ASEAN Secretary-General Kao Kim Hourn stressed at the Shangri-La Dialogue that US-China tension-easing efforts are vital for South-east Asia. He urged the “constructive strategic stability” framework to translate into regional peace, while emphasizing ASEAN’s commitment to avoiding coercion and choosing sides.

Key Points

• ASEAN Secretary-General Kao Kim Hourn emphasized at the Shangri-La Dialogue that US-China efforts toward “constructive strategic stability” are vital for South-east Asia, as both superpowers are the region’s most consequential security and economic partners, following tensions sparked by sweeping tariffs and trade disputes since early 2025.

• Panellists highlighted pressure on smaller nations, with Lithuania and New Zealand drawing parallels between geopolitical coercion in Europe and Asia, stressing the importance of upholding international rules and collective regional cooperation.

• Dr Kao addressed rising defence spending concerns and Myanmar’s crisis, supporting recalibrated ASEAN engagement including virtual talks with Myanmar’s foreign minister, while maintaining the Five-Point Consensus peace plan remains active.

US-China Relations and ASEAN’s Strategic Priorities

The easing of tensions between the United States and China represents a critical development for South-east Asia, according to ASEAN Secretary-General Kao Kim Hourn, speaking at the Shangri-La Dialogue on May 30. Dr Kao emphasized that both superpowers are ASEAN’s most consequential security and economic partners, making their relationship of direct regional importance. The newly introduced framework of “constructive strategic stability” — built on the idea that competition and cooperation can coexist — emerged following meetings between President Trump and President Xi in May, offering cautious optimism for regional peace and development.

Trade War Tensions and the Path Toward Normalization

Sino-American relations deteriorated sharply after Trump’s return to office, with sweeping tariffs reaching 145 per cent, triggering Chinese retaliatory measures including export controls and restrictions on rare earths and critical minerals. A partial breakthrough in October 2025 saw tariff reductions and resumed trade flows, though full normalization only followed the May Trump-Xi summit. Dr Kao stressed that ASEAN nations must be able to pursue security and prosperity without coercion or being forced to choose sides, underscoring the bloc’s firm commitment to strategic independence amid intensifying great-power rivalry.

Geopolitical Pressure, Defense Spending, and the Myanmar Crisis

Smaller nations facing geopolitical pressure was a recurring theme at the plenary session, with Lithuania’s Defense Minister drawing parallels between European and Asian coercion tactics, and New Zealand’s Defense Minister advocating collective regional strength. On rising defense expenditure, Dr Kao cautioned that diverting resources toward military spending is “not very healthy,” reaffirming ASEAN’s preference for preventive diplomacy. Regarding Myanmar, Dr Kao signaled a recalibration of engagement, with ASEAN foreign ministers agreeing to a virtual meeting with Myanmar’s counterpart — a notable shift — while reaffirming the Five-Point Consensus peace plan remains the guiding framework.

Source : Easing of US-China tensions crucial for South-east Asia: ASEAN chief