Southeast Asia’s economic future remains entwined with China despite the attention lavished on the region this week by United States President Donald Trump, experts say, as Asean upgraded trade ties with Asia’s superpower and its largest commercial partner.
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The Association of Southeast Asian Nations on Tuesday agreed to expand its existing trade deal with Beijing to include future industries such as the digital economy and green technology, as well as boost integration of supply chains.
The upgraded deal comes just days after Trump saw to the signing of trade deals with Cambodia, Malaysia and Vietnam – and agreements on critical mineral access with Malaysia and Thailand.
During his headline-grabbing one-day visit to Malaysia for the Asean summit over the weekend, Trump pledged to “forge richer partnerships” and create “incredible prosperity for the nations on both sides of the Pacific Ocean”.
The US is currently Asean’s largest export destination.
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But China has been the region’s largest trading partner for 16 years running – making the Asian giant indispensable to Asean’s economic health, experts say.