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"The Secretary-General of ASEAN Dr. Kao Kim Hourn, emphasised that the bloc should maintain neutral and rule-based relationships, prioritising cooperation as a survival strategy amid escalating US-China rivalry. "The US and China are our comprehensive strategic partners now. And we've been working with both major powers, the US already in the past 49 years, China in the past 35 years," he stated in an interview on the sidelines of Shangri-La Dialogue 2026 in Singapore on Sunday. "We have to respond strategically to what's being said, the message conveyed in the world context, particularly in the relations that we've been working with," Dr. Kao continued, describing the block as "strong believers in open, rule-based multilateralism." To offset global tariff pressures and diversify its trade network beyond its record 1.3 trillion dollars in bilateral trade with China, the 11-member bloc is actively upgrading its internal single market, concluding a Free Trade Agreement (FTA) with Canada, and conducting a region-to-region FTA feasibility study with the Gulf Cooperation Council (GCC). "Regional cooperation is a matter of our strategic interests. As a matter of not just survival but how to thrive in this increasingly fragmented, divided world," Dr. Kao commented. On regional security, Dr. Kao stressed the importance of successful finalisation by the end of 2026 of the long-awaited South China Sea Code of Conduct (COC), an ASEAN-China regional framework aimed at management of maritime disputes and prevention of military escalations in the contested waterway. According to the ACEAN chief, keeping the critical commercial corridor 'open' and 'conflict-free' is a vital economic necessity for all parties involved. "No one, in my view, wants a conflict in the South China Sea. Period. I think all of us have the role and responsibility to make sure that the conflict does not take place," he noted. "Because we have a lot of trade [in the South China Sea]." Widely recognised as Asia's premier defence and security summit, this year's IISS Shangri-La Dialogue comes at a critical geopolitical juncture, bringing together government figures, military chiefs and security experts to discuss a range of security issues in the Indo-Pacific. The summit takes place in Singapore on May 29–31."
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