Asean’s challenge is to become resilient against global geopolitics: former Indonesia trade minister
Ongoing US-China tensions, Strait of Hormuz crisis and AI developments change the game, she says at AmChamSG event
Former Indonesian Trade Minister Dr Mari Elka Pangestu addressed the challenges Asean faces in building resilience against global geopolitics at the American Chamber of Commerce in Singapore's Regional Economic Conference. The speaker highlighted how ongoing US-China tensions, the Strait of Hormuz crisis, and AI developments have altered the region's dynamics.
Pangestu suggested that Asean should move beyond merely absorbing global shocks and strive for self-reliance, emphasizing the need for a rules-based global order. She pointed out that unilateralism, or states acting independently without consulting others, is a growing concern, as it undermines the region's growth model which relies on openness and a rules-based system.
The minister outlined a six-layer strategy to evaluate trade flows, with the final layer focusing on economic security risk. She emphasized the importance of addressing China's import risks, particularly in electronics manufacturing and electric vehicles, to prevent Asean countries from becoming overly dependent on Chinese goods.
Additionally, Pangestu highlighted the need for Asean to diversify supply chains to benefit from both US-led and China-led initiatives, such as the Pax Silica initiative and China's World Artificial Intelligence Cooperation Organization, without being forced to choose sides in the AI governance debate.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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