Panelists at CNBC’s East Tech West 2025 conference in Bangkok, Thailand, highlighted the need for Southeast Asia to develop its own AI technologies while using advancements from both the US and China.

The conference, held on June 27, highlighted the region’s strategic position amid ongoing competition between the two superpowers.

Julian Gorman, head of Asia-Pacific at GSMA, pointed out the importance of avoiding polarization. He noted, “Southeast Asia is very dependent on both economies, both China and America.”

George Chen, managing director at The Asia Group, said that US companies like Google and Microsoft initially led the AI sector in Southeast Asia.

However, China’s DeepSeek has gained popularity due to its open-source licensing and cost-effective models, which allow for regional customization.

Panelists also noted Southeast Asia’s strengths in the AI sector, such as a young population, a robust app ecosystem, and relatively low R&D costs. Malaysia, for example, has become a hub for AI data centers, particularly in Johor.

Panelists urged ASEAN countries to adopt unified frameworks to strengthen their influence in global AI policy discussions.

While the US and China lead in advanced AI models, panelists stressed that Southeast Asia should focus on applying AI to practical services.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ ASEAN’s historical balancing act offers valuable lessons for AI strategy

Southeast Asian nations have deep experience navigating great power competition, having spent decades employing sophisticated balancing strategies to maintain autonomy.

This experience is particularly relevant now as regional economies develop AI strategies, with data showing most ASEAN nations are intentionally diversifying their technology partnerships rather than aligning exclusively with either superpower 1.

Vietnam offers a concrete example of successfully leveraging US-China competition, attracting investments from companies like Apple and Samsung seeking to diversify their operations beyond China, a strategy that has boosted its manufacturing sector 2.

The region’s historical resilience in maintaining economic ties with competing powers is evident in its current technology ecosystem, where Chinese manufacturing dominates hardware while American companies often provide software and services 1.

This multi-vector approach demonstrates why Southeast Asian nations are well-positioned to navigate the current AI competitive landscape, with their experience in maximizing economic benefits while preserving strategic autonomy.