainability, digital transformation and innovation, food and agriculture and people-to-people exchanges. Collectively, Asean, China and the GCC account for nearly a quarter of the world's population and global GDP. Their collaboration signals a growing preference for cooperative and open regionalism in addressing shared challenges, such as trade disputes and supply chain disruptions. By improving infrastructure connectivity and streamlining trade, this partnership could foster synergies that multiply rather than simply add their individual strengths. A model for South-South cooperation Amid ongoing tariff and trade wars, the best way to navigate the current difficulties is to seek strength through unity. Through the practice of cross-regional cooperation, the three parties have demonstrated that the Global South can collectively counteract the adverse impact of unilateral tariffs by exploring new trade and investment opportunities, diversifying trade partners, and reducing reliance on traditional markets. The three parties' connected market, one of the world's largest intra-regional markets, will also allow other countries to share more benefits, and inject much-needed certainty into the global economy. By pooling together the three important forces in the world, this innovative, inclusive and pragmatic model represents a shared commitment to the rules-based multilateral trading system with the WTO at its core, and marks a concrete step toward a peaceful, prosperous and equitable future. A powerful boost to globalisation In an era of interconnected economies and shared global challenges, globalisation retains its transformative potential—but only if nations choose collaboration over isolation. As an innovative cooperation mechanism among Global South partners, the Asean-GCC-China Summit demonstrates how diverse regions can align interests to strengthen multilateral frameworks and advance equitable trade. The Summit's success sends a clear message: Solidarity doesn't require uniformity. It thrives when nations bridge divergences through structured cooperation. By prioritising dialogue and economic interdependence, countries can transform differences into opportunities while fostering shared progress. In an uncertain world, such collaboration isn't just idealistic—it's the cornerstone of collective resilience and a more equitable future. Hui Fan is a Beijing-based observer of international affairs. The views expressed in this article are her own and do not necessarily reflect those of Sinar Daily.
The Star
04-06-2025
- Business
- The Star
Asean-GCC-China: Building a resilient trilateral trade architecture
If procrastination is the thief of time, then pussyfooting around the Asean-GCC-China Summit agenda might well be wanton heedlessness! Indeed, Asean must lead, not wait, because Malaysia is well positioned to set that agenda. While the Kuala Lumpur Declaration on Asean 2045 outlines an ambitious vision – a developed Asean that is the epicentre of growth in the Indo-Pacific – this aspiration won't come to pass in isolation. As Prime Minister Datuk Seri Anwar Ibrahim said, Asean's journey 'is a story of cooperation across borders, dialogue across differences and hope across generations.'
New Straits Times
04-06-2025
- Business
- New Straits Times
ASEAN-GCC-China: Building a resilient trilateral trade architecture
If procrastination is the thief of time, then pussyfooting around the Asean-GCC-China Summit agenda might well be wanton heedlessness! Indeed, Asean must lead, not wait, because Malaysia is well-positioned to set that agenda. While the Kuala Lumpur Declaration on Asean 2045 outlines an ambitious vision – a developed Asean that is the epicentre of growth in the Indo-Pacific – this aspiration won't come to pass in isolation. As Prime Minister Anwar Ibrahim said, Asean's journey "is a story of cooperation across borders, dialogue across differences and hope across generations." Rising as an engine of global growth hinges on how Asean diversifies its economic linkages, including with the GCC and China. The Joint Statement of the trilateral Summit and the Asean-GCC Joint Declaration on Economic Cooperation mark a significant step forward. Both documents lay the foundation for a convergence that could reshape the region's trade architecture and deepen existing economic synergies, through three interconnected tracks: the Asean-China Free Trade Area (ACFTA) 3.0 Upgrade, the Asean-GCC FTA, and indirectly, the China-GCC FTA. Each agreement is progressing at a different pace. The ACFTA 3.0 is nearing completion, incorporating new-generation chapters on digital trade, competition, green economy and regulatory coherence. On the other hand, the China-GCC FTA, long under negotiation, is close to finalisation. Meanwhile, the Asean-GCC FTA is at the feasibility study stage, with negotiations to be launched soon. It gives Asean and the GCC a rare opportunity to draw on the structure and substance of the other two negotiations and design an agreement that bridges the earlier two initiatives. The sequencing could, in fact, work tremendously in favour of Asean, positioning it as the central node in a new trade framework. What is often overlooked is that these are not discrete bilateral tracks. Rather, they weave a coherent structure connecting Southeast Asia, the Gulf and China, three of the world's most dynamic economic blocs. Such a scheme could lend further credence to the rules-based multilateral trading system, which, in Anwar's words, is being subjected to "the onslaught of arbitrary imposition of trade restrictions." It would also provide greater certainty and predictability for investors, and institutionalise Asean's centrality in the evolving global trade order. The economic logic is compelling, and the numbers are convincing. The GCC was Asean's seventh-largest trading partner in 2022, with trade totalling US$130.7 billion, and is projected to grow at 30 per cent annually. Asean-China trade surpassed US$722 billion in 2022, making China Asean's largest trading partner for the past 14 consecutive years. These relationships already run deep. What is missing is strategic coherence, something the trilateral FTA configuration could decisively address. Woven into such an arrangement must be substantial commitments in key growth sectors such as Islamic finance, digital economy, and renewable energy, which offer mutual benefits and long-term dividends. Introducing them explicitly into such an FTA would mark a refreshing departure from conventional trade accords, not to mention, create a more innovative partnership. Naturally, working together on currency settlements, cross-border payments, and sovereign wealth fund linkages could further strengthen financial resilience. Malaysia, as Asean Chair, has already taken the lead. We are pushing for the early conclusion of ACFTA 3.0, supporting a clear timeline for Asean-GCC FTA negotiations, while advancing the formation of a permanent mechanism that would coordinate the multiple trade tracks strategically. Additionally, setting up a regional business council could ensure private sector alignment, enabling businesses to benefit from this evolving topography. While some noted the absence of several GCC Heads of State at the Summit, the GCC was nonetheless robustly and adequately represented, underscoring institutional earnestness. Premier Li Qiang's attendance, meanwhile, is a clear signal of China's commitment. If a picture paints a thousand words, then the appearance of Asean leaders being flanked by GCC leaders, clad in traditional Arab attire, on one side, and Chinese leaders on the other, does make for amazing optics! Granted, while faith may move mountains, looks alone won't. But add in the substantive discussions and professed undertakings, we are looking at a level of engagement that must perforce inspire Asean to seize the moment. The coming decade will not be shaped by more of the same. It will be shaped by those who can integrate across fault lines, build resilient frameworks, and champion multilateralism with a powerful sense of purpose. A trilateral trade architecture linking Asean, the GCC and China is not just about trade flows. It is a strategic bet on a more cohesive, rules-based and opportunity-rich regional order. The ball's in Asean's court. And Malaysia, as Chair, must hit it!
