China is now Southeast Asia’s leading partner as US influence wanes, report says

With China’s economic clout still its “strongest card” in Southeast Asia, Beijing is continuing to gain prominence in all corners of the region as its leading external partner, according to a study released on Wednesday.

According to the Lowy Institute’s Southeast Asia Influence Index, China has an overall score of 65 out of 100, a one-point lead over its nearest rival, the United States, making it the “most influential power” in six of the region’s 11 countries: Cambodia, Indonesia, Malaysia, Myanmar, Thailand and Vietnam.

The whole region is diversifying to avoid dependence on any one power and reduce spillover risks from an intense rivalry between the US and China, the Australian think tank said, but several countries are “highly exposed” to China in specific sectors such as tourism, investment and trade.

“China is the region’s leading export market – taking around 20 per cent of all exports, compared to 16 per cent going to the United States – and is responsible for around 26 per cent of the region’s imports,” said report authors Susannah Patton, Jack Sato and Rahman Yaacob.

The index, which takes stock of activities capable of generating influence between external partners and the region’s 11 nations, comprises five areas of measurement: namely, economic relationships, defence networks, diplomatic influence, cultural influence and regional engagement.