According to International Monetary  Fund (IMF) data, if ASEAN countries were a single nation, their collective  2014 GDP would represent the seventh largest economy in the world. Goals for Southeast Asia

In late 2011, the President announced that the United States would  rebalance its worldwide engagement to include a greater focus on the  Asia-Pacific region. China Has Surpassed the United States in Trade in Goods with ASEAN Countries and Trades a Similar Amount of Services, but U.S. Investment Exceeds China’s

Chinese trade in goods with ASEAN countries has grown rapidly since  2001, surpassing U.S. trade in goods since 2007. China’s Total Trade in Goods with ASEAN Countries Surpassed the United States’ in 2007, but Neither Predominates in the Region

Chinese trade in goods with ASEAN countries has surpassed U.S. trade  in goods and has grown as a share of China’s total trade in goods, while  U.S. trade in goods with ASEAN countries has declined as a share of  total U.S. trade in goods. Chinese Goods Trade with ASEAN Countries Has Grown More Rapidly Than U.S. Goods Trade

In 2014, China’s total goods trade with ASEAN countries was more than  double that of the United States: $480 billion for China and $220 billion for  the United States. However,  available data show that from 2007 through 2012, U.S. FDI flows to  ASEAN countries totaled about $96 billion, exceeding China’s reported  FDI of about $23 billion. The United States and China Engage with ASEAN Countries through Trade Agreements, Support for Firms, and Support for Regional Integration

To further economic engagement with ASEAN countries, the United  States and China each have entered into existing trade agreements and  are parties to ongoing negotiations. China supports regional economic  development and integration through capacity building and has provided  billions of dollars for infrastructure development. The United States and China Have Existing and Proposed FTAs with ASEAN Countries

The United States has an FTA with Singapore, while China has free trade  and investment agreements with all 10 ASEAN countries as well as a  separate FTA with Singapore. China is party to the  Regional Comprehensive Economic Partnership negotiations, which  include all ASEAN countries. Unlike the U.S.-Singapore FTA, China’s FTAs with ASEAN and  Singapore do not address issues such as protection of intellectual  property rights and labor rights. The United States Has Provided More Than $6 Billion in Financing for Exports to, and Investments in, ASEAN Countries since Fiscal Year 2009

According to our analysis of U.S. agency data, from fiscal years 2009  through 2014, the United States provided more than $6 billion in financing  to support U.S. exports to, and investment in, ASEAN countries (see table  5). No data are publicly available on  China Ex-Im financing for specific countries in Southeast Asia. China has promised billions of dollars for infrastructure investment  through new funds and multilateral institutions, such as the Asian  Infrastructure Investment Bank. Agency Comments

We are not making recommendations in this report. Our objectives were to  examine (1) what available data indicate about U.S. and Chinese trade  and investment with the Association of Southeast Asia Nations (ASEAN)  countries and (2) what actions the U.S. and Chinese governments have  taken to further economic engagement with these countries. We also interviewed U.S. officials in Indonesia and  Vietnam, officials from private sector business associations, and  experts from think tanks.
Why GAO Did This Study

Both the United States and China seek to deepen their economic engagement with the 10 ASEAN members: Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. ASEAN countries are seeking to further integrate their economies and create an economic community by the end of 2015. According to International Monetary Fund data, if ASEAN countries were a single nation, their collective 2014 GDP would represent the seventh largest economy in the world. In 2011, the President announced a renewed focus—known as the rebalance—on the Asia-Pacific region. The U.S. Department of State and U.S. Agency for International Development prepared a 5-year strategy for the rebalance.
GAO was asked to examine the United States' and China's economic engagement in the region. This report examines (1) what available data indicate about U.S. and Chinese trade and investment with ASEAN countries and (2) what actions the U.S. and Chinese governments have taken to further economic engagement with these countries. GAO analyzed publicly available economic data and Chinese government documents and reviewed documentation from 10 U.S. agencies. GAO also interviewed U.S. officials and private sector representatives.
Technical comments on a draft of this report from several agencies were incorporated by GAO where appropriate. GAO is not making any recommendations in this report.

What GAO Found

China has surpassed the United States in goods trade with Association of Southeast Asian Nations (ASEAN) countries and trades a similar amount of services, but U.S. investment exceeds reported Chinese investment. China surpassed the United States in goods trade with ASEAN countries in 2007. In 2014, China's total goods trade of $480 billion was more than twice the U.S. total goods trade of $220 billion. Although China is their largest outside trading partner, ASEAN countries trade more with each other. Limited available data indicate that in 2011, the United States and China each traded about $37 billion in services with ASEAN countries. From 2007 through 2012, U.S. foreign direct investment flows to ASEAN countries of $96 billion exceeded China's reported $23 billion.
The United States and China are furthering economic engagement with ASEAN countries in several ways.
Trade agreements. The United States has a free trade agreement (FTA) with one ASEAN country, Singapore, while China has an FTA with all 10 ASEAN countries. The United States and China are each party to separate regional trade agreement negotiations—the United States through the Trans-Pacific Partnership and China through the Regional Comprehensive Economic Partnership. China's existing FTAs do not address aspects of trade addressed in the U.S.-Singapore FTA, such as intellectual property, the environment, and labor rights.
Support for firms. From 2009 through 2014, U.S. agencies provided approximately $6 billion in financing for U.S. firms in ASEAN countries. China reports billions of dollars more in financing than the United States worldwide, but data on China's financing in Southeast Asia are unavailable.
Support for regional integration. In fiscal years 2009 through 2013, U.S. agencies provided $536 million in trade capacity building assistance to ASEAN countries. China has promised tens of billions of dollars for infrastructure development through new funds and multilateral institutions like the Asian Infrastructure Investment Bank, expected to begin operations in 2015.