Southeast Asia needn't take sides in US-China tech rivalry. It can learn from both, experts say

As the competition between the United States and China intensifies in the realm of artificial intelligence, experts gathered at CNBC's East Tech West 2025 conference in Bangkok emphasized that Southeast Asia should leverage the strengths of both nations while developing its own technological capabilities. Julian Gorman, head of Asia-Pacific at the mobile network trade organization GSMA, cautioned against forcing Southeast Asia to take sides in the rivalry. He highlighted the region's significant reliance on both economies, stating, "It's very hard to consider that they would go one way or the other." He stressed the importance of avoiding fragmentation in technology and promoting standards that transcend geopolitical divides, ultimately benefiting society at large. The expansion of U.S. and Chinese AI companies into global markets has become increasingly pronounced as both nations vie for greater influence in advanced technologies. George Chen, managing director and co-chair of digital practice for The Asia Group, noted that Southeast Asia initially favored American AI models from companies like Google and Microsoft. However, the rise of China's DeepSeek has shifted the landscape, offering cost-effective and open-source models that can be tailored to regional needs. Open-source software, which allows users to modify and share source code freely, has been identified as a crucial resource for regions outside the U.S. and China to develop their own AI capabilities. Meanwhile, the U.S. continues to dominate the AI hardware sector, particularly through chip manufacturer Nvidia. Although the U.S. has restricted China's access to these chips, they remain available to Southeast Asia—a market opportunity Chen urges the region to exploit. However, he warned that the AI landscape could undergo significant transformations in the coming decade, with China potentially providing more affordable alternatives to Nvidia's offerings. "Don't take a side easily and too quickly. Think about how to maximize your economic potential," Chen advised. Gorman highlighted that navigating this delicate balance between superpowers is not unfamiliar to Southeast Asia. The region's mobility sector heavily relies on Chinese tech for manufacturing while turning to the U.S. for telecommunications needs. While the U.S. and China lead in advanced AI model development, Southeast Asia possesses unique advantages in the global AI arena. Chen emphasized the need to apply AI technology to tangible products and services, underpinning the region's strong app ecosystem and youthful demographics as vital assets for development. Malaysia's emergence as a global leader in AI data centers and computing, particularly in Johor, showcases the potential for growth driven by cost-effectiveness. To further strengthen its position, Southeast Asia must attract companies with advanced manufacturing capabilities, mirroring China's strategy to advance in technology. Gorman suggested that the region could serve as a neutral platform for high-level discussions between the U.S. and China on responsible AI application. In addition, Southeast Asia has the opportunity to take a proactive stance in AI regulation, as evidenced by Singapore's Shared Responsibility Framework aimed at combatting international scams. With few global regulations in place for AI—despite the EU's policy—Chen asserted that Southeast Asian nations must unite to establish common frameworks for a more influential role in global AI development and governance.