- Many Southeast Asian states receive investment from the US and also trade in American services, which enables them to produce items they sell to China
- Disruption to this system could hurt Southeast Asia at a time when the region is grappling with inflation and economic contractions, an analyst said
Southeast Asian countries are wary that the US-China fallout over the spy balloon saga could inject instability in the region at a time it faces inflation and economic slowdown, analysts said, as distrust widens between the world’s two largest economies.
The US military on Saturday shot down what it said was a Chinese surveillance balloon that last week crossed into North American airspace, including over sensitive military sites. China insisted it was an accident involving a civilian aircraft and threatened repercussions for Washington’s “overreaction”.