ASEAN faces AI crossroads as US and China vie for influence
Southeast Asian nations are trying to balance ties to the US-led Pax Silica and China’s WAICO while building their own AI capacity.
Global AI competition is now framed by Washington’s Pax Silica and China’s World Artificial Intelligence Cooperation Organization (WAICO), each offering contrasting models of technology governance. ASEAN, with its low data-center costs and growing manufacturing base, has historically pursued a middle path, yet recent US export controls on Anthropic models highlight Washington’s willingness to restrict access. While Singapore and the Philippines have signed onto Pax Silica, Malaysia, Indonesia and Thailand stay out, emphasizing neutrality and dual sourcing of chips.
The region’s ability to hedge depends on addressing talent gaps—Malaysia needs 50,000 engineers but graduates only 5,000 annually—and bolstering energy security, as coal- and gas-heavy grids face blackouts. Projects such as Indonesia’s 360 MW Batam AI campus and nuclear initiatives in Vietnam and Singapore illustrate ASEAN’s openness to diverse partners beyond the US and China. To turn opportunistic hedging into a strategic advantage, ASEAN members must scale domestic AI research and infrastructure.
Why it matters
ASEAN's AI strategy will shape regional tech independence and influence the global balance between US and Chinese AI ecosystems.
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