China's expansive South China sea claims fuel regional instability, trade risks, ASEAN warns

Jul 10, 2025

Kuala Lumpur [Malaysia], July 10 : The Association of Southeast Asian Nations (ASEAN) has urged all parties involved in the South China Sea dispute to act with "wisdom and prudence" to preserve regional peace and safeguard global trade, the South China Morning Post (SCMP) reported on Thursday.
Speaking at the ASEAN-China meeting in Kuala Lumpur, Malaysia's Foreign Minister Mohamad Hasan warned that rising geopolitical tensions, particularly between China and the United States, posed serious risks to regional security and the global economy. "We must therefore ensure that geopolitical tensions do not escalate or threaten to undermine security and global trade in the South China Sea," he said, as quoted by SCMP.
The remarks come as tensions grow between Beijing and Washington over both trade and territorial issues. ASEAN member states have long walked a diplomatic tightrope, relying on the US for regional security while deepening trade ties with China, the SCMP reported. That balance is being tested further by the looming imposition of 40 per cent US tariffs on Chinese goods, set to take effect on August 1, following President Donald Trump's recent trade announcement.
At the heart of ASEAN's concern is China's expansive claim over the South China Sea, based on a controversial 10-dash line map. The waterway, which sees over USD 3.5 trillion worth of trade annually, is claimed in part by multiple ASEAN members, including the Philippines, Vietnam, and Malaysia. China's growing military presence and island-building in contested areas have raised alarms across the region, according to SCMP.
Mohamad Hasan also referenced ongoing talks on the long-delayed Code of Conduct (COC) in the South China Sea. "We are confident that with the full commitment of all parties in the negotiations, we should be able to conclude an effective and substantive COC in the not-too-distant future," he said, as reported by SCMP.
China was represented at the meeting by Foreign Affairs Minister Wang Yi, who met ASEAN ministers ahead of a series of talks involving other key partners, including Russian Foreign Minister Sergey Lavrov and US Secretary of State Marco Rubio as well as top diplomats from Australia, Canada, New Zealand, Japan and South Korea.
According to SCMP, Rubio, the highest-ranking US official to visit the region since Trump's return to office, was also scheduled to meet Malaysian Prime Minister Anwar Ibrahim later in the day.
ASEAN continues to emphasise neutrality and unity amid growing pressure to choose sides. Still, the region remains deeply vulnerable to the global rivalry between China and the United States, the South China Morning Post reported.