Nikkei News: Asian Free Trade Area Does Not Need the U.S., Chairman of CP Group Advocates Regional Self-Reliance

Nikkei News reported on July 5 that Thanin Charavanon, Senior Chairman of the Thai CP Group, made a powerful call in today's interview: In the face of the trade protectionism escalation under the Trump administration, Asian countries should deepen the free trade system excluding the United States and restructure the global economic order.

He pointed out that the Asian economy accounts for nearly half of the world's GDP, reaching 48.6% in purchasing power parity, with an expected growth rate of 4.5% this year, far exceeding the global average. However, the "Liberation Day" tariff policy introduced by Trump's second term has imposed punitive tariffs on more than 180 countries, with China's goods facing a tax rate as high as 145%. Even after being ruled by the U.S. International Trade Court as overstepping its authority, it continues to appeal, forcing Asia to rethink its path forward.

"When the U.S. wields tariff sticks to trample multilateral rules, Asia cannot wait for a savior," Thanin said directly. The CP Group he leads is **the largest comprehensive conglomerate in Southeast Asia, with annual revenue exceeding $82 billion, operating in 21 countries. Its judgment reflects the collective anxiety of regional business leaders. The Trump tariffs have triggered a chain reaction: tech giants like Apple and Cisco have been forced to move production out of China, with Cisco's output in China dropping by 80%, and retailer Target has reduced its Chinese procurement ratio from 30% to 25%. But crisis also brings new opportunities. The Regional Comprehensive Economic Partnership (RCEP) has shown significant results, with regional trade volume increasing by 3% against the trend in 2024, China's service trade scale breaking through $1 trillion, and e-commerce transaction volumes in Southeast Asia surging by 15% to $263 billion. "The resilience of Asian supply chains exceeds expectations," Thanin emphasized, citing a Boao Forum report, "41.7% of global intermediate goods trade depends on Asia, and China maintains leadership in 20 of 22 key products, which is the real anchor."

The CP Group is making capital investments to position itself for a post-American era. This family, together with LDA Capital, has launched a $2 billion Asia Growth Fund, focusing on pre-IPO high-growth companies; and during the Chinese dynamic zero-COVID period in 2022, the group had already anticipated the opportunity of opening up, urging Thai exporters to prepare for the recovery of the Chinese market.

"A historical turning point has arrived," Thanin concluded, "when the cost of North American supply chains has surged due to 25% steel and aluminum tariffs, Asia needs a new framework—a free trade alliance that does not require the approval of the White House." At this moment, international bond market yields are fluctuating upward, and global capital is voting with its feet.

Original: https://www.toutiao.com/article/1836802877863945/

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