The first ASEAN-GCC-China summit opens today in Kuala Lumpur, a symbolic and strategic location at the crossroads of Asia and the Gulf. Indeed, this gathering marks a significant moment in the evolving architecture of South-South diplomacy. It also signals China’s clear shift toward the Global South. This pivot began in earnest with the 2018 U.S.-China trade war launched under the Trump administration.
Instead of engaging in the sterile confrontational logic preferred by Washington, China is forging pragmatic ties with its neighbors and emerging partners, near and far. These efforts are crystallizing in what Beijing quietly frames as a “revolution of economic development.” This revolution is driven by trade, infrastructure, and capital flows rather than ideology or military alliances.
ASEAN-GCC-China: Strategic Convergence
This trilateral summit brings together ASEAN¹, the Gulf Cooperation Council (GCC)², and China—not just for ceremonial diplomacy. In fact, it represents a tectonic shift in how global trade and financial relations are organized. Over the past five years, China and the Gulf states have engaged in direct investment flows. They often bypass the U.S. dollar by using national currencies or intermediaries like the Hong Kong financial center. Moreover, this surge in Gulf investments complements China’s outbound infrastructure and energy projects in the Gulf.
“A diplomat close to the summit reportedly said, ‘The aim is not to provoke a confrontation with the West, but to insulate growth from global financial turbulence.’“Read more on Reuters.
The Real Story: De-dollarization on the Agenda
While formal declarations may emphasize trade and connectivity, the subtext of this summit is deeply geopolitical: de-dollarization. China, along with other BRICS members, has accelerated efforts to build a multipolar financial system. The goal is to reduce reliance on the greenback. The mechanisms being developed range from bilateral swap agreements and digital currency platforms to the use of local currencies in oil and gas trade. This is especially true with the Gulf states.
Therefore, the ASEAN-GCC-China summit represents more than a regional alignment. It reflects the emergence of a new global financial logic. The U.S. dollar is no longer the uncontested medium of exchange. This quiet revolution is monetary as much as diplomatic. China is placing itself at the heart of it.
Conclusion
With its opening in Kuala Lumpur, the ASEAN-GCC-China summit stands as a turning point in global affairs. It blends economic pragmatism, South-South cooperation, and monetary rebalancing. In this convergence, China’s role as a leader of de-dollarization and alternative globalization is becoming more apparent—and perhaps, more permanent.
Notes :
¹ ASEAN = Association of Southeast Asian Nations
² GCC = Gulf Cooperation Council
Photo : Syaiful Redzuan – Anadolu Agency via Middle East Monitor.
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