A new China-ASEAN-GCC partnership is building alternative trade routes and digital platforms amid Red Sea disruptions, boosting regional economic integration.

A new trilateral partnership among China, ASEAN, and the GCC is advancing rapidly, driven by shared concerns over supply chain disruptions, particularly during Red Sea crises. Initiated by the May 2025 Kuala Lumpur summit, the collaboration focuses on building alternative trade routes, resilient infrastructure, and digital trade platforms, with China supporting projects via its Belt and Road Initiative. Gulf states are increasing long-term investments in Southeast Asia’s renewable energy, electric vehicles, and food security, reflecting a strategic shift toward Asia’s economic center. Pilot local-currency settlement systems in yuan-ringgit and yuan-dirham launched in mid-2025 aim to reduce financial volatility and boost the renminbi’s use. While challenges remain in digital governance and regional security, the alliance marks a growing, development-focused, multipolar economic trend.