All Things Policy ASEAN navigating the US-China Rivalry
Jan 16, 2026
Bhumika Sevkani, a research analyst at the Takshashila Institution specializing in Southeast Asian economies, joins Vanshika Saraf to dive deep into the impacts of the China+1 strategy. They discuss how ASEAN countries are navigating the US-China rivalry, particularly which sectors like electronics and critical minerals are benefiting the most. Bhumika highlights the uneven gains among nations and emphasizes the need for regional coordination and internal reforms to sustain growth amidst shifting global supply chains and US tariff pressures.
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Why ASEAN Became The Natural China+1 Choice
- The China Plus One shift accelerated after the 2018 trade war and COVID disruptions, making ASEAN an attractive alternative to China for firms.
- ASEAN's existing role in electronics, low costs, and geographic proximity made it a natural beneficiary, not a brand-new winner.
Reforms And Integration Multiplied Gains
- ASEAN's reforms and regional integration amplified its attractiveness to investors during the China Plus One shift.
- The bloc's collective frameworks and integrated production networks strengthened investor confidence and trade ties.
Use Single-Window And RCEP To Prevent Rerouting
- Use ASEAN-wide systems like the single-window to meet stricter rules of origin and block pure trans-shipment of Chinese goods.
- Negotiate regional trade upgrades to convert rerouting into genuine value addition for member states.