China, together with the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC), announced new plans for economic cooperation during a trilateral summit held in Kuala Lumpur. This initiative comes in response to the high tariffs imposed by U.S. President Donald Trump, which have heightened tensions in global trade.
Chinese Premier Li Qiang stated at the summit that ASEAN and the GCC will jointly establish a “vibrant economic circle.” This cooperation aims to strengthen free trade and promote the free flow of resources, technologies, and investments.
The trilateral summit, held in Malaysia’s capital, highlights the unity among countries of the Global South. The combined GDP of ASEAN, the GCC, and China stands at $24.87 trillion, with a total population of 2.15 billion, accounting for a quarter of the global economy. Malaysian Prime Minister Anwar Ibrahim emphasized that this collaboration creates “tremendous opportunities” for innovation and investment.
China underlined the importance of free trade agreements. It was announced at the summit that the upgrade of the China-ASEAN Free Trade Agreement has been completed, while negotiations for a GCC-China agreement are nearing conclusion. These developments aim to reduce dependence on the U.S. market and enhance the economic resilience of the Global South. China also seeks to deepen cooperation in areas such as the digital economy, green energy, and finance. Premier Li Qiang proposed a “deep strategic development” framework with ASEAN and GCC countries and encouraged the use of local currencies to reduce reliance on the U.S. dollar.
Under Malaysia’s chairmanship of ASEAN for 2025, the summit also addressed global challenges, including the 32–49% tariffs imposed by the U.S., which have significantly affected six ASEAN member states. Prime Minister Anwar Ibrahim stated that ASEAN remains neutral but views cooperation with China as a “stable partnership”.
Other issues discussed at the summit included the civil war in Myanmar, where participants expressed support for bilateral solutions and ceasefire initiatives. China also backed Malaysia’s proposed Confucian-Islamic civilizations dialogue, aimed at fostering people-to-people exchanges and deeper civilizational integration.
