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Would southeast Asian nations choose the U.S. over China?
A recent survey suggests that more than half of the people in Southeast Asia would favor China over the United States if compelled to make a choice.
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Growing Preference for China: A survey by the ISEAS-Yusof Ishak Institute indicates that over half of Southeast Asians would choose China over the United States, signaling a significant shift in regional preferences.
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Distrust of Beijing: Despite acknowledging China’s economic influence, respondents expressed widespread distrust of Beijing, particularly concerning its potential for economic coercion and military aggression.
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Economic Concerns Prevail: While geopolitical tensions between the US and China persist, the primary concerns for Southeast Asians revolve around economic issues such as unemployment, recession, and climate change, highlighting the region’s focus on economic stability and development.
The State of Southeast Asia 2024 survey, released this week, reveals a significant shift in preferences.
Approximately 50.5 percent of respondents expressed a preference for China, marking an increase of over 11 percentage points compared to the previous year.
This marks the first time that China has been favored over the US in the survey’s history.
China was also identified as the most influential economic power in the region by a majority of respondents, with 59.9 percent choosing it over the US.
Despite recognising China’s economic clout, the survey also highlighted widespread distrust of Beijing, with 67.5 percent of respondents expressing concerns about its growing economic influence.
ASEAN, China adopt framework for crafting code on South China Sea …
Major countries
This sentiment was particularly pronounced in countries such as Vietnam, Myanmar, Thailand, and the Philippines.
Concerns about potential coercion by China, both economically and militarily, were shared by just over half of the respondents, while 45.5 percent expressed a lack of trust in China.
Bonnie Glaser, managing director of the Indo-Pacific programme at the German Marshall Fund of the United States, characterised the survey results as reflective of the complex relationship between Southeast Asian nations and China.
Glaser said that while countries in the region acknowledge China’s growing influence, they also harbor concerns about potential economic coercion and threats to sovereignty.
Ian Chong, a non-resident scholar at Carnegie China, cautioned that the survey results should be interpreted as a snapshot of sentiments during January and February of 2024.
Chong suggested that the shift towards China may be influenced by anti-US sentiment related to geopolitical events, such as the conflict between Israel and Hamas.
Despite geopolitical tensions between the US and China, the economy emerged as the primary concern for respondents. Unemployment and the prospect of recession were cited as the top concerns, followed by climate change and intensifying economic tensions between major powers.
The survey also identified Israel’s war in Gaza as the most pressing geopolitical concern in the region, with significant attention from countries like Malaysia, Brunei, and Indonesia.
Concerns were raised about the potential for the conflict to fuel religious extremism and undermine international law and order.
News
AI stocks surge amid market shifts and spending warnings
AI sector drives economic growth; Meta adjusts strategy, Palantir’s valuation sparks questions, and Nvidia leads amid rising competition.
AI sector drives economic growth; Meta adjusts strategy, Palantir’s valuation sparks questions, and Nvidia leads amid rising competition.
The artificial intelligence sector continues to be a major driver of growth for both the U.S. and global economies. Companies at the forefront of AI innovation are influencing market trends and reshaping industries worldwide.
Meta’s stock has rebounded slightly following reports of potential cost-cutting measures and job reductions in its Reality Labs division. Investors are watching closely as the company adjusts its strategy to manage rising expenses and optimize innovation.
Palantir is trading at over 120 times forward sales and 180 times forward earnings, signaling investor confidence but also raising questions about valuation risks. Meanwhile, Nvidia maintains a market cap of $4.2 trillion as a leading AI chip supplier, yet competition is ramping up.
These moves highlight the growing tension between tech giants’ AI ambitions and the practical need to balance profits with heavy R&D spending.
Some analysts, however, warn that rapid growth may not be sustainable, with current levels of AI-related spending potentially overshooting realistic returns.
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AI investments set to surge in 2026 as companies target productivity gains
Analysts forecast $500 billion AI investment by 2026, transforming corporate spending priorities and enhancing economic productivity.
Analysts forecast $500 billion AI investment by 2026, transforming corporate spending priorities and enhancing economic productivity.
Analysts predict that artificial intelligence companies could invest over $500 billion in 2026, signaling a major shift in corporate spending priorities. This surge in capital allocation comes as businesses look to harness AI to drive growth and efficiency across multiple sectors.
Following strong third-quarter earnings, overall capital spending estimates for 2026 have been revised upward. However, investors are becoming more selective, focusing on companies that can clearly demonstrate revenue benefits from their AI investments, separating hype from tangible results.
AI adoption is expected to boost economic productivity, with significant investment already flowing into AI infrastructure such as semiconductors and data centres. The coming year could redefine how companies leverage technology to gain a competitive edge.
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Stocks, AI and the economy: What to expect in 2026
2025’s market turmoil analyzed: AI hype, tariffs, global politics, and Federal Reserve impacts—tune in for expert insights!
2025’s market turmoil analyzed: AI hype, tariffs, global politics, and Federal Reserve impacts—tune in for expert insights!
2025 has been a rollercoaster for investors, with AI hype, tariffs, and global politics shaking up markets. We break down what these trends mean for your portfolio and the risks ahead.
Joining us for insights is Kyle Rodda from Capital.com, who explains how Treasury yields, unemployment data, and inflation readings are shaping investor sentiment. We also dive into what the Federal Reserve’s recent moves could mean for 2026.
From the potential impact of a 43-day government shutdown to payroll numbers and market expectations, this episode gives you the clarity you need to navigate the next year in stocks.
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