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The View | China’s trade tactics are winning out over US diplomacy and military might in Southeast Asia
- As the US seeks to increase its presence in Southeast Asia through diplomacy, China prefers to put its money where its mouth is with investment and trade deals
- The creation of the RCEP and rise in China-Asean trade to almost double the value of US-Asean exchanges suggest Beijing’s approach is working
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China succeeded in deepening ties with Singapore last month, signing 14 new deals at an annual bilateral cooperation meeting held on December 29.
Beijing has been active in Southeast Asia since the 1990s, becoming a dialogue partner of the Association of Southeast Asian Nations (Asean) in 1996. In November 2020, 10 Asean members signed the Chinese-led Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement involving several major powers, but with the notable absence of the US.
Certainly, the US remains a central geopolitical power, with allies in the Middle East, Asia, Europe and the Pacific. The absence of large military powers in Southeast Asia has also helped the US gain a geopolitical footing in the region.
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On the other hand, China has unswervingly bolstered production, trade and investments both in Southeast Asia and globally, evolving into a geoeconomic power by strengthening relations through economic partnerships and trade relations.
Barack Obama’s “Pivot to Asia”, rather than adopting an economic focus, relied more on a robust military approach aimed at containing China. Then came Donald Trump’s “America first” policy which saw the US exit the Trans-Pacific Partnership, damaging its political and economic relations with Southeast Asia.
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US President Joe Biden now faces an uphill struggle to correct course. Although high-level engagement has been initiated, a lot more must be done to regain the confidence of the region in the consistency and reliability of US policies. America’s firm stance against autocracies in Southeast Asia has also indirectly benefited China, which remains unbothered by humanitarian issues.
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