Asean states must secure their economic interests against foreign pressure

SINGAPORE/KUALA LUMPUR, Feb 18: As one of the most economically dynamic regions in the world, South-East Asia has been a key focus for China's ambitious Belt and Road Initiative (BRI), which seeks to enhance China's economic influence by investing in infrastructure projects across Asia and beyond.

While some Asean countries have welcomed Chinese investment, others have become increasingly wary of China's practices, particularly in relation to its foreign policy and security ambitions.

As Asean countries increasingly find themselves at odds with the regional power there is an increasing momentum to reevaluate their relationship with China in an effort to balance their national interests and trade relationships.

Frequent claims have been made over China using its economic clout to extract political concessions and influence other countries' policies, particularly in developing nations including in Asean.

China’s companies, many with strong links to the state, have been known to engage in controversial practices, often at the expense of local companies and workers, including importing their own materials and monpower leading to little benefits for countries hosting BRI-linked projects.

In some cases, China has also been accused of engaging in economic coercion to punish countries that do not align with its interests. This has been seen in the form of trade bans, restrictions on tourism and other measures aimed at causing economic pressure.

However it is the ongoing dispute over the South China Sea that has proven to be the most harmful for Asean-China ties.

China's claims are based on a controversial "nine-dash line" that encompasses most of the area. It has also constructed militarised artificial islands in the disputed waters.

This has raised concerns among Asean countries, which fear that China's actions could destabilise the region and threaten their own sovereignty.

Debt trap diplomacy is another concern for Asean countries.

Under the BRI, China has invested heavily in infrastructure projects in developing countries.

However, these loans frequently include unfavourable terms, such as the requirement to use Chinese firms for construction or the provision of goods and services.

In some cases, countries have found themselves unable to repay these loans, allowing China to gain significant leverage over their economies, a practice that critics say is aimed at extending its influence over these countries.

The security implications of China's 5G technology, particularly the involvement of Chinese tech giant Huawei, have also raised concerns among Asean countries.

The United States and other Western countries have accused Huawei of being a national security threat, arguing that the company's close ties to the Chinese government make it susceptible to state-sponsored interference leading to some countries to ban Huawei from their 5G networks, while others have sought to impose strict regulations and oversight to mitigate security risks.

For these reasons Asean countries are beginning to pivot away from China. While some Asean countries may continue to seek economic opportunities through engagement with China, they must also balance their own national interests and security concerns.

As China's influence continues to grow in the region, it is important for Asean countries to maintain a degree of strategic autonomy and diversify their economic and diplomatic relationships with other partners.

This naturally creates an opening for China’s geopolitical rivals to exploit, bringing in their own technology, investments and development plans which will see Asean, including Malaysia become the recipient of these benefits.

The West is home to some of the most advanced and innovative companies in the world, particularly in technology and biotechnology.

By working with these companies, Asean countries can gain access to cutting-edge technology and expertise, which can help to drive innovation and economic growth and collaborations with Western firms can help Asean countries to develop new products, improve manufacturing processes, and enhance their capabilities in areas like artificial intelligence, robotics, and renewable energy.

Additionally many Western countries are major importers of rare earth minerals, which are essential for a wide range of high-tech applications, including electronics, renewable energy, and defense technologies.

By working with Western countries to secure a reliable supply of these minerals, Asean countries can help to support their own high-tech industries and reduce their dependence on China, which currently dominates the global rare earths market.

In addition to rare earths, Asean countries can gain access to a reliable and diverse range of commodities, which can help to support their own manufacturing, energy, and agricultural industries.

This can also help to reduce their dependence on specific countries or regions, and increase their resilience in the face of global economic volatility.

The writer Samirul Ariff Othman is a widely quoted Political Economic & International Relations analyst. He was previously attached to a leading local think tank.