China Helping ASEAN Countries to Ditch the US Dollar

With ASEAN echoing calls for a multipolar world, a new nation has now joined this narrative to further injure the US dollar’s prestige. China has decided to ally with ASEAN nations to bolster the community prospects between the two groups and, at the same time, work towards common goals that assist in establishing a nuanced world order.

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ASEAN and China: What’s Happening?

In a recent roundtable address dubbed the 37th Asia Roundtable, China’s ambassador to Malaysia, Ouyang Yuijing, presented a new world perspective that ASEAN and China could collectively work on. Banking on the theme of “Crisis in an Interregnum,” Ouyang reiterated how China is keen to work with ASEAN to bolster and implement the three global initiatives.

The intent behind spearheading such endeavors is solely focused on fostering long-term community development between the two allies.

Ouyang later shared that the nation is willing to negotiate discussions on version 3.0 of China-ASEAN trade areas as well as conduct a thorough analysis on implementing the Regional Comprehensive Economic Partnership.

“Firstly, we should focus on the common development and the jobs that turn the region into a model of GDI cooperation, caring for their practical needs and long-term goals. GDI aims to foster a new momentum for global common development,” Ouyang shared.

The event also discussed key global proceedings, including how the new world is shifting its focus towards exploring multipolar narratives.

“What is clear is that unipolarity, and perhaps even bipolarity, is on its way out,” Mohd Faiz, Chairman of the Institute of Strategic and International Studies, later shared.

How Does This Alliance Impact the US Dollar?

The 37th Asia Symposium also consisted of discussions outlining whether the global south should support China or the US.

ASEAN has always been vocal about promoting regional concepts and currencies, an idea that China deeply resonates with. The two collective forces can pose a threat to the US dollar in light of the changing world order that continues to promote the regional currency narrative.

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With inflating US debt metrics coupled with the global devaluation of the USD, the world’s focus is now inching towards finding a worthy alternative that helps them secure their base and, at the same time, derails the prestige of the US dollar as a global currency reserve.

“The real choice is whether China or the United States—or both China and the United States—are doing the right thing or the wrong thing. If China does the right thing, we want to learn from it. If the United States is doing the wrong thing, why do we follow in their footsteps?” as shared by Victor Gao Zhikai, vice president of the Beijing-based Center for China and Globalization.

However, the symposium later reiterated how improving US-China relations is their top priority and that the nations are working towards ironing out their differences.

“We’re also seeing cooperation for possible joint law enforcement (and) contract audits. We’re seeing discussions about issues including the Gaza crisis. So, we are basically seeing a lot of (cooperation) activities happening between the two, which then helps to mitigate the tense relations.” Yun Sun, a senior fellow at the Stimson Center in Washington shared.