IRIA News

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Leaders from the Association of Southeast Asian Nations (ASEAN), China, and the Gulf Cooperation Council (GCC) convened in Kuala Lumpur, Malaysia, on May 27, 2025, for their first-ever trilateral summit, aimed at strengthening investment ties and forging a united economic front amid U.S. tariff pressure.

Held on the second day of ASEAN’s annual summit, the meeting marked a significant step in the evolution of South-South cooperation and economic diversification strategies.

The gathering brought together leaders from three of the most dynamic and strategically significant regions in the developing world, Southeast Asia, the Gulf, and China, to explore new pathways for collaborative economic growth.

Strategic Realignment

Malaysian Prime Minister Anwar Ibrahim, who hosted the summit as ASEAN’s current chair, opened the session with a stark assessment of the global economic landscape. “I believe the ASEAN-GCC partnership has never been more important than it is today, as we navigate an increasingly complex global landscape marked by economic uncertainty and geopolitical challenges,” he said.

Citing the ripple effects of U.S. unilateral tariffs and a fraying multilateral trade system, Anwar emphasized the need for stronger cross-regional economic cooperation. “A transition in the geopolitical order is underway,” he noted in pre-summit remarks. “The global trading system is under further strain, with the recent imposition of U.S. unilateral tariffs.”

The summit takes place amid growing discontent with U.S. trade practices, particularly the Trump administration’s sweeping tariffs that have hit six ASEAN members with levies ranging from 32 to 49 percent. While a temporary 90-day suspension has eased tensions, the unpredictability of U.S. policy has fueled interest in alternative economic partnerships.

“While proceeding with bilateral negotiations, the consensus rose to have some sort of understanding with ASEAN that decisions should not be at the expense of any other country,” Anwar told reporters. “So we will have to protect the turf of 650 or 660 million people.”

China: An Economic Anchor in a Shifting World

Chinese Premier Li Qiang attended the summit as a key leading figure. He reiterated China’s commitment to multilateralism and regional cooperation. “At a time when unilateralism and protectionism are on the rise and world economic growth is sluggish,” Li said, “China, ASEAN, and GCC countries should strengthen coordination and cooperation and jointly uphold open regionalism and true multilateralism.”

China’s economic ties with ASEAN and GCC are already substantial. By 2024, China and ASEAN had become each other’s largest trading partners for five consecutive years, with trade surging from under $8 billion in 1991 to nearly $1 trillion. The recently concluded Version 3.0 China-ASEAN Free Trade Area agreement is expected to inject even greater momentum into this partnership.

At the same time, China’s trade with the GCC reached over $288 billion in 2024, driven by energy cooperation, investment in green transformation, and expanding infrastructure links through the Belt and Road Initiative.

Premier Li’s presence at the summit underscored China’s interest in deepening this cooperation. “China is willing to work with Malaysia to promote closer economic cooperation among the three parties,” Li told Prime Minister Anwar.

GCC’s Strategic Recalibration

The GCC’s strong presence at the summit signaled the Gulf states’ growing interest in diversifying their economic partners and expanding their influence beyond traditional Western spheres. The high-level attendance, including the Emir of Qatar and Crown Princes from Kuwait and Bahrain, reflects the bloc’s strategic calculation in building new investment pipelines with Asia’s emerging economies.

With Gulf states pushing for economic diversification under long-term visions like Saudi Arabia’s Vision 2030 and the UAE’s strategy to become a global tech and finance hub, China and ASEAN offer natural partners. Their combined market size, consumption power, and industrial capacity align well with the GCC’s capital surplus and energy resources.

‘Golden Triangle’

Experts have lauded the trilateral platform as a “Golden Triangle” of global economic resilience. Through infrastructure, trade, and development initiatives, most notably the Belt and Road Initiative, China has significantly influenced both ASEAN and the Middle East. These efforts have strengthened economic ties, increased regional connectivity, and promoted shared growth across the involved regions.

The partnership draws on each party’s unique strengths. ASEAN serves as a major production hub, the GCC contributes energy and financial resources, and China provides vast consumer demand along with a robust industrial network.

This trilateral partnership can help shield these economies from external shocks like U.S. tariffs and enable them to play a more influential role in shaping global trade rules and representing the interests of the Global South.

Technology, Investment, and Shared Prosperity

Beyond trade, the summit outlined plans for increased cooperation in areas such as the digital economy, artificial intelligence, green technology, and infrastructure development. The goal is to transform the trilateral engagement into a long-term investment and development partnership.

Indonesian President Prabowo Subianto echoed this sentiment during Premier Li’s earlier visit to Jakarta ahead of the summit. “I would like to express my respect to the people of China who have consistently supported the interests of developing countries,” he said. He also urged Chinese entrepreneurs to invest not only in Indonesia’s natural resource sector but also in science and technology.

Indonesian Ambassador to China Djauhari Oratmangun emphasized the importance of investment-driven development: “We invite more investment not only in downstream natural resources, but also in the fields of education, health, tourism, science, and technology.”

Global South Cooperation

ASEAN leaders expressed their hope that this trilateral engagement can mark a new chapter in outward-looking regional diplomacy. “Despite these challenges, I am confident ASEAN, the GCC, and China can draw upon our unique attributes and shape a future that is more connected, more resilient, and more prosperous for generations to come,” said Anwar.

Experts believe that this new configuration could eventually evolve into a standing platform for developing economies, similar in influence to BRICS or the Shanghai Cooperation Organization. As several ASEAN and GCC members are also affiliated with these groups, the Kuala Lumpur summit may serve as a bridge between regional and global multilateral frameworks.