US offers US$150 million development package to Asean countries on first day of summit

The United States has offered more than US$150 million to Asean countries for initiatives including maritime cooperation and clean energy as Washington seeks to advance its position in the wider geopolitical competition with China.

The announcement was made on Thursday as the US-Association of Southeast Asian Nations summit began in Washington, where US President Joe Biden is hosting his counterparts from the 10-member bloc.

The Biden administration said the largest distribution would be US$60 million to “promote a free and open Indo-Pacific” – a phrase Washington has used to assert maritime rights, including military exercises, in a region where China and at least four Asean members have overlapping sovereignty claims in the South China Sea.

The money will allow the United States Coast Guard to assign more resources to the region for training and security cooperation, the White House announcement said. The US Coast Guard will also send an attaché to the US mission to Asean, and work with the State Department on new initiatives to fight illegal fishing activities.

Ali Wyne, an analyst on US-China relations at the Eurasia Group, said Washington’s efforts to invest heavily on maritime issues was a natural way to engage the group.

“With Asean member countries such as Malaysia and Vietnam voicing growing concerns over China’s claims and activities in the South China Sea, increasing funding for maritime security cooperation is a natural way for Washington to strengthen ties with them,” he said.