Southeast Asia is emerging as a key arena in the intensifying competition between the United States and China over artificial intelligence (AI) technologies, with both powers actively seeking to draw regional countries into their respective AI coalitions.
In recent months, officials from Washington and Beijing have increased diplomatic outreach to the Association of Southeast Asian Nations (ASEAN) members, encouraging them to join either the US-led Pax Silica bloc or China’s newly formed World Artificial Intelligence Cooperation Organisation (Waico). This push comes amid broader geopolitical tensions and concerns over technology supply chains.
Waico, established last month during the World Artificial Intelligence Conference in Shanghai, launched with 29 founding members primarily from the Global South. Chinese President Xi Jinping highlighted the organization as an effort to unite developing countries around inclusive AI development and governance. Five Southeast Asian nations—Cambodia, Indonesia, Laos, Malaysia, and Myanmar—have joined Waico, attracted by what Chinese officials describe as its open and inclusive framework, along with promises of exclusive privileges for founding members.
On the other side, the US has sought to consolidate a China-free AI supply chain through Pax Silica, which currently includes 24 members, among them only two Southeast Asian countries: Singapore and the Philippines. The US-led initiative is widely viewed as an attempt to secure critical technology networks and limit China’s influence in emerging AI sectors.
Sources familiar with the matter, speaking on condition of anonymity, reported that both powers have pressed ASEAN governments at high levels. US officials have inquired about countries’ intentions regarding Waico membership, reportedly signaling disapproval of engagement with the Chinese-led body and participation in the Shanghai event. According to a recent report, Washington has warned a dozen countries that joining China’s AI framework could exclude them from Pax Silica, effectively forcing a choice between the two camps.
Jeremy Chan, senior analyst at Eurasia Group, described Southeast Asia as a central battleground for US-China AI rivalry. He noted that while ASEAN states have traditionally sought to maintain neutrality by hedging between major powers, their ability to do so may be narrowing. Chan highlighted China’s appeal to developing economies through its open-source AI approach and the lower costs it offers, which may continue to resonate despite US pressure.
Beijing has rejected accusations of coercion. Foreign ministry spokesman Lin Jian emphasized that nations have the sovereign right to choose partners based on their own development needs and opposed the formation of divisive blocs or forced alignments in AI cooperation.
Experts also observe that public pressure from both US and China is more overt than in the past. Dylan Loh, associate professor at Singapore’s Nanyang Technological University, said that while Southeast Asian countries prefer multi-alignment strategies to balance relations with major powers, the framing of AI cooperation in bloc terms complicates their policy options and increases risks of displeasing one side.
As AI becomes a critical domain of strategic competition, Southeast Asian countries face growing challenges in navigating the emerging geopolitical fault lines while pursuing their own technological and economic interests.