Europe Eyes Southeast Asia Amid Shifting Global Alliances

As the U.S. and China navigate complex trade dynamics, European nations are exploring stronger relationships with Southeast Asia. This push comes as geopolitical tensions rise in the region, potentially reshaping long-standing partnerships.

Europe Seeks New Trade and Security Ties

European leaders are intensifying their focus on Southeast Asia, particularly due to Washington’s aggressive trade policies. However, experts caution that established trade connections pose a challenge to the EU’s objectives, as stated by several sources. China’s growing presence in the South China Sea, illustrated by its military activities, further complicates the situation.

Emmanuel Macron, the French President, highlighted the necessity of bolstering ties between Europe and the Indo-Pacific during the 2025 Shangri-La Dialogue. He also emphasized a common challenge faced by both blocs, including the potential weakening of traditional alliances.

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“Relationships are built on economic ties in Southeast Asia, more than anything else.”

—Bob Herrera-Lim, Managing Director at Teneo

In 2024, China was Southeast Asia’s primary trade partner, with $982.3 billion in trade. The U.S. followed, with $476.8 billion in trade, while the EU trailed with approximately 258.7 billion euros ($299.7 billion) in trade over the same period (Statista, 2025).

Obstacles and Opportunities

Historical difficulties, such as geographical distance and political differences, have hindered the growth of Southeast Asian and European relationships. While the EU has trade agreements with Singapore and Vietnam, broad trade deals with ASEAN have stalled.

Céline Pajon, Head of Japan and Indo-Pacific Research at Ifri’s Center for Asian Studies, noted that greater engagement would let Southeast Asia diversify its strategic partnerships. Additionally, the EU could provide a way to resist the pressures of dominance.

Lizza Bomassi, a Research Analyst at the European Union Institute for Security Studies (EUISS), believes that Europe presents itself as a trustworthy partner in sectors like green infrastructure and digital governance. Strengthening ties may boost diplomatic and reputational costs for China, especially concerning territorial disputes.