China and US push Southeast Asia over their AI blocs. Will it test region’s non-alignment?

Southeast Asian leaders have consistently maintained their policy of non-alignment amidst the great-power rivalry between the United States and China. However, this stance is now facing pressure as the battleground shifts to artificial intelligence (AI).

The United States is promoting "Pax Silica," an initiative aimed at constructing a China-free AI supply chain. In contrast, China is pushing for its neighboring countries to join the World Artificial Intelligence Cooperation Organisation (Waico). Both countries have been exerting pressure on Southeast Asian economies to align with their respective AI frameworks.

Chinese officials have reportedly lobbied Association of Southeast Asian Nations (Asean) countries, promising "exclusive privileges" to entice them to join Waico, which was established in Shanghai in July with an initial 29 members, mainly from the Global South. Five Southeast Asian countries, including Cambodia, Indonesia, Laos, Malaysia, and Myanmar, have already signed on.

Pax Silica, on the other hand, has 24 members and focuses on enhancing supply chain security, seen as an attempt to isolate China from key technology networks. Singapore and the Philippines are the only Southeast Asian countries currently part of Pax Silica.

US officials are also attempting to attract Southeast Asian countries to join Pax Silica, reportedly pressuring them about their membership in Waico while expressing disapproval of both the Chinese-led organization and the countries' participation in the Shanghai conference last month. Washington is reportedly preparing to inform a dozen countries that they must choose sides, warning that they will be excluded from Pax Silica if they join Waico.

Analysts predict that Southeast Asia will be a primary battleground for US-China competition over AI, with many countries seeking to keep their options open and hedge between Chinese and US AI systems. The AI race between the US and China has intensified, with open-source Chinese AI models challenging closed systems developed by US firms like OpenAI and Anthropic.