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U.S. President Barack Obama announced a new U.S.-ASEAN Connect initiative at the two-day U.S.-ASEAN leaders’ meeting held at the Sunnylands Center in Rancho Mirage, California, on February 16. The initiative will create a network of hubs to better coordinate U.S. economic engagement in the region and better connect entrepreneurs, investors, and businesses and generated positive responses from ASEAN members.
The meeting was symbolically significant in two ways. The first was that the location, Sunnylands, was also the same locale where Obama first hosted Chinese President Xi Jinping in 2013. The second and most obvious is that the timing of the meeting, which by definition excludes China, also comes against a backdrop of growing Chinese influence in the Asia-Pacific region.
Yet if the Obama administration had hoped that ASEAN nations would mention China and their territorial contests in the South China Sea in its joint statement at the end of the meeting, its wish was not granted.
In actuality, most ASEAN nations traditionally take a neutral stance in the power struggles between major countries, hoping to establish constructive relations with both China and the United States without taking sides.
The United States’ carrot
From an economic perspective, closer cooperation between ASEAN and the United States can help achieve beneficial results for both sides. Though many ASEAN countries have witnessed rapid development in recent years, some countries are still troubled by poverty and domestic conflicts. If the United States can increase its investment in ASEAN countries and boost bilateral economic activities, it will be of great help in accelerating the economic development of individual countries and the Southeast Asian region as a whole.
Despite the pockets of poverty, it is estimated that by 2030, ASEAN could have become the fourth largest economy in the world. And Southeast Asia, as a region with 620 million people and an average annual GDP growth rate reaching 4.6 percent, offers tremendous market potential, including for the United States. Therefore strengthening bilateral economic cooperation would also bring enormous economic benefits to American businesses.
Nonetheless, some observers claimed that the Obama administration’s efforts to strengthen ties with ASEAN nations is not simply to achieve economic benefits, but also to solidify the American president’s political legacy as he is in his last year in office.
The meeting was symbolically significant in two ways. The first was that the location, Sunnylands, was also the same locale where Obama first hosted Chinese President Xi Jinping in 2013. The second and most obvious is that the timing of the meeting, which by definition excludes China, also comes against a backdrop of growing Chinese influence in the Asia-Pacific region.
Yet if the Obama administration had hoped that ASEAN nations would mention China and their territorial contests in the South China Sea in its joint statement at the end of the meeting, its wish was not granted.
In actuality, most ASEAN nations traditionally take a neutral stance in the power struggles between major countries, hoping to establish constructive relations with both China and the United States without taking sides.
The United States’ carrot
From an economic perspective, closer cooperation between ASEAN and the United States can help achieve beneficial results for both sides. Though many ASEAN countries have witnessed rapid development in recent years, some countries are still troubled by poverty and domestic conflicts. If the United States can increase its investment in ASEAN countries and boost bilateral economic activities, it will be of great help in accelerating the economic development of individual countries and the Southeast Asian region as a whole.
Despite the pockets of poverty, it is estimated that by 2030, ASEAN could have become the fourth largest economy in the world. And Southeast Asia, as a region with 620 million people and an average annual GDP growth rate reaching 4.6 percent, offers tremendous market potential, including for the United States. Therefore strengthening bilateral economic cooperation would also bring enormous economic benefits to American businesses.
Nonetheless, some observers claimed that the Obama administration’s efforts to strengthen ties with ASEAN nations is not simply to achieve economic benefits, but also to solidify the American president’s political legacy as he is in his last year in office.