ASEAN Increasingly Looks to EU as Counterbalance to US-China Competition

Southeast Asian nations are increasingly viewing the European Union as a key partner to navigate the growing strategic rivalry between the United States and China, according to recent findings.

The EU has consistently been the preferred external partner for hedging against uncertainties stemming from the US-China dynamic, as revealed in surveys conducted by the ISEAS-Yusof Ishak Institute. Its appeal is rooted in its commitment to a multilateral trading system, support for ASEAN regional integration, and leadership in sustainable economic development. This growing preference comes as ASEAN seeks to avoid being forced into choosing sides between the two global powers.

However, businesses operating within the Association of Southeast Asian Nations (ASEAN) report feeling disadvantaged compared to competitors from Japan, Korea, China, and Australia, who benefit from existing ASEAN-wide Free Trade Agreements (FTAs). Almost 80% of respondents in a recent business sentiment survey expressed this concern. Greater EU engagement, with increased capital and expertise, could significantly bolster ASEAN’s economic goals, including strengthening regional supply chains and fostering a thriving digital economy – areas crucial for long-term stability in the region. You can learn more about ASEAN’s economic priorities on their official website.

This shift in preference highlights the importance of diversified partnerships for Southeast Asia, as geopolitical tensions continue to rise. The EU’s approach, focused on empowerment rather than extraction, resonates with ASEAN’s ambitions for sustainable and independent growth. Officials stated today that further discussions regarding potential trade agreements are planned for early 2026.