Regional trade alliances and economic integration — especially the one emerging between China, ASEAN and countries in the Persian Gulf — are offering stability for a global economy on the edge. The world’s poles are shifting to fill the gap left by an increasingly isolationist United States.

U.S. President Donald Trump’s tariffs – especially the ultra-high “reciprocal tariffs” that he says will be reintroduced on July 8 for any country that has not struck a trade deal with his administration – have sent countries around the world scrambling to respond, adapt, and limit the fallout. ASEAN’s ten members – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam – have been among the most proactive.

America’s tariff agenda has taken global trade hostage to begin this year. While the strongman tactics employed by Trump’s administration are netting favorable results in some ways, China has been able to hold out from the pressure, showing flaws in America’s plan.

There is an inherent flaw in US President Donald Trump’s trade policy. While it is all but impossible to know where Trump will settle on most issues – from taxes to immigration – two key objectives of his trade strategy are now coming into focus: setting a global minimum tariff, and imposing a special penalty on China. The flaw lies in the combination.

America’s reindustrialization process relies heavily on China’s industrial system support. In an increasingly competitive global market, China’s full-fledged industrial system emerges as the most cost-effective and competitive option.

The U.S. president is coercing its allies to coordinate the policies related to critical minerals to weaken China’s influence in the global market and create a more “safe and reliable” supply chain for the United States.

After reaching a consensus in their tariff negotiations in Geneva, China and the United States have significantly reduced their duties on each other. This has awakened countries around the world and inspired them to launch a new wave of regional integration.

Wall Street’s turmoil is both a crisis and an opportunity. Those who adapt by diversifying into non-dollar assets or betting on emerging markets as wealth and power are redefined could come out ahead.

In the week of 25th May 2025, Kuala Lumpur played host to a landmark event: the inaugural ASEAN-GCC-China Summit. It brought together Southeast Asian nations, the Gulf states, and China - three pillars of the emerging multipolar order - in a signal moment of strategic realignment. While headlines may focus on trade, energy, and infrastructure cooperation, the deeper story lies in a quiet revolution in how the world’s fastest-growing economies trade, settle, and invest - increasingly without the U.S. dollar.

Values laid out by China and the United States — equality, mutual respect and mutual benefit — will keep trade tensions under control through practical results and stabilize the important trade relationship.