# Reduction of US-China Rivalry Essential for South-east Asia, Says ASEAN Leader

- Link: https://www.thailand-business-news.com/asean/311157-reduction-of-us-china-rivalry-essential-for-south-east-asia-says-asean-leader
- Published: 2026-08-30T20:25:29+07:00
- Author: Jessica Lee

ASEAN Secretary-General Kao Kim Hourn stressed at the Shangri-La Dialogue that US-
China tension-easing efforts are vital for South-east Asia. He urged the “constructive
strategic stability” framework to translate into regional peace, while emphasizing
ASEAN’s commitment to avoiding coercion and choosing sides.

## Key Points

• ASEAN Secretary-General Kao Kim Hourn emphasized at the Shangri-La Dialogue that
US-China efforts toward “constructive strategic stability” are vital for South-east
Asia, as both superpowers are the region’s most consequential security and economic
partners, following tensions sparked by sweeping tariffs and trade disputes since
early 2025.

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• Panellists highlighted pressure on smaller nations, with Lithuania and New Zealand
drawing parallels between geopolitical coercion in Europe and Asia, stressing the
importance of upholding international rules and collective regional cooperation.

• Dr Kao addressed rising defence spending concerns and Myanmar’s crisis, supporting
recalibrated ASEAN engagement including virtual talks with Myanmar’s foreign minister,
while maintaining the Five-Point Consensus peace plan remains active.

### US-China Relations and ASEAN’s Strategic Priorities

**The easing of tensions between the United States and China** represents a critical
development for South-east Asia, according to ASEAN Secretary-General Kao Kim Hourn,
speaking at the Shangri-La Dialogue on May 30. Dr Kao emphasized that both superpowers
are ASEAN’s **most consequential security and economic partners**, making their 
relationship of direct regional importance. The newly introduced framework of **“
constructive strategic stability”** — built on the idea that competition and cooperation
can coexist — emerged following meetings between President Trump and President Xi
in May, offering cautious optimism for regional peace and development.

---

### Trade War Tensions and the Path Toward Normalization

**Sino-American relations deteriorated sharply** after Trump’s return to office,
with sweeping tariffs reaching **145 per cent**, triggering Chinese retaliatory 
measures including export controls and restrictions on **rare earths and critical
minerals**. A partial breakthrough in October 2025 saw tariff reductions and resumed
trade flows, though full normalization only followed the May Trump-Xi summit. Dr
Kao stressed that ASEAN nations must be able to pursue **security and prosperity
without coercion or being forced to choose sides**, underscoring the bloc’s firm
commitment to strategic independence amid intensifying great-power rivalry.

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---

### Geopolitical Pressure, Defense Spending, and the Myanmar Crisis

**Smaller nations facing geopolitical pressure** was a recurring theme at the plenary
session, with Lithuania’s Defense Minister drawing parallels between European and
Asian coercion tactics, and New Zealand’s Defense Minister advocating collective
regional strength. On **rising defense expenditure**, Dr Kao cautioned that diverting
resources toward military spending is “not very healthy,” reaffirming ASEAN’s preference
for **preventive diplomacy**. Regarding Myanmar, Dr Kao signaled a recalibration
of engagement, with ASEAN foreign ministers agreeing to a virtual meeting with Myanmar’s
counterpart — a notable shift — while reaffirming the **Five-Point Consensus** peace
plan remains the guiding framework.

**Source** : [Easing of US-China tensions crucial for South-east Asia: ASEAN chief](https://www.straitstimes.com/singapore/politics/moves-by-us-and-china-to-ease-tensions-crucial-for-s-e-asia-says-asean-chief)