Smaller states caught between rock and a hard place

SINGAPORE (May 15): Growing geopolitical tensions and disrupted trade has put Southeast Asian economies in a rather difficult geo-economic position. Long having prospered by maintaining ties with both Washington and Beijing and capitalising on its strategic location on the India-China trade route, countries like Singapore have claimed the role of an “honest broker” between the great powers to stabilise potential great power rivalry. However, a more polarised US-China relationship may render this position less tenable. 

“We need to avoid creating rival economic blocs or a bifurcated global economy, forcing countries to choose sides,” declared Prime Minister Lee Hsien Loong at the UN General Assembly last year. “To have to choose between them...is going to be a very difficult choice...Even some of the allies of the United States...such as Australia, have said that they would very much prefer not to have to choose sides,” he added at a forum in Mexico City. 

“Most of the Asean countries have repeatedly said that they do not want to be put in this position of having to choose between the US and China,” says NUS don Khong. However, as seen by the disputes flaring over the Trans-Pacific Partnership (TPP), the Asian Infrastructure Investment Bank (AIIB), China’s Belt and Road Initiative (BRI) and Huawei’s 5G, sitting on the fence has become increasingly difficult, he adds.

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