Ex-Malaysia PM urges stronger Asean ties with China, India to replace US

Malaysia's Foreign Minister Mohamad Hassan also urged quicker regional integration, saying the Asean bloc must act now to reduce the impact of global trade shocks, especially from US tariffs

   

Former Malaysian Prime Minister Mahathir Mohamad has urged Southeast Asian countries to strengthen trade relations with China and India to bypass steep US tariffs. In an interview with Nikkei Asia, Mahathir said, “Malaysia should have a bigger trade with China and India to replace the loss of trade against America.”

 

Mahathir was speaking on the sidelines of the Future of Asia forum in Tokyo last week. Mahathir emphasised that trade with China significantly surpasses that with the United States, and noted that there is still potential to further expand trade with India.

  Asean reels from US tariffs

 

The US, under President Donald Trump, imposed tariffs ranging from 10 per cent to 49 per cent, heavily impacting Asean (Association of Southeast Asian Nations) economies that rely on US exports. Six of the Asean bloc’s 10 member states are among the worst affected, likely impacting the Asean’s 4.7 per cent growth target for the year.

 

Following Trump’s announcement of a 90-day tariff pause last month, several Asean countries - including Malaysia, Indonesia, Thailand, and Vietnam - initiated trade talks with Washington to mitigate the economic fallout. 

  Malaysia calls for regional integration

 

Malaysia’s Foreign Minister Mohamad Hassan also called for faster regional economic integration to buffer the effects of global trade disruptions. “Asean nations are among those most heavily affected by the US-imposed tariffs,” Mohamad said. “We must seize this moment to deepen regional economic integration; so that we can better shield our region from external shocks.”

 

Asean has responded by intensifying ties with China and the Persian Gulf, including a landmark trilateral summit held in Kuala Lumpur last month. Trade between Asean, China, and the Gulf Cooperation Council (GCC) reached over $900 billion last year — nearly double its $453 billion trade volume with the US, according to Aseanstats.

  Push for Asean-US dialogue

 

As the current Asean chair, Malaysia has formally requested a special summit with the US to discuss trade issues. Mohamad expressed hope that the meeting would take place later this year.

  China will be ‘No 1 country in the world’: Mahathir

 

Mahathir stated that China is on track to become the world’s leading power, asserting that the United States lacks the capacity to halt its rise due to growing domestic preoccupations. “China has been there much longer than the US. I don’t think China is going to be easily defeated by the US,” he said. “I don’t think the US will recover and become No 1 again. China looks like it is going to be the No 1 country in the world.”