Australia recognizes Southeast Asia as vital for its economic security and future prosperity, aiming for stronger economic integration within the Asia Pacific region.

In light of global changes and heightened security concerns regarding economic exchanges, both Australia and Southeast Asia are reassessing their strategies for economic integration.

Current cooperation between Australia and Southeast Asia spans various sectors, including agriculture, critical minerals, and energy transition, reflecting a mutual commitment to free trade and the liberal international order.

Geopolitical competition and pandemic-driven supply chain disruptions have intensified the focus on supply chain security, particularly for critical products like semiconductors.

Southeast Asia views economic security through a lens of 'comprehensive security', linking economic stability to the legitimacy of ruling regimes and the overall resilience of the region.

While both Australia and Southeast Asia value free trade, their perspectives on China's economic role differ, with Australia expressing caution due to vulnerabilities in supply chains and potential economic coercion.

In response to economic security concerns, Australia has enacted measures such as a Foreign Investment Reform Bill and established an Office of Supply Chain Resilience.

Australia's approach to economic security is characterized by flexibility and moderate policies, contrasting with the more rigid interventions often seen in U.S. trade policy.

Australia is encouraged to assist Southeast Asian nations in building capacity for critical minerals and energy transitions, promoting sustainable practices while mitigating negative impacts.

Southeast Asia is increasingly concerned about trade deficits with China, which surged from $44.8 billion in 2013 to $140.5 billion in 2023, indicating a growing reliance on Chinese markets.

Policymakers in Southeast Asia are cautious of China's economic influence, striving for greater autonomy while navigating diverse national capacities and political landscapes.

Future trade policies from the U.S., particularly under potential changes in leadership, will likely impact Southeast Asia's economic strategies, necessitating a heightened awareness of geopolitical risks in relations with China.