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Tariffs

South-East Asian Countries Face Pressure to Pick Sides in US-China Trade War

Strategic Insights

— 1 min read

South-east Asian countries are being pushed to choose between the world's two biggest economies, China and the US, as a result of the growing trade tensions between the two nations. Malaysian trade minister Zafrul Aziz warned that China is seeking parity with the US in trade negotiations, saying "whatever you give to the US, we want the same because whatever you give to the US is at our expense." Zafrul's comments were echoed by Singapore's trade minister, Gan Kim Yong, who stated that the economic decoupling of the US and China is putting pressure on countries in the region to pick one side over the other.

Key Takeaways:

  • Malaysian trade minister Zafrul Aziz warned that China is seeking parity with the US in trade negotiations, stating that "whatever you give to the US, we want the same because whatever you give to the US is at our expense."
  • Zafrul said that the economic decoupling of the US and China is putting pressure on countries in south-east Asia to pick one side over the other, citing the need to balance the concerns of both economies.
  • Singapore's trade minister, Gan Kim Yong, stated that the country has avoided choosing sides but is finding it harder to maintain ties with both the US and China as the divide between them grows.
  • Gan emphasized the importance of adopting positions on contentious geopolitical issues based on national concerns rather than siding with one country over another.
  • Chinese President Xi Jinping has embarked on a tour of Vietnam, Malaysia, and Cambodia to strengthen ties in the region.

Statistics:

  • 50% of global trade passes through south-east Asian countries (Source: Zafrul Aziz, Malaysian trade minister)
  • The US has imposed tariffs on $50 billion worth of Chinese goods (Source: BBC News)
  • China's President Xi Jinping has visited five south-east Asian countries in the past month, including Vietnam, Malaysia, and Cambodia (Source: South China Morning Post)

Sources:

  • Zafrul Aziz, Malaysian trade minister, as quoted in the Financial Times
  • Gan Kim Yong, Singapore's trade minister, as quoted in a UBS conference
  • "BBC News: US-China trade war" (no date mentioned)
  • "South China Morning Post: Xi Jinping's regional tour" (no date mentioned)

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