A recent report by the ISEAS-Yusof Ishak Institute, "The Curious Case of Sluggish US Economic Influence Perceptions in ASEAN," provides fascinating insights into the economic influence of China and the United States in Southeast Asia.
Since the State of Southeast Asia surveys began in 2019, China has consistently been seen as the strongest economic power in the region, although support for China has decreased from 75.2% in 2019 to 59.5% in 2024. Despite this decline, China remains far ahead of the United States and ASEAN as an organization, which recorded 14.3% and 16.8%, respectively, in the latest survey.
China's stronghold in ASEAN markets
The rapid growth of Chinese consumer brands has been a key factor in China's dominance in ASEAN. According to Kantar, Chinese brands, particularly in consumer technology products and services such as Lenovo and ByteDance, now dominate the regional market, especially ASEAN-6.
Of the top 25 global brands, the majority are from China, with 7 in technology services, 13 in consumer technology and 4 in automotive, including BYD, with Huawei covering two categories.
Meanwhile, American brands remain strong, but are more reliant on legacy names like Microsoft, Apple, and Google, and are less consumer-focused than in China.
On the diplomatic front, China also stands out with more bilateral meetings than the United States, with 46 meetings in 2021 compared to 40 for the United States. China's "seen and remembered" strategy is further reinforced by the fact that new leaders from Southeast Asian countries, such as Malaysia, Thailand, and Indonesia, have more often chosen China as their first foreign visit destination.
US investment outpaces China
Although perceptions of U.S. economic influence in ASEAN lag behind those of China, data show that the U.S. has a clear advantage in terms of investment and trade. The US accounts for 20% of foreign direct investment (FDI) in ASEAN and is the top destination for 15% of the region's exports, far outstripping China, which contributes only 2% of FDI and 16% of ASEAN exports.
US investment also dominates the manufacturing and financial services sectors, with manufacturing FDI reaching $20.2 billion in 2022, compared to $5.4 billion from China. In the greenfield investment category, the US stands out in information and communications (55%) and electronics and electrical equipment (14%).
