ASEAN: From ‘Circumvention Export Hub’ to ‘Value Creation Hub’ — SkimNews
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- ASEAN faces a structural squeeze: deeper production dependence on Chinese intermediate goods is raising US suspicions that the region is a hub for Chinese goods being rerouted to third-country markets, while abruptly severing that dependence would damage ASEAN's own industrial base.
- The United States has distanced itself from the GATT/WTO free trade order, imposed unilateral high tariffs in the name of reciprocity, and shown little inclination to open its own markets — leaving ASEAN without an unconditionally reliable partner.
- A "Made in ASEAN 2.0" proposal would shift ASEAN from assembly and export to a high value-added hub covering R&D, design, components, materials, production, certification, and services — without excluding China from component sourcing.
- Japanese companies should pivot from "making in ASEAN" to "creating value in ASEAN," applying decades of accumulated expertise in human resource development, local supplier formation, and production management to EVs, semiconductors, digital solutions, AI, green transformation, and critical minerals.
- The ASEAN Geoeconomics Report 2025 proposed reviving a common external tariff (CET) to support intra-regional procurement of parts and formation of regional supply chains — an old idea the report says is worth bringing back.
- Japan and ASEAN should rebuild free trade rules through existing frameworks — CPTPP, RCEP, AFTA, and the Japan-EU EPA — to connect middle powers such as the EU, Canada, Australia, South Korea, and India into an open, non-polarized network that complements the WTO.
Why it matters: ASEAN's growth model is already triggering American suspicion — deeper dependence on Chinese intermediate goods is raising fears of goods circumvention — while abruptly cutting China ties would break the region's industrial base. The Japan-backed 'Made in ASEAN 2.0' blueprint offers a third path: capturing value domestically across EVs, semiconductors, AI, and critical minerals without excluding Chinese supply chains.
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