financetom
Economy
financetom
/
Economy
/
Southeast Asia is increasingly turning to India instead of the US or China
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Southeast Asia is increasingly turning to India instead of the US or China
Mar 16, 2018 3:52 AM

Beijing and Washington have long been the dominant powers in Southeast Asia, home to some of the world's fastest-growing economies. But the region is increasingly seeking alternative alliances amid unease over China's rising influence and perceptions of an unpredictable White House.

Share Market Live

NSE

"Specific Southeast Asian states are now seeking to diversify their strategic partnerships, beyond a binary choice between Beijing and Washington," the Council on Foreign Relations, a U.S. think tank, said in a note this week.

A key element of those diversification efforts is working with India "as a more forceful counterweight to China and hedge against a declining United States," the note said.

Southeast Asian nations are also looking at Australia as another potential partner.

The Association of Southeast Asian Nations (ASEAN) and Canberra are holding a special summit between from March 16 to 18, a sign that the 10-nation bloc is exploring various hedging strategies against Beijing, said Geoff Raby, former Australian ambassador to China.

Trade deals such as the newly-inked Comprehensive and Progressive Agreement for Trans Pacific Partnership as well as intelligence sharing efforts on terrorism are also indicative of Southeast Asian leaders seeking greater regional cooperation.

US 'increasingly unreliable'

Certain countries, such as Cambodia and Thailand, haven't signaled opposition to Beijing's growing clout in the area, which is reflected by an influx of Chinese-funded infrastructure projects under the Belt and Road Initiative and man-made Chinese islands in the South China Sea.

But others, including Vietnam, have publicly come out against China's behavior in the region.

Previously, those nations could turn to Washington for leadership, but President Donald Trump's controversial measures — from tariffs on foreign aluminum and steel imports to firing Secretary of State Rex Tillerson — has unnerved America's Asian allies, according to strategists.

"The manner in which Donald Trump handled Tillerson's dismissal, combined with his snap decision to meet Kim Jong Un and other recent actions, reinforce the perception of the U.S. in Asia that the U.S. is increasingly unreliable," said Philip Yun, executive director of Ploughshares Fund, an anti-nuclear weapons group.

People in the region are paying attention to the fact that Japanese Prime Minister Shinzo Abe, "who had touted his close relationship with Trump, was blinded-side by Trump's agreement to a U.S.-North Korea summit," Yun said.

Also telling are recent comments from Singaporean Prime Minister Lee Hsien Loong, Yun said. This week, Lee said ASEAN must adjust to a new power balance in Asia, suggesting the bloc look more to China and India.

The U.S. is still widely expected to continue strong defense ties with Southeast Asian countries on matters such as freedom of navigation in the South China Sea.

India's rise in Southeast Asia

Widespread apprehension over China's ambitions has helped Prime Minister Narendra Modi enhance political and economic ties with Southeast Asian economies under a policy known as "Act East."

Hanoi, for example, is partnering with New Delhi on South China Sea issues. In a meeting earlier this month, Modi and Vietnamese President Tran Dai Quang committed to more defense equipment deals and joint exploration in the international waterway, prompting criticism from Beijing.

"The two sides may, in the future, want to be close partners to some other future regional alternative, or at least, partial alternative, to Belt and Road," according to the Council on Foreign Relations.

Vietnam is also strengthening relations with other regional powers that are skeptical of or outright hostile to China, the organization said.

And in January, India invited all 10 ASEAN leaders as chief guests to its annual Republic Day celebrations — a historic first. The same month, New Delhi also invited those politicians to a summit aimed at promoting maritime security.

Every ASEAN leader wants New Delhi to play a more assertive role in the Indo-Pacific region, Preeti Saran, secretary at India's Ministry of External Affairs, was quoted as claiming at the time.

India is also a major player in a newly resurrected informal defense alliance known as "the Quad," which is aimed at offsetting Chinese maritime expansion.

While Vietnam, Singapore and Indonesia are gradually embracing the concept of a more assertive Indian role in Southeast Asia, others like the Philippines and Malaysia remain silent on the matter, Manoj Joshi, distinguished fellow at Indian think tank Observer Research Foundation, said in a February report.

Australia too

Like India, Australia isn't a member of ASEAN, but Canberra has long been a major player in Asia-Pacific affairs due in part to proximity.

This weekend's summit between ASEAN leaders and Australian Prime Minister Malcolm Turnbull is "unprecedented," according to Raby: "Five, certainly 10 years ago, this would have never happened, ASEAN leaders would not have come to Australia, they would not have embraced Australia in this way."

Uncertainty over China and the U.S. is pushing Southeast Asia to Down Under, Raby said.

China's "aggressive and assertive foreign policy in Southeast Asia" is motivating regional governments to seek "a balance on Beijing's behavior," he said.

Moreover, ASEAN is worried about "how engaged the U.S. will be in East Asia" amid uncertainty over Trump's policies, Raby continued.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US consumer prices likely increased in February ahead of Iran conflict
US consumer prices likely increased in February ahead of Iran conflict
Mar 10, 2026
WASHINGTON, March 11 (Reuters) - U.S. consumer prices likely picked up in February as the cost of gasoline increased in anticipation of an escalating war in the Middle East, and with the conflict driving up oil prices, a further rise in inflation is expected in March. The anticipated increase in the Consumer Price Index last month would also reflect the...
US private payrolls post largest drop in more than 2-1/2 years in November
US private payrolls post largest drop in more than 2-1/2 years in November
Mar 10, 2026
WASHINGTON, Dec 3 (Reuters) - U.S. private payrolls posted their biggest drop in more than two and a half years in November as small businesses shed jobs, but the weakness is probably not a true reflection of the labor market's health, with recent government data showing still-low layoffs. Economists also cautioned against reading too much into the unexpected decline shown...
Crypto Markets Today: Bitcoin Reclaims $92K as Fed Rate-Cut Expectations Lift Sentiment
Crypto Markets Today: Bitcoin Reclaims $92K as Fed Rate-Cut Expectations Lift Sentiment
Mar 10, 2026
The crypto market exhibited signs of optimism during the Asia session on Monday, with bitcoin (BTC) rising above $92,000 having spent the weekend trapped in a tight range below $90,000. The largest cryptocurrency has now reversed Friday's sell-off and is within striking distance of last week's high of $94,200. U.S. equity index futures also posted a gain from Sunday evening's...
Analysis-Trump fuel economy rollback may make cars cheaper, but higher gas bills will absorb savings
Analysis-Trump fuel economy rollback may make cars cheaper, but higher gas bills will absorb savings
Mar 10, 2026
WASHINGTON, Dec 8 (Reuters) - The Trump administration's proposal to roll back Biden-era vehicle fuel-efficiency standards may save automakers in the U.S. tens of billions of dollars and potentially lower upfront purchase costs for American car buyers. But any savings for car buyers will vanish quickly as drivers are forced to shell out more cash at the fuel pump, according...
Copyright 2023-2026 - www.financetom.com All Rights Reserved