ASEAN must strike a balanced AI relationship with China

Authors: Kelly Forbes and Cass Maughan

Published: 03 July 2026

 

China’s growing dominance in AI infrastructure, open-source models and digital services offers ASEAN significant economic opportunities, but deepening integration carries risks of technological dependency, reduced sovereignty and diplomatic friction with the United States. To capture the gains without ceding strategic autonomy, ASEAN must hedge by sourcing AI infrastructure from multiple ecosystems, invest in domestic AI capability and leverage its data resources and infrastructure attractiveness to negotiate with China on stronger terms.

 

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