ASEAN urged to resist US-China AI allegiance

ASEAN sits between two competing AI orders: the U.S.-led Pax Silica and China's WAICO, launched in Shanghai in July 2026 with 29 founding members. Washington initially said it wouldn't stop members from working with China, but the draft letter suggests that patience is wearing thin. The U.S. can already limit access to its own AI models, as shown by the June emergency order against Anthropic that was later lifted.

The region's position has real foundations. Data center operating costs are below the global average, and Chinese AI models are considerably cheaper due to more efficient designs. Malaysia's semiconductor sector is deeply integrated into global supply chains. Indonesia is building a 360 MW Batam campus that will run 170,000 Nvidia accelerators from Q1 2027. This dual engagement is practical, not just diplomatic.

Energy remains a serious constraint. Coal and gas supply roughly 70% of generation across the top six ASEAN data center markets. Five ASEAN states are now pursuing nuclear energy, including Vietnam's agreement with Rosatom for two reactors. Talent is another bottleneck: Malaysia needs 50,000 engineers but produces only 5,000 graduates per year. The authors argue that hedging must be backed by real domestic capability building to be substantive rather than opportunistic.