ASEAN Summit Invites China & GCC Amid Tariffs Threat
The Southeast Asian trade bloc, ASEAN, has invited China and The Gulf Cooperation Council (GCC) states to a joint summit in Kuala Lumpur.
Malaysia, as the 2025 chair of the Association of Southeast Asian Nations (ASEAN), invited China and the GCC to partake in a joint summit in May 2025. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
However, Malaysia has insisted that the presence of non-members at the summit is not intended as a move against the United States but to ensure ASEAN’s strategic relevance in a multipolar world.
Natural Trading Partners
According to the International Monetary Fund (IMF), the combined GDP of the Arab Gulf states, comprising the Gulf Cooperation Council, stood at around $2.1 trillion (€1.96 trillion) in 2023.
The UAE and Saudi Arabia account for nearly three-quarters of the bloc’s economic output, which includes Qatar, Oman, Bahrain, and Kuwait,
ASEAN is one of the world’s fastest-growing economic regions, with a combined population of approximately 690 million. In 2023, its 10 member states reached a total GDP of nearly $3.8 trillion. Indonesia alone contributes a third of that as the group’s most populous nation.
ASEAN countries are already key trading partners for the European Union, ranking third after the US and China. Meanwhile, ASEAN’s top trade partners are China, the United States, the EU, and Japan.
Despite its economic influence, ASEAN is far from a homogeneous bloc. Member states include low-income nations like Laos and wealthy, highly developed city-states like Singapore. For instance, Malaysia’s per capita GDP is nearly twice that of Thailand.
Beneficiaries of Diversified Global Trade
Since the COVID-19 pandemic exposed vulnerabilities in global supply chains, many international companies have increasingly diversified their manufacturing investments away from China and into ASEAN nations.
However, ASEAN is also attractive to Chinese companies. Chinese automakers invested $5.4 billion there in 2023, nearly tripling the scale from 2015.
Sharon Seah, a senior fellow at the ASEAN Studies Center of Singapore’s ISEAS-Yusof Ishak Institute, believes closer cooperation between ASEAN and the Gulf states makes strategic sense.
By enhancing bloc-to-bloc cooperation with partners like the GCC, the EU, and the GCC, ASEAN hopes to keep multilateral trade open and free.
Controlling the World’s Most Important Trade Route
ASEAN countries of Malaysia, Indonesia, and Singapore border the Strait of Malacca. About 25% of the world’s trade volume passes this vital chokepoint. Additionally, 80% of oil shipments from the Middle East to China, Taiwan, South Korea, and Japan transit through this narrow waterway.
Malaysia aims to expand ASEAN’s cooperation with the Gulf Cooperation Council (GCC). Thanks to its vast oil and gas revenues, the GCC has adequate financial power to invest in technology and artificial intelligence.
ASEAN could tap on some of that investment for its growth, positioning its technological sector to attract investment from GCC sovereign wealth funds.
ASEAN a Future Hub of Global Trade
A recent study by Allianz Trade suggests that some ASEAN countries are well-positioned to boost their role in global trade.
Malaysia and Vietnam ranked second and third in the next-generation trade hubs, respectively. Indonesia came in fifth place. The United Arab Emirates, one of ASEAN’s potential new Gulf partners, took the Top spot in the ranking.
Currently, about 20% of ASEAN exports go to the United States. Given Washington’s increasingly belligerent trade policies, it is unsurprising that some ASEAN nations are looking to diversify their foreign policy and trade approach.
For example, Indonesia recently decided to join BRICS while advancing its roadmap to access the OECD. Malaysia is also seeking to join the BRICS group. However, the Trump administration views BRICS as a challenge to the global dominance of the US dollar and has threatened to impose 100% tariffs if the bloc attempts to “play games with the dollar.”
WHY ASEAN Invited the GCC
ASEAN invited the GCC states for the following reasons:
Economic Collaboration: ASEAN and GCC countries recognize the potential to boost economic ties. Their combined GDP is nearly $6 trillion, accounting for almost 6% of the world’s total. Trade volume between the two regions is about $110 billion. The GCC has invested over $14 billion in the ASEAN region, showing a foundation for deeper economic engagement.
Diversification of Partnerships: The summit reflects a mutual desire to diversify diplomatic and trade partnerships beyond traditional allies. Therefore, it allows both blocs to explore new economic opportunities and reduce overreliance on existing partners.
Formalizing Cooperation: The inaugural summit aimed to establish a formal mechanism for coordination and dialogue, leading to the adoption of the ASEAN-GCC Framework of Cooperation (2024-2028).
