Lux de Veritas
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The OP does not discuss annexation of SEA. Nor does it suggest colonization of any nation. The essence of the thesis of the OP is that China may form a sort of voluntary union of economic and geopolitical nature thanks to its growing scale as a center of attraction. That would, in essence, be a loose union.
For SE Asia, China would have better luck with Myanmar, Thailand, Cambodia, Laos and Singapore.