Japan now has to deal with ASEAN on a more equal footing

Yet, the Chinese economy remains crucial for Japanese businesses. China is Japan's largest trading partner and was the third-largest destination for Japanese direct investment in 2022. For ASEAN, China's assertive behaviour in the South China Sea threatens the free and open, rules-based maritime order in the region. Escalating US-China strategic competition challenges ASEAN's "centrality" while the emergence of mini-lateral strategic coalitions such as the Quad and AUKUS diminish the importance of ASEAN's contributions to regional stability. At the same time, the ASEAN and Chinese economies have also become inseparably intertwined. The share of ASEAN's total trade with China grew from…