E. O. Berzin. Southeast Asia and Western Expansion in 17th— Early 18th Centuries. At the turn of the 16th century Southeast Asia was an important world trade market. Its produce was lavishly exported almost to all countries of the Old World and to the Spanish colonies in America. Its merchants sailed west and cast reaching the Red Sea and the ports of China and Japan. In turn, the region attracted merchants from various Asian countries which strongly encouraged its economic growth and intensified centralization in its leader countries.

The initial Western thrust, by Spain and Portugal, into Southeast Asia in the 16th century did not appreciably damage its trade. Their expansion in the region met with strong opposition from Southeast Asian nations. In effect, their first colonial strongholds were isolated, which stopped their deplorable impact on the development of the region as a whole.

The 17th century colonial offensive against the region launched primarily by Holland, Britain and France was much more harmful. It ravaged altogether the region's maritime trade. The Dutch East India Company entangled all more or less significant countries of Indonesia and Malaya bv shackling agreements. The Siam, which suffered most from British and French expansion, Burma, Cambodia, and Vietnam were made de facto, if not de jure, like Japan, closed countries. Their foreign trade actually came to a hault. Their economies fell back onto subsistence level heading into a deep economic recession. Up untill the mid-20th century Southeast Asia had been lagging hopelessly behind Europe.