Gulf States and China Take Lead at ASEAN Summit Amid U.S. Trade Tensions

China and the Gulf Cooperation Council (GCC) took center stage at the ASEAN summit in Kuala Lumpur this week, using the platform to forge a unified front on trade and security with Southeast Asia while asserting themselves as alternative global leaders amid uncertainty over U.S. economic policies.

In a joint statement, the 10 ASEAN nations, China, and the six GCC members vowed to work “hand in hand to unleash the full potential of our partnership,” with particular focus on finalizing a GCC-China Free Trade Agreement and enhancing the ASEAN-China trade area.

Malaysia’s Prime Minister Anwar Ibrahim highlighted the bloc’s collective strength, noting that the ASEAN-GCC-China grouping accounts for $24.87 trillion in GDP and 2.15 billion people. “This scale offers vast opportunities to synergise our markets,” he said.

China’s Premier Li Qiang echoed this ambition, pledging to align development strategies and deepen industrial collaboration between the regions.

China Fills U.S. Void as Gulf Influence Grows

With President Donald Trump threatening sweeping new tariffs, many Asian economies are rethinking their dependence on U.S. trade. Former Malaysian ambassador Mohamed Nazri bin Abdul Aziz noted that China is “quickly filling up the vacuum,” while the Gulf countries are rising as “very rich” strategic partners.

In 2024, ASEAN-GCC trade reached $63 billion, and Gulf foreign direct investment in ASEAN totaled $5 billion—with $1.5 billion going to Malaysia alone. GCC is now ASEAN’s fifth-largest external trade partner.

Despite deepening ties with Beijing and the Gulf, Anwar dismissed claims of bloc realignment: “We remain committed to balanced engagement with all major powers, including the U.S.” Analysts said the summit gave China a rare spotlight “without the U.S. in the room.”

The summit also reaffirmed ASEAN’s geopolitical tightrope: embracing trade diversification while preserving its traditionally non-aligned stance.