Implications of China’s growing influence to ASEAN and US interests

Abstract

The Association of Southeast Asian Nations (ASEAN) derives its geopolitical importance principally from its strategic location at the crossroads between the concentration of economic, technological and military power in Northeast Asia to the north, Indian subcontinent and the oil resources of the Middle East to the east and Australia to the south. High proportions of trade of Japan, South Korea, Taiwan, China and Australia transits the straits and sea lines of communications (SLOCs) in South East Asia. Despite of Southeast Asian region strategic importance, ASEAN has traditionally received much less attention by Washington. After the withdrawal of the US from Vietnam in early 1970s, Southeast Asia was a relatively peripheral theatre and their importance continues to decline further after the end of the Cold War. However, changes in the global and Asian security landscape after the 9/11 has forced the US to pay more attention to the Southeast Asian region. The uncovering of the religious terrorist network in the region that was linked to Al-Qaeda has elevated the importance of ASEAN to the US... On the other hand, the rise of China as a major economic power embracing towards global economy is driving profound changes in the region and beyond. China has become the largest trading partner to many countries in Asia including Japan and South Korea. China is also known to have a large trade surplus with the US. The value of the US trade deficit with China was approximately 1.6 percent of the US Gross Domestic Product (GDP) in 2006. Traditionally, the Asian economies grew by selling to the west but today the growths of many Asian economies are driven by trade within the region particularly with China. These new economic realities are seen to have long term strategic and implications to many countries, particularly ASEAN and the US.