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Southeast Asia needn’t take sides in US-China tech rivalry: Specialists
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Southeast Asia needn’t take sides in US-China tech rivalry: Specialists

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Last updated: July 8, 2025 11:51 pm
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Published: July 8, 2025
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U.S. and China choicesSoutheast Asia’s edgeChief in AI regulation? 

A customer watches an AI signal on an animated display on the Cell World Congress, the telecom trade’s largest annual gathering, in Barcelona.

Josep Lago | Afp | Getty Photos

As China and the U.S. compete in synthetic intelligence, Southeast Asia ought to draw from the very best of each nations whereas constructing its personal applied sciences, panelists stated at CNBC’s East Tech West 2025 convention on June 27 in Bangkok, Thailand.

Julian Gorman, head of Asia-Pacific at cellular community commerce group GSMA, stated it might be a damaging growth if Southeast Asia was pressured to decide on between both superpower. 

“Southeast Asia could be very depending on each economies, each China and America. I believe it is fairly exhausting to contemplate that they’d go someway,” Gorman stated. 

“It is essential that we proceed to deal with not fragmenting the know-how, standardizing it, and dealing in order that know-how transcends geopolitics and finally is used for good,” he added. 

The unfold of U.S. and Chinese language AI corporations into new world markets has been a giant pattern this yr as each Beijing and Washington search extra world affect in superior applied sciences. 

U.S. and China choices

Based on George Chen, managing director and co-chair of digital observe for The Asia Group, Southeast Asia had initially been leaning in direction of AI fashions from the U.S., resembling these from Google and Microsoft. 

Nonetheless, the emergence of China’s DeepSeek has propelled the recognition of the corporate’s fashions in Southeast Asia on account of its low value and open-source licensing, which can be utilized to construct on and adapt fashions to regional priorities. 

Open-source usually refers to software program by which the supply code is made freely obtainable, permitting anybody to view, modify and redistribute it. Giant language mannequin gamers in China have been leaning into this enterprise mannequin since DeepSeek’s debut. 

Earlier panels at East Tech West have flagged open-source fashions as an vital instrument for areas exterior of China and the U.S. to construct their very own sovereign AI capabilities.

In the meantime, on the {hardware} facet, the U.S. stays a pacesetter in AI processors by way of chip large Nvidia. Whereas the U.S. has restricted China’s entry to those chips, they continue to be available on the market for Southeast Asia – which Chen steered the area proceed to benefit from. 

Nonetheless, Chen famous that there’s a risk that the AI panorama may change dramatically in a decade, with China with the ability to present extra reasonably priced alternate options to Nvidia. 

“Do not take a facet simply and too rapidly. Take into consideration find out how to maximize your financial potential,” he steered. 

GSMA’s Gorman identified that going through this “balancing act” between the superpowers just isn’t new for Southeast Asia. For instance, the area’s mobility trade closely depends on Chinese language tech manufacturing and {hardware}, in addition to the U.S. in different areas resembling telecommunications.

Southeast Asia’s edge

Although the U.S. and China are clearly forward in constructing superior AI fashions, Southeast Asia has its personal edge within the world AI house, panelists stated. 

“If you concentrate on AI as a know-how, ultimately it’s essential apply it to an actual services or products. That is how folks can use it,” stated The Asia Group’s Chen.

The area has a robust app setting which provides “nice potential,” he added. “The demographic is younger, which suggests the potential for expertise is all the time there, and R&D value is comparatively cheaper than different locations.”

Price issues have already contributed to Malaysia’s progress as a world powerhouse in AI information facilities and computing, significantly within the southern Johor area.

Nonetheless, Southeast Asia ought to intention to usher in corporations with superior capabilities that home industries can study from and profit from – a method that China employed to catch as much as the West in superior applied sciences, stated Chen.

Chief in AI regulation? 

Based on GSMA’s Gorman, Southeast Asia can function a impartial floor between China and the U.S., the place the 2 sides can come collectively and have interaction in high-level dialogues on find out how to apply AI responsibly.  

Southeast Asia may also play a proactive function in AI regulation itself, he stated, citing current examples of regulatory management from the area, resembling Singapore’s Shared Duty Framework for tackling worldwide scams and fraud. 

Thus far, there have been few world rules on AI. Whereas the EU has adopted a coverage, the U.S. and ASEAN nations have but to observe go well with. 

Chen added that the area might want to band collectively and undertake widespread frameworks to realize a extra outstanding seat on the desk of world AI growth and regulation. 

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