LettersIn US-China AI race, Southeast Asia is no side act
Readers discuss Southeast Asia’s role in the artificial intelligence economy, and patients’ access to Chinese medicine in public hospitals and elderly homes
The intensifying technological rivalry between the United States and China is often framed as a race over semiconductors, artificial intelligence (AI) models and advanced computing power. Much of this conversation treats Southeast Asia as a peripheral actor – a consumer market rather than a strategic arena. That assumption is increasingly outdated.
Major technology companies are already positioning themselves accordingly. Firms such as Microsoft and Google have poured billions of dollars into cloud and data centre infrastructure across the region, and Alibaba is investing heavily too. What appears on the surface as commercial expansion also carries geopolitical significance. Control over digital infrastructure increasingly shapes influence in the emerging AI economy.
Unlike semiconductor manufacturing, which remains largely geographically concentrated, AI infrastructure can be distributed across multiple locations. This makes Southeast Asia strategically valuable. For competing technological powers, the region offers both a vast market and an alternative platform for computing capacity outside their own borders.
For governments in Southeast Asia, this transformation brings opportunity as well as vulnerability. Large inflows of investment promise economic growth, new jobs and accelerated digital transformation. At the same time, heavy reliance on external platforms raises familiar concerns about technological dependence and regulatory sovereignty.