Shangri-La Dialogue 2026

Moves by US and China to ease tensions crucial for S-E Asia, says ASEAN chief

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(From left) ASEAN Secretary-General Kao Kim Hourn, International Institute for Strategic Studies executive chairman John Chipman, New Zealand Defence Minister Chris Penk and Lithuania's Minister of National Defence Robertas Kaunas.

(From left) ASEAN Secretary-General Kao Kim Hourn, International Institute for Strategic Studies executive chairman John Chipman, New Zealand Defence Minister Chris Penk and Lithuania's Minister of National Defence Robertas Kaunas.

ST PHOTO: KEVIN LIM

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  • ASEAN Secretary-General highlighted US-China easing tensions are crucial for South-east Asia's stability and development.
  • Panellists emphasised how smaller nations face significant geopolitical pressure.
  • Dr Kao cautioned against aggressive military spending, advocating preventive diplomacy.

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SINGAPORE – Recent steps by the US and China to ease tensions are crucial for South-east Asia, as the relationship between the two major powers has “direct and immediate consequences” for the region, said ASEAN Secretary-General Kao Kim Hourn on May 30.

Speaking at a plenary session at the Shangri-La Dialogue, titled “Priorities within Asia’s shifting strategic landscapes”, Dr Kao highlighted how the two superpowers’ commitment to “constructive strategic stability” marks a vital shift in perspective.

Built on the premise that the two countries can compete, yet cooperate on matters of mutual interest, the framework was introduced in the wake of meetings between US President Donald Trump and his Chinese counterpart Xi Jinping in May.

“For ASEAN, this really matters,” said Dr Kao, a former Cambodian diplomat. “The US and China are our two most consequential security and economic partners.

“We hope and expect that this... framework will translate into policy and behaviour that tangibly contribute to regional peace, stability and development.”

Relations between Washington and Beijing have been tense since Mr Trump returned to office, restarting a trade war by imposing sweeping tariffs in April 2025.

Coupled with fentanyl-related duties imposed on Chinese goods, this drove their levies to as high as 145 per cent. This drew retaliatory moves from China by way of reciprocal tariffs, expanded export controls, and restrictions on the export of rare earths and critical minerals.

A small breakthrough in October 2025 saw the US slash its tariffs imposed on China, while the East Asian nation resumed exporting rare earths and began buying US agricultural goods again. 

It was only after the latest May meeting between Mr Trump and Mr Xi that relations between the two countries somewhat normalised.

On May 30, Dr Kao reiterated that ASEAN member states are committed to pursuing security and economic prosperity, “without fear of coercion and without being forced to choose sides”.

Pressure on smaller nations was a central theme echoed by fellow panellists – New Zealand’s Defence Minister Chris Penk and Lithuania’s Minister of National Defence Robertas Kaunas.

Mr Kaunas drew a parallel to Russia’s invasion of Ukraine in February 2022, and how Lithuania had been coerced by way of economic, political and information operations. 

He made the point that smaller Asian nations face similar geopolitical pressure from larger neighbours.

Meanwhile, Mr Penk spoke about how New Zealand is most dependent on the Indo-Pacific region, saying “we are stronger together than when we act apart”.

He also pledged to work with partner countries to ensure international rules and norms are upheld in the region.

At the plenary session, moderated by International Institute for Strategic Studies executive chairman John Chipman, Dr Kao also took questions on aggressive military spending, as well as the situation in Myanmar.

Noting that an increasing number of countries are spending more on defence, he said it is “not very healthy” to divert resources from other needs into the military.

He said ASEAN has long invested in preventive diplomacy through various partnerships and forums. He cited the bloc’s last three decades of work to establish “clear, strategic trust” in the region. 

On Myanmar, Dr Kao stressed the need to recalibrate engagement with the South-east Asian country, which has been under military junta rule since a coup in February 2021.

An idea mooted among ASEAN member states was to include the country’s foreign minister in talks. 

South-east Asian foreign ministers have since agreed to a virtual meeting with their counterpart from Myanmar, marking a shift from ASEAN’s ban on the country’s military leaders from attending high-level meetings since the military coup.

“On one hand, you (have) to listen to Myanmar (to find out) what is happening on the ground.

“But at the same time, it is for Myanmar to listen to the concerns of ASEAN,” Dr Kao said, adding that ASEAN’s peace plan to resolve the crisis in Myanmar, known as the Five-Point Consensus, remains in place.

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