Opinion: ASEAN-GCC-China collaboration signals growing demand for multilateralism

The Association of Southeast Asian Nations, commonly abbreviated as ASEAN, is a regional grouping of 10 states in Southeast Asia "that aims to promote economic and security cooperation among its ten members."

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The timing of Malaysia’s chairmanship of ASEAN in 2025 is fortuitous. Under Prime Minister Anwar Ibrahim, Malaysia is pushing for a neutral, trade-focused course, seeking economic cooperation with multiple nations while avoiding confrontation. Though there are exceptions, the overarching policy remains intact.

Similarly, the Gulf Cooperation Council (GCC), established in 1981 amid geopolitical tensions in the Middle East, has evolved from a regional security pact into a significant player in global energy markets. With vast reserves of hydrocarbons, the GCC now seeks greater economic diversification and long-term fiscal sustainability in light of the rise of new energy industries.

During the early 1990s, the U.S. sought to integrate these blocs into its sphere of influence, positioning itself as the uncontested global hegemon. However, over the past three decades, China has emerged as a major rival, challenging traditional powers not only in military and economic terms but also in technology.

Unlike certain Western powers, China does not carry the same history of foreign interventions. This makes it an appealing partner for many nations, offering an alternative model of engagement that contrasts sharply with approaches seen in the past. As global power dynamics shift, countries are increasingly noticing the contrast – a declining Western power that alienates its allies such as the European Union, Japan, and South Korea, versus a rising China that promotes globalisation and economic cooperation.

The symbolic duel between two economic titans - the United States and China. Elevated and tilted in opposing directions, the containers suggest a delicate balance, hinting at a global tug-of-war driven by trade policies, geopolitical strategies, and economic supremacy.

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Shaping a New Balance

ASEAN and the GCC are not seeking to replace one dominant power with another. Instead, they are focused on creating a new balance, where cooperation among regional powers reduces dependence on any single nation. China, aware of the risks of foreign entanglements, has intentionally avoided the aggressive tactics seen in other parts of the world, including economic coercion or military interventions. These approaches have often been ineffective, as demonstrated by situations like nuclear proliferation and ongoing control conflicts.

Moreover, actions by certain global powers have inadvertently strengthened rival nations, such as Russia, and may lead to a more nuclear-armed Middle East, underscoring the unpredictability of current global relations. These developments further destabilise the international order and contribute to the fragmentation of global trade systems.

Chinese President Xi Jinping and Russian President Vladimir Putin give a toast during a reception following their talks at the Kremlin in Moscow on March 21, 2023.

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In response to these shifts, regional blocs like ASEAN, the GCC, and China have distanced themselves from what is seen as self-destructive U.S. behaviour. These organisations are not formal alliances, but rather pragmatic collaborations aimed at increasing leverage against larger powers. The combined population of ASEAN, GCC, and China of over two billion people forms a massive consumer market. Additionally, the energy and commodity reserves within these regions, coupled with China’s manufacturing power and technological advances, particularly in renewables and electric vehicles, create a formidable economic force.

While ASEAN members may seek tariff relief on a bilateral basis, the bloc’s commitment to regional coordination remains strong, and this alignment is appealing to GCC members. The GCC, with its energy resources and growing interest in economic diversification, stands to benefit from closer cooperation with China, especially in the energy and technology sectors.

The recent actions by the U.S. have not only eroded trust among its allies but also shaken confidence in the U.S. dollar. A growing share of global trade is now being conducted in alternative currencies, and U.S. treasuries and bonds are losing appeal, with foreign assets at risk of seizure. These developments have raised concerns among Asian powers about the reliability of Western partners.

The future of a multipolar world remains uncertain, but the trends are clear. Regional and intergovernmental organisations will continue to emerge as new power centres, seeking to defend their interests and fortify themselves against external pressures. In the short term, such cooperation will help mitigate trade and supply chain disruptions, offering hope for greater stability and economic cooperation.