Regional Economic PartnershipAdvanced: ASEAN-GCC-China Summit Signifies Fresh Chapter for Regional Economic Connections
Kuala Lumpur Summit
The inaugural ASEAN-Gulf Cooperation Council (GCC)-China Summit, held on May 27, 2025, marked a historic gathering, aiming to strengthen economic ties and foster closer collaboration between the Association of Southeast Asian Nations (ASEAN), the Gulf countries, and China. Malaysia's Prime Minister, Datuk Seri Anwar Ibrahim, hosted and chaired the event.
"The collective scale of ASEAN, GCC, and China offers significant opportunities to synergize our markets, deepen innovation, and promote cross-regional investment," said Prime Minister Anwar during his opening remarks, addressing over a dozen heads of state, including China's Premier Li Qiang.
The summit represented the first time ASEAN had simultaneously engaged with a regional organization, the GCC, and a major dialogue partner, China, in a diplomatic and economic capacity. The event took place amid escalating global economic volatility, with U.S. tariffs straining existing trade partnerships.
The combined economic heft of the three regions is substantial, boasting a market of over 2 billion people and a GDP near $25 trillion. The Gulf countries, benefiting from enhanced economic ties with ASEAN, have been the latter's seventh-largest trade partner, with bilateral trade exceeding $130.7 billion in 2023. However, this figure represents only about 3.5% of ASEAN's total trade, potentially indicating room for exponential growth.
Leaders at the summit emphasized a spirit of mutual respect, shared purpose, and the ambition to establish a new global cooperation model, described as "1+1+1 greater than 3," aiming to leverage the complementary strengths of each party. Key objectives included promoting economic prosperity, resilience, and sustainable development through collaboration based on mutual trust and benefit.
In finding new trade partners amid ongoing uncertainty, the leaders sought to strengthen industrial and supply chain resilience, foster sustainable trade practices, and support ongoing trade negotiations such as the ASEAN-China Free Trade Area 3.0 Upgrade and the China-GCC Free Trade Agreement.
China has been ASEAN's largest trading partner since 2009, driving economic growth in the Association through its rapid development and massive demand for raw materials, agricultural goods, and intermediate products. The summit signals a strategic shift toward greater inter-regional economic collaboration and diversification, aiming to establish a more resilient and sustainable growth framework.
With this landmark initiative, ASEAN, the Gulf countries, and China look to align trade, investment, and strategic partnerships to navigate the rapidly changing global landscape.
- The Kuala Lumpur Summit marked a significant moment in Malaysia, as it brought together key discussions about tech, finance, and business between ASEAN, China, and the Gulf countries.
- During the summit, Prime Minister Anwar emphasized the opportunities to synergize tech markets, innovate, and promote cross-regional investment, particularly between ASEAN and the Gulf countries.
- Amidst growing global economic volatility, the leaders reached a consensus to strengthen business ties, foster sustainable trade practices, and support ongoing trade agreements between ASEAN, the Gulf countries, and China.
