China’s next move is the subject of much speculation and worry for observers and enemies. The current conditions of today’s geopolitical stage should lead China towards its Southeast Asian neighbors in what may be its next international outreach campaign.

Positive trade mechanisms have emerged. China remains committed to developing its relationship with the U.S. The recent tension over Taiwan was controlled. Such things and others are a basis for optimism, not despair.

Three primary U.S. goals have their limitations. While it currently enjoys an internal bipartisan consensus on China, diplomatic and security problems, loopholes and contradictions exist for many countries in the region. The U.S. seeks to adjust the system to its advantage.

Can a region as complex and fast-changing as Asia devise and implement a comprehensive development plan? The Jakarta-based Economic Research Institute for ASEAN and East Asia, which just released its third “Comprehensive Asia Development Plan” (CADP), thinks so.

IPEF negotiations are underway and four joining statements were recently released at the first in-person IPEF ministerial meeting. But Washington’s motives and the direction they lead negotiations remains to be seen, as they seek to build allyship in the Pacific and increase competition with China.

Their positions vary in some details, but the overall thrust is consistent: ASEAN wants peace and prosperity and supports the “one-China” principle. Members have been cautious not to choose sides in a major power rivalry because they see value in both.

Last October’s G20 Leaders’ Summit – held in Rome, and hosted by then-Italian Prime Minister Mario Draghi – produced a declaration brimming with promises to “address today’s most pressing global challenges” and “converge upon common efforts to recover better from the COVID-19 crisis and enable sustainable and inclusive growth” across the world. What a difference a year makes.

The systemic challenge for the U.S. is not China but the worst inflation in 40 years. In fact, fragmentation does not seem to be happening in the real world. Even an Asia-Pacific version of NATO will not likely divide the region, as China will continue to be a major trade partner.

Lacking concrete detail, the framework is burdened by great uncertainty. Moreover, the United States seems to be sending a decoupling signal to China — a questionable strategy. If the U.S. continues along this line, it will be hard to win confidence and cooperation from countries in the Indo-Pacific region.

America finally issued a broad statement on its Indo-Pacific strategy, predictably addressing concerns about China’s influence and spelling out its intention to play into its allies' favor. Meanwhile, ASEAN must respond to the latest development to retain their own autonomy and stability in what many are sure to see as rising tensions.