‘US-China rivalry creates opportunities for ASEAN’

MANILA, Philippines — Tensions between two of the world’s largest economies are seen to open opportunities for the Association of Southeast Asian Nations (ASEAN), according to tycoon Jaime Augusto Zobel de Ayala.

During the ASEAN Business and Investment Summit yesterday, Zobel, also known as JAZA, said the rivalry between the US and China “could potentially be a swing factor” for the region as it maintains ties and continues to work with both countries.

“As a group of nations, I think we’ve managed to continue doing business with both. And I consider that a win at a time when the world has become polarized,” he said.

The ongoing US-China rivalry is changing the global trade order and even relationships.

“The US has moved to a more tariffed environment. There’s been increasing tension between the US and China. And suddenly, the decks have been shuffled. The relationships are not what they used to be,” Zobel said.

For Zobel, this disruption in the global trade environment opens opportunities for ASEAN to develop new relationships.

He said many other countries are also looking at forging new partnerships as their conventional ties have changed.

“This is a tremendous opportunity for us to coordinate,” he said.

While countries aim to compete and grow their competitive advantage, he said that cooperation has become more important amid shifts in the global trade environment.

“I think more than ever before, we need to find tools to cooperate successfully,” he said.

He said issues faced by the region may be addressed through cooperation.

“I think to succeed in this new world with shifting alliances, ASEAN has to be strong. We have to bring up the standards of each of our countries to be at the same level,” he said, noting this would require unity and cooperation.

Apart from cooperation, he said ASEAN countries could also learn from each other as they navigate developments affecting the global economy such as artificial intelligence (AI).

He said ASEAN countries can learn from Malaysia, which is putting up all the elements needed for AI to flourish including building data centers, digital banks and software.

“So as we enter this AI world, I think there should be a conversation within ASEAN as well as what is the plumbing, what is the infrastructure we need to make AI succeed,” he said.

“I don’t think we are going to be leaders in the actual modeling itself, but they’re going to need our markets and they’re going to need engines that can survive in those markets,” he said.