China-ASEAN Blue Economy Common Market: Pursuing Maritime Cooperation And Ocean Governance In The Evolving Global Geopolitical Landscape – Analysis

June 13, 2026 
By Rommel C. Banlaoi


Building a China–ASEAN Blue Economy Common Market is a strategic, developmental, and geopolitical endeavor, as it directly addresses issues of maritime cooperation and ocean governance in shaping the future of Asia and the wider Indo-Pacific region. The seas serve as lifelines for trade, energy, and connectivity, and their sustainable management is essential to regional prosperity. By advancing collaborative frameworks in fisheries, shipping, marine conservation, and disaster response, China and ASEAN, through the Blue Economy Common Market, can transform the ocean into a shared domain of peace and development.

The Asia-Pacific has emerged as the epicenter of global power competition. Maritime disputes, freedom of navigation, and resource exploitation underscore the urgent need for cooperative governance mechanisms. We are living in an era of strategic uncertainty shaped by a major power transition and the contest for influence across critical sea lanes. The global order is no longer unipolar as it is evolving into a multipolar, fluid, and contested system driven by the phenomenal rise of China, India, and other emerging powers.

In this shifting landscape, a Blue Economy Common Market, anchored in maritime cooperation and ocean governance, could serve as a stabilizing force, offering a vision of shared prosperity amid geopolitical flux.

Great Power Rivalry

The United States and China are now locked in a rivalry that spans trade, technology, security, and ideology. The European Union and other major powers are also asserting influence. Regional organizations like the Association of Southeast Asian Nations (ASEAN) are striving to maintain centrality amidst many regional security challenges in both traditional and non-traditional fields.

Economically, global growth is slowing as a consequence of US-Iran War. Supply chains are being restructured because of various regional trade arrangements like the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the China-ASEAN Free Trade Area (CAFTA). Technological bifurcation is accelerating due to US-China major power competition. The COVID-19 pandemic already exposed global vulnerabilities in logistics. Now, climate change and energy transitions are reshaping industries worldwide.

Maritime cooperation and ocean governance in Southeast Asia through the Blue Economy Common Market present both urgent risks and transformative opportunities. Fragmentation and great power competition threaten to destabilize the region, while environmental pressures such as overfishing and climate change compound these challenges. These overlapping risks underscore the need for collective action and highlight the vulnerability of Southeast Asia’s maritime domain to both geopolitical and ecological stressors.

Yet ASEAN’s centrality offers a way to stability, enabling the bloc to act as a convenor that promotes dialogue, integration, and sustainable development. Through initiatives like the Blue Economy Common Market, ASEAN can transform contested maritime spaces into cooperative zones, harmonizing regulations, fostering joint research, and advancing ocean industries. In doing so, ASEAN, in collaboration with China, strengthens resilience, protects ecosystems, and positions itself as a global leader in ocean governance.

Impacts of the Blue Economy Common Market

The China–ASEAN Blue Economy Common Market represents a transformative vision for maritime cooperation, where nations treat ocean resources as shared endowments requiring protection and sustainable use. By integrating industries such as fisheries, shipping, tourism, and renewable energy, the initiative seeks to diversify regional economies beyond traditional manufacturing. This diversification not only strengthens resilience but also fosters innovation in marine biotechnology, aquaculture, and green shipping technologies.

The Common Market’s emphasis on supply chain stability is important. By encouraging joint investment in ports, shipping networks, and digital maritime infrastructure, the framework builds shared capacity to withstand future shocks. Whether disruptions arise from geopolitical tensions or global crises, coordinated maritime connectivity ensures smoother trade flows and greater resilience. This collective approach transforms vulnerabilities into opportunities for stronger regional integration.

Finally, the initiative advances a deeper sense of interdependence between China and ASEAN, reinforcing a vision of a shared future in the Indo-Pacific. By incorporating cooperation into ocean governance and economic development, the Common Market strengthens trust, reduces conflict potential, and promotes collective security. In doing so, it positions maritime cooperation not merely as an economic strategy but as a cornerstone of sustainable development and long-term regional stability.

Challenges Ahead

However, the journey forward is full of challenges because of several interrelated factors.

Geopolitical rivalries, particularly the intensifying U.S.–China competition, may cast the Common Market as a strategic alignment, which in turn could invite counterbalancing measures from other global powers. Economic uncertainties also loom large, as inflation, energy transitions, and technological decoupling threaten to disrupt maritime industries and undermine stability. Environmental pressures add another layer of complexity, with climate change and ecological degradation posing significant risks to sustainability and long-term resilience. Finally, institutional limits within ASEAN’s consensus-driven model may slow progress, while differing national interests could complicate efforts at harmonization and collective action.

These challenges underscore the strong need for strategic foresight, institutional innovation, and confidence‑building measures among participating economies.

The Philippines as a Bridge

In this context, the Philippines occupies a unique geopolitical position. As a treaty ally of the United States and a close neighbor of China, the Philippines can serve as an important bridge in U.S.–China great power relations. This bridging role is crucial to creating a conducive geopolitical environment for the success of the China‑ASEAN Blue Economy Common Market.

The Philippines can also advance ASEAN’s centrality by syncing maritime cooperation and ocean governance into its regional strategy, ensuring it is not forced into difficult choices between major powers. This means initiating trilateral dialogues with China and the United States on maritime security and economic cooperation, while also promoting joint blue economy projects such as sustainable fisheries management, renewable energy ventures, and marine biodiversity protection. These initiatives would highlight the Philippines’ role as a bridge-builder, reduce tensions, and demonstrate leadership in balancing ecological sustainability with economic growth.

At the same time, Manila can pursue confidencebuilding measures in the South China Sea, including cooperative marine environmental protection, disaster response coordination, and joint scientific research. By leveraging ASEAN platforms, the Philippines can institutionalize U.S.–China engagement in ways that support regional stability and economic integration.

Alignment with the Code of Conduct

It is very important to align the China‑ASEAN Blue Economy Common Market with the ongoing negotiation and eventual conclusion of the Code of Conduct (COC) in the South China Sea. The COC serves as a confidence‑building mechanism that can provide the normative foundation for cooperative maritime development.

By synchronizing the Blue Economy initiative with the COC, China and ASEAN can ensure that economic integration is underpinned by rules‑based order, maritime stability, and peaceful dispute management. This alignment will strengthen trust, reduce tensions, and create a secure environment for sustainable economic growth in the region. In this way, the Blue Economy becomes not just an economic vision, but a regional peace‑building strategy.
Key Tasks and Measures

To advance under these conditions, several interconnected tasks are paramount.

First, an institutional framework must be established through the creation of a ChinaASEAN Blue Economy Council. This body would serve as the central mechanism for coordinating policies, setting standards, and resolving disputes, ensuring that cooperation remains structured and effective.

Another important measure is infrastructure connectivity, which involves developing smart ports, green shipping corridors, and digital maritime platforms. These innovations would enhance efficiency, reduce environmental impact, and strengthen regional trade links.

A strong emphasis on sustainability is also essential. This means committing to marine conservation, investing in renewable energy, and pursuing carbon reduction strategies to safeguard ecosystems while supporting long-term economic growth.

To make these ambitions feasible, financial support must be secured. A dedicated Blue Economy Fund could provide resources for small and medium enterprises, foster innovation, and build capacity across the region.

Finally, peopletopeople linkages are vital. Promoting academic exchanges, maritime education, and joint research initiatives would deepen mutual understanding and cultivate the expertise needed to sustain the blue economy for future generations.

Transforming the vision of a China–ASEAN Blue Economy Common Market into reality requires integrating maritime cooperation and ocean governance, while carefully navigating the region’s geopolitical complexities, particularly in the context of the Hainan Free Trade Port.

The Role of Hainan Free Trade Port

Hainan Free Trade Port is strategically positioned at the heart of the South China Sea, serving as a vital gateway to ASEAN. Its location along one of the busiest maritime routes in the world allows it to facilitate shipping, logistics, and cultural exchange, while also playing a role in regional maritime security. This geographic advantage makes Hainan a natural hub for advancing connectivity and cooperation between China and Southeast Asia.

Policy innovations further strengthen Hainan’s role. With preferential tariffs, streamlined customs, and liberalized investment regimes, the port offers a business-friendly environment that attracts global investors and fosters cross-border trade. These measures not only reduce barriers but also create a platform for testing new governance frameworks that can later be scaled across the region.

Economically, Hainan is diversifying into marine biotechnology, ocean tourism, and renewable energy, positioning itself as both an innovation laboratory and a demonstration site for China-ASEAN maritime connectivity. By showcasing sustainable practices and cooperative governance, Hainan can act as a bridge of cooperation, setting standards for ocean governance and maritime collaboration that benefit the wider Asia-Pacific region.

Conclusion

The ChinaASEAN Blue Economy Common Market represents far more than a conventional trade framework. It is also a bold geopolitical vision designed to anchor resilience, sustainability, and integration across Asia’s maritime sphere. By weaving together economic cooperation with ocean governance, it seeks to transform the IndoPacific into a zone defined not by rivalry but by collaboration. Its urgent mission is to craft a maritime future that is cooperative, sustainable, and inclusive, one where shared prosperity flows from the responsible stewardship of oceans and seas.

Updated and revised version of a Plenary Speech delivered at the China-ASEAN Blue Economy Cooperation Dialogue: Building a Strategic Hub for the China-ASEAN Blue Economy Big Common Market — The Strategic Task of “Creating a New Maritime Hainan” hosted by Hainan Institute for Free Trade Port Studies, China Oceanic Development Foundation, and China Foreign Affairs University with the support of China Institute for Reform and Development (CIRD) and co-organized by Hainan Reform and Development Research Foundation and Huayang Center for Maritime Cooperation and Ocean Governance held in Haikou, Hanan, China on 10 May 2026.


About Rommel C. Banlaoi
Rommel C. Banlaoi, PhD is the Chairman of the Philippine Institute for Peace, Violence and Terrorism Research (PIPVTR) and President of the Philippine Society for International Security Studies (PSISS). He is currently a Non-Resident Fellow of the Huayang Center for Maritime Cooperation and Ocean Governance and member of the Board of Directors of China Southeast Research Center on the South China Sea (CSARC) and Director of Philippines-China Studies Center. He served as the President of the Philippine Association for Chinese Studies (PACS) and member of the Management Board of the World Association for Chinese Studies (WACS).

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