China’s premier tells ASEAN, Gulf nations to remove trade barriers

China’s Premier Calls on ASEAN, Gulf Nations to Remove Trade Barriers

*June 2024* — Chinese Premier Li Qiang has called on countries in Southeast Asia and the Gulf region to remove trade barriers, as leaders from the Association of Southeast Asian Nations (ASEAN), the Gulf Cooperation Council (GCC), and China met this week to strengthen economic ties and navigate global trade challenges.

Speaking at a high-level regional forum, Premier Li urged ASEAN and Gulf nations to work closely with China in dismantling obstacles to trade and investment, according to Reuters. Li emphasized the need for companies from the region to “fully share” in China’s economic development, inviting greater investment and collaboration with the world’s second-largest economy, as reported by Fortune.

The appeal comes at a time when global trade faces headwinds due to rising protectionism and recent tariff escalations among major economies. The United States’ decision to increase tariffs has prompted regional powers to seek alternative partnerships and cushion the impact on their economies. According to Tribune India, ASEAN, Gulf nations, and China convened in part to address these concerns and explore collective strategies to mitigate the effects of U.S. trade policies.

Calls for Enhanced Regional Cooperation

Premier Li’s statement aligns with China’s broader strategy to solidify its economic partnerships with both ASEAN and GCC countries. China remains a top trading partner for ASEAN, and trade between China and the Gulf nations continues to expand, notably in sectors like energy, infrastructure, and manufacturing.

At the forum, Li highlighted China’s commitment to open markets and fair trade, reiterating Beijing’s willingness to engage in dialogue on mutually beneficial tariff reductions and streamlined trade procedures. He encouraged member nations to collaborate on initiatives that will foster business growth, economic stability, and sustainable development across the region.

China’s message was echoed by several ASEAN and GCC representatives, who underscored the importance of free and open trade for regional prosperity. The discussions reflected a growing sense of urgency among attendees to diversify their economic partnerships and reduce dependence on single markets.

ASEAN Navigates Tariff Negotiations with US

In parallel with efforts to bolster ties with China and Gulf countries, ASEAN leaders have reached an agreement to ensure that any future tariff deals with the United States will not harm the group’s member states, according to Reuters and VOI.ID. The agreement aims to maintain unity within ASEAN, even as individual countries explore bilateral tariff arrangements with Washington.

This approach signals ASEAN’s intent to strengthen internal cohesion while remaining flexible in its external trade negotiations. The bloc, which comprises ten Southeast Asian nations, is seeking a balance between safeguarding collective interests and pursuing opportunities in the global market.

Looking Ahead

The call by China’s premier for the removal of trade barriers reflects growing interdependence among the Asia-Pacific and Gulf economies. As global trade dynamics shift, ASEAN and GCC members have signaled readiness to pursue deeper integration and promote open-market principles.

The ongoing dialogues highlight a collective effort to maintain economic growth amid uncertainties, with China positioning itself at the center of regional stability and development initiatives. Both ASEAN and Gulf nations are expected to continue engaging with China and other key partners in pursuit of resilient and inclusive trade arrangements.