As China’s economic and military capabilities continue to develop rapidly, Southeast Asia has emerged as a strategic region and an area of potential conflict between China and the United States. Although Southeast Asian countries gained independence relatively recently, regional powers and the U.S. have attempted to exert their influence over these states and to secure diplomatic ties with them. Today, in addition to Thailand, Vietnam, the Philippines, India and China, the United States has strategic and economic interests in the South China Sea and has committed naval forces and other assets to the region. In fact, U.S. Secretary of State Hilary Clinton has declared an open South China Sea to be an American “national interest,” and the U.S. has recently finalized plans to construct a new military base in Perth, Australia to increase its presence in Southeast Asia. Increasingly, then, Southeast Asia represents both a bellwether of growing Chinese power and aggression and an unprecedented opportunity for the United States and its allies to act as a counterweight to Beijing.
The region’s waterways are vital to the global economic supply chain and free-navigability is key to continued prosperity in the immediate area and beyond. Approximately a quarter of the world’s oil passes through the Malacca Straits, destined to supply China and Indonesia as well as Japan, South Korea, and Taiwan. Over $5 trillion worth of trade is conducted in the region every year—with more than a fifth of which is American. Moreover, much of the world’s computer manufacturing is performed in the region, with factories in each nation performing complementary tasks towards a final product. The important trade routes in this area thus make it vital from both an economic and geopolitical standpoint.
One of the most important developments in the region has been the increasingly contentious dispute over sovereignty in the South China Sea. Vietnam, the Philippines, and China continue to tussle over control of the Sea and the small islands lying above potential oil and gas reserves —estimated to match Kuwait’s. China, contrary to the conventional understanding of territorial waters (which is based upon distance from the continental shelf under the Law of the Sea), has claimed the entire sea for itself based on its asserted historical sovereignty. While other nations have made such claims in the past, Beijing has shown a startling willingness to enforce them aggressively in recent years. The Chinese navy has had no compunction about sinking Vietnamese fishing vessels and has even warned oil giant Exxon Mobil last year not to explore for oil and gas resources with Vietnamese licenses and grants. Chinese forces have also been deployed to islands disputed by the Philippines, further demonstrating their aggressive commitment to using military prowess to claim control.
Most analysts agree that these moves represent just the beginning of China’s expansion of regional influence as Beijing’s economic power increases. China has backed up its aggressive territorial claims with a military strategy to project its rising power. In August, the Chinese military began sea trials for its first aircraft carrier (refitted from an older Soviet model) and has started to test its first stealth bomber. In addition, to counterbalance American defense strategy, Beijing is also developing anti-aircraft systems and satellites (which underpin communications and guidance systems) that potentially target American bases in the Philippines, South Korea, Australia, Japan, and elsewhere in the Pacific. In addition, the Chinese military has also invested in area denial weapons systems to counter American air superiority and hinder the movement of American forces. Moreover, defense experts warn that Beijing is honing cyber warfare capabilities that have already been used to successfully access U.S. defense contractors’ sites as well as commercial sites. The intellectual yields of such intrusions have already gone into China’s new stealth bomber design. Recent reports also suggest that China’s cyber attacks targeted two American weather satellites and briefly gained command of one of them, further illustrating Beijing’s increased capability to interfere with American military communication and surveillance infrastructure.
Such tactics, coupled with China’s economic clout, have begun to radically alter the dynamics within the region. Chinese aid, investment, and trade have been increasing in recent years as joint Sino-Vietnamese business ventures and Chinese support for Filipino infrastructure projects have become the norm in the region. This economic power translates into political influence, resulting in pro-China foreign policies emanating from regional governments. In fact, several nations in the region have disregarded the Office of the United Nations High Commissioner for Refugees’ (UNHCR) conventions by repatriating Uyghur activists and dissidents back to China, where they face nearly certain persecution, imprisonment, and even torture or execution.
Nonetheless, Southeast Asia, through the Association of Southeast Asian Nations (ASEAN), has increasingly sought to counterbalance China by fostering ties with other states, most notably the United States—but also India, Japan, and others. In an interesting turn of events, American naval ships have increasingly berthed (and been repaired) in Vietnam, and the nation has become one of the largest recipients of American aid. The United States has also approved sales of defense equipment to Thailand, Vietnam, Taiwan, and other states. Regional powers have also stepped up their commitment to the region. Japan has pledged to increase trade and upgrade its submarine fleet and Australia has geared up for a decade-long upgrade to its naval and military assets.
Diplomatic relations between the various players in the region and the United States have warmed significantly as the U.S. remains the dominant sea power and has used its naval prowess to support regional nations against Beijing’s clout. In fact, domestic attitudes in regional nations toward Beijing have begun to turn negative. For instance, in spite of growing trade and economic engagement with Beijing, last year, Vietnam halted a joint Sino-Vietnamese venture to extract bauxite, a mineral essential to China’s industries. The fact that outcry from many Vietnamese (including Buddhist monks, environmentalists, and bloggers) countered Beijing’s pressure is indicative of regional anxiety over China’s influence.. Moreover, one of America’s staunchest allies in the region, Thailand, has strengthened its relations with Washington despite a military coup and riots in recent months. On another front, U.S.-Burma relations have begun to defrost after decades of sanctions, and some progress might be made in establishing democratic institutions and freeing political prisoners. These diplomatic successes have not gone unnoticed by China as Washington and Beijing pursue different objectives.
As Southeast Asia continues to experience high rates of economic growth, the region will become increasingly important in the global economy. At the same time, the area encompasses some of the busiest maritime routes in the world as well as some of the most lucrative and promising natural resources. Both factors guarantee that China, other Southeast Asian countries, and the U.S. will jockey for regional influence. China has made a strong showing in the region and undoubtedly exerts a strong hand in the affairs of the region. Nonetheless, as many Southeast nations have expressed, there must be a “balance” to maintain peace and prosperity. China’s willingness to use its economic clout, aggression, and coercion further hint at the urgency of maintaining a balanced power structure in the region.
The United States is in a unique position to counterbalance Beijing growing aggression. Washington has the opportunity to increase engagement with regional nations through military and economic cooperation. Increased American naval presence can reassure regional governments of the U.S.’s commitment to countering Chinese intimidation and pressure. Encouraging Japan and India to also establish and strengthen relationships in the region will give those nations an incentive to counter Beijing to protect their interests. Moreover, highlighting Beijing’s continued horrendous human rights violations and supporting dissidents will weaken China’s prestige and force officials to turn inwards rather than pressure neighbors.
The rising boldness of Beijing in pursuit of its interests suggests that the American presence must increase. Although domestic debates in the United States threaten to cut defense budgets, defense spending represents an investment in future stability to develop more ties to Southeast Asia. Along with military support, increased economic and political engagement with Thailand, Vietnam, Burma, the Philippines, and other nations is necessary to cement ties with regional capitals. While India and Japan have essential parts to play in maintaining peace in the region, the United States, on account of its military and economic power, is uniquely positioned to preserve its national interest and that of its allies by maintaining the freedom of the seas, open shipping lanes, and an independent Southeast Asia.


