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LEADERS of the Association of Southeast Asian Nations (ASEAN) have voiced concern over recent tariff actions by the United States, warning of potential instability in capital flows and currency markets.
The matter was addressed in the Chairman’s Statement issued at the conclusion of the 46th ASEAN Summit held under Malaysia’s 2025 Chairmanship.
“We noted with concern the recent announcement by the United States to impose unilateral tariffs and the potential impact on our economies,” the statement read.
While expressing unease over the move, ASEAN leaders emphasised their commitment to constructive engagement with the US and ruled out retaliatory measures.
“The uncertainty arising from these tariffs and potential retaliatory actions could increase volatility in capital flows and exchange rates,” the statement continued.
Despite external challenges, ASEAN leaders reaffirmed their dedication to regional unity, economic stability, and practical cooperation. They pledged to reinforce financial resilience and drive greater intra-ASEAN trade and investment, particularly in response to intensifying global trade tensions.
“We remain committed to ASEAN as a trusted economic partner and will strive to enhance an upgraded framework of economic cooperation with the United States, particularly in high-value and future-oriented sectors,” the statement said.
The bloc also vowed to strengthen ties with external partners, including Dialogue Partners, and to explore new economic opportunities through diversified cooperation.
Held under the theme *‘Inclusion and Sustainability’*, the summit marked Malaysia’s fifth turn as ASEAN Chair following previous chairmanships in 1977, 1997, 2005, and 2015.
China’s Li Qiang Urges Stronger ASEAN-GCC-China Cooperation
At the ASEAN-GCC-China Economic Forum, held in conjunction with the summit, Chinese Premier Li Qiang highlighted the vast untapped potential for trilateral cooperation among ASEAN, the Gulf Cooperation Council (GCC), and China.
In light of the latest wave of technological revolution and industrial transformation, Li called for joint efforts to foster high-tech industries, safeguard industrial and supply chains, and resist rising protectionism and unilateralism.
“Despite the combined economic scale of our three regions accounting for about one-quarter of global output, our total trade represents only around 5.4 percent of world trade. This signals immense opportunity for deeper collaboration,” Li said.
Citing his recent visits to Malaysia, the Middle East, and Gulf countries, Li expressed optimism over public sector partnerships and regional synergies. He urged ASEAN and GCC nations to capitalise on their unique advantages for mutual benefit.
“This cooperation will support high-quality R\&D platforms, wide-ranging applied product networks, and the growth of emerging industries and new business models, boosting the global innovation standing of our three regions,” he said.
Li pointed to China's thriving new energy vehicle (NEV) sector as a case in point, noting that production and sales exceeded four million units between January and April this year. He added that over 80 percent of Chinese manufacturing now operates under 'Smart Factory' frameworks.
“NEVs are not merely a symbol of the energy transition, but a smart hub driving multi-technology development,” he said.
Reaffirming China’s pro-growth fiscal and monetary stance, Li pledged support for industrial modernisation geared toward high-quality, intelligent, and green development.
“No matter the challenges ahead, the Chinese government and people are confident and capable of keeping the economy stable and on the right track.
“We are committed to high-level opening-up and will introduce more autonomous and stable liberalisation measures,” he said.
Li concluded by underlining that Asia’s rapid development over past decades is proof that unity, peace, and stability are the foundation of lasting prosperity.
“Without mutual trust, conflict arises, and cooperation becomes difficult. Conversely, unity enables strategic support, more expansive and sustainable economic collaboration, and ensures long-term stable development,” he said. - May 28, 2025
