A recent report from the ISEAS-Yusof Ishak Institute: “An interesting case of the slow perception of US economic influence in ASEAN” provides fascinating insight into the economic influence of China and the United States in Southeast Asia.
Since the launch of the State of Southeast Asia Survey in 2019, China has consistently been viewed because the strongest economic power within the region, although support for China has fallen from 75.2% in 2019 to 59.5% in 2024. Despite this decline, China they lag far behind the United States and ASEAN as a corporation, which recorded 14.3% and 16.8% respectively in the newest survey.
The rapid development of Chinese consumer brands has been a key consider China’s dominance in ASEAN. According to Kantar, Chinese brands, especially those involved in consumer technology services and products comparable to Lenovo and ByteDance, currently dominate the regional market, especially within the ASEAN-6 region.
Of the world’s 25 largest brands, the bulk are from China, with 7 of them specializing in technology services, 13 in consumer technology and 4 in automotive, including BYD, with Huawei covering two categories.
Meanwhile, U.S. brands remain strong but rely more heavily on older names comparable to Microsoft, Apple and Google and are less consumer-focused than in China.
On the diplomatic front, China also has the excellence of getting more bilateral meetings than the United States, with 46 meetings in 2021 in comparison with 40 for the United States. China’s “seen and remembered” strategy is further strengthened by the proven fact that latest leaders from Southeast Asian countries comparable to Malaysia, Thailand and Indonesia are increasingly selecting China because the destination for his or her first visit abroad.
While perceptions of U.S. economic influence in ASEAN differ from those of China, data shows that the United States has a transparent advantage when it comes to investment and trade. The United States accounts for 20% of foreign direct investment (FDI) in ASEAN and is the essential destination for 15% of the region’s exports, well ahead of China, which generates only 2% of FDI and 16% of ASEAN exports.
US investment also dominates the manufacturing and financial services sectors, with manufacturing FDI expected to succeed in $20.2 billion in 2022 in comparison with $5.4 billion from China. In the greenfield investment category, the United States stands out within the areas of data and communications (55%) and electronics and electrical equipment (14%).
