China, Japan, S.Korea, and ASEAN countries call for enhanced regional unity and cooperation

During the 28th ASEAN Plus Three Finance Ministers' and Central Bank Governors' Meeting which took place on May 4 in Milan, Italy, ASEAN members along with China, Japan, and South Korea, called for enhanced regional unity and cooperation to address heightened uncertainties, including rising protectionism and volatile global financial conditions in a joint statement issued after the meeting.

The joint statement, which did not mention the US by name, came as sweeping new US tariffs threaten to hit Southeast Asia hard, Nikkei Asia reported.

Chinese Finance Minister Lan Fo'an attended the meeting and co-chaired some sessions.

Lan emphasized that the global economy is undergoing profound adjustments, with globalization encountering headwinds and rising unilateralism and protectionism. Instability and uncertainties have notably increased. The 10+3 regional economies demonstrate strong resilience and have significant growth potential, but they also face complex and severe internal and external challenges. China is willing to work with all parties in the 10+3 framework to uphold openness and inclusivity, promote solidarity and cooperation, and continuously deepen regional financial collaboration, in order to address global instability and uncertainty with the stability and certainty of this region, Lan said.

The joint statement issued after the meeting released on ASEAN website noted that "escalating trade protectionism weighs on global trade, leading to economic fragmentation, affecting trade, investment, and capital flows across the region. Near-term prospects may also be affected by other external risks, including tighter global financial conditions, growth slowdown in major trading partners, and reduced investment flows."

Additionally, the statement also highlighted that "amid rising uncertainties and long-term structural shifts, we reaffirm our full commitment to multilateralism, and a rules-based, non-discriminatory, free, fair, open, inclusive, equitable, and transparent multilateral trading system with the World Trade Organization at its core."

In addition to sector-based tariffs, including those on automobiles, the US administration announced "reciprocal" tariffs in early April, which are set to deal a heavy blow to many export-reliant Asian economies, according to Kyodo News.

ASEAN members Cambodia and Vietnam are facing hefty US levies of 49 percent and 46 percent, respectively, although the US later announced a 90-day pause for most countries, per Kyodo News.

The US imposed tariffs of 24 percent on imports from Japan, including a baseline levy of 10 percent that remains in effect as negotiations continue.

During the gathering, the finance chiefs also agreed to update the Chiang Mai Initiative Multilateralization, which was launched in 2010, expanding its scope to cover pandemics and natural disasters.