ASEAN, GCC and China Hold Inaugural Summit in Malaysia
From 27 to 28 May 2025, ASEAN, GCC and China held the inaugural summit in Kuala Lumpur, Malaysia. Taking place in the context of a world upturned by a tariff tsunami, the Summit aimed to ‘chart a path toward a peaceful, prosperous, and just future.’ The Trilateral came right after the 2nd ASEAN-GCC Summit and the 46th ASEAN Summit.
On the agenda was the upgrading of the ASEAN-China Free Trade Agreement (#FTA) and the conclusion of the GCC-China FTA. The three Parties have a combined population exceeding 2 billion and cumulate a GDP of nearly USD 25 trillion.
“ASEAN, GCC and China form a natural partnership as the three are mostly complementary. GCC has lots of money, China has comprehensive capacity, and ASEAN represents a sizeable emerging market.”
In his welcome address, Malaysian PM Anwar Ibrahim clarified that ASEAN was not tilting toward China, but remain committed to a ‘balanced engagement’ with all major powers, including the USA.
Chinese Premier Li Qiang reiterated that Beijing is ready to work with ASEAN and GCC ‘on the basis of mutual respect and equality.’ China is willing to align development strategies, reinforce coordination of macro-economic policies, and deepen collaboration on #industrialization.
The GCC expressed interest for tighter economic integration via enhancing #connectivity and #EnergySecurity. GCC will look into funding the construction of joint industrial zones and logistics hubs in ASEAN to foster linkages between the Strait of Malacca to the Arabian Gulf.
Total trade between ASEAN and GCC reached USD 63 billion in 2024, ranking GCC as the 5th largest trading partner of ASEAN. ASEAN is the largest trading bloc for China with nearly USD one trillion in trade, ahead of the EU and LatAm. As for GCC, trade volume with China reached USD 288 billion in 2024, right behind the AU.
In terms of #FDI, GCC injected USD 5 billion into ASEAN in 2023, of which USD 1.5 billion was directed to Malaysia alone. However, US, China and Singapore and EU are still the major sources of FDI into Malaysia so far.
Cumulatively, the USA remains the largest source of FDI into ASEAN with investments totaling USD 480 billion in 2023, almost double the combined US investments in China, Japan, South Korea and Taiwan.
Over recent years, China has been stepping its involvement in ASEAN. On the Malay Peninsula, China is promoting the East Coast Railway Link which will ultimately link Singapore, Malaysia, Thailand, Cambodia, and Vietnam to Kunming City in China. In Indonesia, China has investment heavily in #Nickel mining and processing.
China has also been delocalizing its manufacturing to ASEAN countries to take advantage of lower labor costs. Moreover, these overseas industrial parks have allowed China to work around certain tariff barriers.
To summarize the common views arrived at during the Summit, the Parties issued a Joint Statement based on a ‘Convergence of Civilizations.’ In contrast to the recent Trump’s Gulf tour, no mega deals were announced but a positive vibe emanated from the meeting.
