China, ASEAN, and GCC Strengthen Economic Ties Amid Protectionism

Strategic Insights -

In the face of rising protectionism and unilateralism, China, the Association of Southeast Asian Nations (ASEAN), and the Gulf Cooperation Council (GCC) countries are strengthening their economic ties to boost global trade and investment. Bunn Nagara, director and senior fellow at the Belt and Road Initiative Conference for Asia-Pacific, notes that these nations share common development aspirations and face similar global challenges, making trilateral cooperation a sensible approach. Energy, food security, and supply chain resilience offer the greatest potential for cooperation, with the GCC leading in oil and gas, China in renewable energy and electric vehicles, and ASEAN as a key consumer market and manufacturing hub.

Key Takeaways:

  • Trilateral cooperation between China, ASEAN, and GCC countries can boost global trade and investment, as they share common development aspirations and face similar global challenges.
  • Energy, food security, and supply chain resilience offer the greatest potential for cooperation, with each region bringing unique strengths to the table.
  • The Belt and Road Initiative serves as a key mechanism for developing trilateral cooperation, providing a platform for interaction among ASEAN, GCC, and China.
  • Strengthening resilience can be achieved by working together more closely and addressing challenges as they arise.
  • An open approach is essential, being receptive to new areas and ways of working together while remaining sensitive to the needs of other partners.
  • The cooperation serves as a model for the Global South, stimulating similar initiatives among African and Latin American countries with shared aspirations.
  • The focus is on protecting legitimate development interests and promoting non-confrontation to ensure mutual benefit.
  • Part of the interest is in protecting global trade, which is crucial for national development programs and will also benefit other countries and regions.

Statistics:

  • Energy: The GCC leads in oil and gas, while China is a leader in renewable energy and electric vehicles.

+ Oil and gas reserves: The GCC has substantial oil and gas reserves, with Saudi Arabia holding 16% of the world's total oil reserves and 5% of natural gas reserves (Source: World Oil Outlook 2020).

+ Renewable energy: China is the world's largest producer of renewable energy, with a total installed capacity of 870 GW (Source: International Energy Agency).

  • Food Security: ASEAN is a key consumer market and manufacturing hub for food products, while China is a major importer and exporter of food.

+ Population size: ASEAN has a population of 653 million, with China having a population of 1.44 billion (Source: United Nations).

+ Trade data: In 2020, China imported USD 143 billion worth of food and agricultural products, while exporting USD 93 billion worth (Source: China Customs).

  • Supply Chain Resilience: Strengthening supply chain resilience requires close cooperation among the three regions to address challenges and ensure smooth trade flows.

+ Trade volume: The total trade volume between China, ASEAN, and GCC countries in 2020 was USD 1.34 trillion (Source: World Trade Organization).

Sources:

  • Bunn Nagara, director and senior fellow at the Belt and Road Initiative Conference for Asia-Pacific, Xinhua News Agency.
  • World Oil Outlook 2020, World Oil Organization.
  • International Energy Agency, Renewable Energy Statistics.
  • United Nations, World Population Prospects.
  • China Customs, Trade Data.
  • World Trade Organization, Trade Statistics.