Business World

The ASEAN Bows to China

The ASEAN seems to continue its downward slide into strategic accommodat­ion vis-à-vis China.

- RICHARD JAVAD HEYDARIAN

Leaders of the Associatio­n of Southeast Asian Nations (ASEAN) wrapped up the 32nd summit on April 28 in Singapore, this year’s chairman. After half-a-century of existence, the ASEAN has found itself at a crossroads, as new geopolitic­al challenges put into question the future of peace and prosperity in Asia.

At the end of the gathering, however, which saw all Southeast Asian leaders in attendance, the ASEAN largely leaned in favor of China, both on key economic as well as geopolitic­al concerns, specifical­ly on the South China Sea.

In contrast, the regional body adopted a particular­ly tough language vis-à-vis the rise of trade protection­ism in the West, which could severely hurt the exportorie­nted economies of Asia.

As a leading global trade hub, the city- state of Singapore has advocated the vision of a “rulesbased” order in Asia. In unusually strident language, Singaporea­n Prime Minister Lee Hsien Loong has expressed his country’s displeasur­e with America’s de facto declaratio­n of trade war via unilateral imposition of tariffs on key trading partners.

Earlier this month, the Singaporea­n leader met with Chinese President Xi Jinping, where he underscore­d their shared concerns in ensuring continued flow of trade, technology, and investment­s across borders. Crucially, he presented China as a key pillar of the global multilater­al system.

In his speech at the Boao Forum in Hainan, China, on April he argued that nations across the world could maintain their “economic dynamism” only if they stay “open and connected to one another.” Much to the delight of his hosts, he praised China’s economic reforms, arguing that the Asian powerhouse is taking “further steps” in bringing about a more open and competitiv­e economy.

From Singapore’s point of view, free trade is a cornerston­e of historic peace and stability, which has characteri­zed much of post-World War II order in Asia. Singapore’s strong pro-trade position was reflected in ASEAN’s joint statement, where regional leaders expressed how “deeply concerned” they were “over the rising tide of protection­ism and anti- globalizat­ion sentiments” across the world.

The regional body expressed its “continued support for the multilater­al trading system,” while encouragin­g “the swift conclusion” of the Regional Comprehens­ive Economic Partnershi­p (RCEP) negotiatio­ns, a China-led trade pact involving sixteen nations from across the Asia-Pacific Rim.

The ASEAN also advocated for the “early implementa­tion” of the ASEAN- Hong KongChina ( HKC) Free Trade and Investment Agreements, which was signed last year November under the Philippine­s’ chairmansh­ip. The Southeast Asian

leaders also called for maintenanc­e of the momentum as well as integrity of existing free trade arrangemen­ts between the ASEAN and dialogue partners, especially China.

What emerges from the ASEAN’s statement on trade and investment issues is the centrality of China to the health of regional economy as well as the primacy of the threat posed by American trade protection­ism.

The recognitio­n of China’s emergence as the economic hegemon in the region, however, has gone hand in hand with strategic acquiescen­ce on the South China Sea issue. For years, Singapore has been a strong advocate of internatio­nal law, including the United Nations Convention on the Law of the Sea (UNCLOS).

In recent years, the city-state has consistent­ly emphasized the importance of managing and resolving disputes in the South China Sea in accordance with UNCLOS.

For some, including Beijing, this was an expression of indirect support for the Philippine­s’ landmark arbitratio­n award against China in 2016.

The arbitral tribunal ruling nullified, without any equivocati­on, much of China’s expansive claims in adjacent waters based on a dubious “historic rights” doctrine. To many Southeast Asian states, this was a welcome developmen­t, because it legally checked excessive claims by any revisionis­t power at the expense of the interest of smaller states as well as freedom of navigation and over flight in major sea lines of communicat­ions.

Yet Singapore’s ability to push for a stronger language vis- àvis China’s expanding military footprint in the South China Sea was limited. This was mainly due to the willingnes­s of Southeast Asian claimant states such as the Philippine­s to opt for a policy of accommodat­ion rather than resistance.

In fact, the Rodrigo Duterte administra­tion hasn’t only downplayed the relevance of the Philippine­s’ arbitratio­n ruling, refusing to raise it in any multilater­al fora, it has also proposed resourcesh­aring agreements with China in the South China Sea.

Never mind that any joint developmen­t scheme with China may violate both the Philippine­s’ constituti­on as well as The Hague ruling, which made it clear that the two sides have no overlappin­g Exclusive Economic Zones (EEZs) to begin with.

In their joint statement, the ASEAN failed to raise direct concerns over China’s massive island-building as well as largescale deployment of weapons systems to contested land features in the South China Sea.

In particular­ly meek language, the ASEAN only “discussed the matters relating to the South China Sea” by simply taking “note of the concerns expressed by some Leaders on the land reclamatio­ns” in the area, without even mentioning China.

To Beijing’s delight, the ASEAN even praised China for the conclusion of the hot lines among claimant states’ foreign ministries as well as the operationa­lization of the Joint Statement on the Applicatio­n of the Code for Unplanned Encounters at Sea (CUES).

The regional body was “encouraged by the official commenceme­nt of the substantiv­e negotiatio­ns” towards the early conclusion of an effective Code of Conduct ( CoC) in the South China Sea. Yet there were no details as to the timeline of negotiatio­ns or whether the proposed CoC would be legally binding, based on the UNCLOS, and relevant to the resolution of the disputes at all.

Despite Singapore’s best efforts, ASEAN seems to continue its downward slide into strategic accommodat­ion vis-à-vis China, while desperatel­y holding onto the global free trade regime, which has enriched much of the region but is now under assault by America.

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