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The recent visit by Chinese President Xi Jinping to three Southeast Asian nations comes at a strategic moment, with mounting tariff pressures from U.S. President Donald Trump reshaping the dynamics of international trade.
“It’s a very intelligent strategy,” noted Gil Lan, an associate professor in the law and business department at the Ted Rogers School of Management at Toronto Metropolitan University.
Over the course of five days, Xi’s travels through Vietnam, Malaysia, and Cambodia aimed to strengthen alliances and present China as a dependable partner in the context of recently imposed tariffs by the U.S. Temporary levies were placed particularly high on Southeast Asian countries that Xi visited, making this tour especially pertinent.
“This provides a unique opportunity for China to emerge as a leader in the global trading system, a position facilitated by the U.S. actions,” Lan added.
It has been almost a decade since Xi last visited Cambodia and over a dozen years since he traveled to Malaysia.
In a bold move on April 2, Trump introduced tariffs of 46% on goods from Vietnam, 24% on Malaysian imports, and 49% on Cambodian products — although he later postponed the rate to 10% for 90 days. In contrast, China faces a staggering 145% tariff from the U.S.
Xi was warmly welcomed during a ceremony in Kuala Lumpur, Malaysia, highlighting the aim of his Southeast Asian trip to build partnerships and project a reliable image of Beijing.
Championing Free Trade
Upon his arrival in Hanoi, Xi was received by Vietnamese President Luong Cuong in a specially arranged ceremony. As reported by China’s Ministry of Foreign Affairs, Xi asserted the two nations would work together to “enhance strategic resolve, oppose unilateral bullying, uphold the global free trade framework, and maintain stability in global industrial and supply chains.”
Ben Bland, director of the Asia-Pacific program at Chatham House, remarked that the reception given to Xi was very high-profile, illustrating a deliberate contrast to the perceived unilateral approach of the U.S.
Joint statements from China and Vietnam emphasized their commitment to preserving a multilateral trading regime based on World Trade Organization principles, reinforcing Xi’s message of China as a reliable partner.
While in Malaysia, discussions between Xi and Prime Minister Anwar Ibrahim, who serves as chair of the Association of Southeast Asian Nations (ASEAN), were expected to center around the prospects of a free trade agreement between China and ASEAN.
Xi concluded his journey with a visit to Cambodia, where he was received by King Norodom Sihamoni amidst celebrations marking the 50th anniversary of Cambodia’s turmoil under the Khmer Rouge regime.
In discussions with Cambodian Prime Minister Hun Manet, agreements aimed at bolstering cooperation across various sectors were anticipated to be formalized.
Trump made a comment regarding Xi’s Asian tour during a meeting with El Salvador’s president, Nayib Bukele. He expressed skepticism about the motivations in play, stating, “That’s a lovely meeting. We’re meeting, like, trying to figure out, ‘How do we screw the United States of America?'”
Trade and Infrastructure Development
China’s diplomatic footprint in Southeast Asia is extensive, having been ASEAN’s largest trading partner since 2009. The trade volume between China and ASEAN reached approximately $998 billion in 2024.
Between 2010 and 2019, trade between ASEAN member states and China more than doubled, largely supported by the implementation of the ASEAN-China Trade in Goods Agreement established in 2005.
However, the recent visit by Xi is just one indication of the growing ties. According to Lan, the significant foreign direct investment from China also serves as a crucial indicator of this strengthening relationship.
As part of its Belt and Road Initiative, China has invested billions in developing infrastructure in the region, including railways in Thailand and Cambodia, and various projects in Vietnam.
“Southeast Asian nations likely aim to reassure China of their ongoing trade relationships while avoiding further antagonizing the U.S.,” Lan observed.
Navigating Economic and Territorial Challenges
Despite the apparent progress, the heightened collaboration among regional powers does not come without its complexities, both in economic interactions and geopolitical landscapes.
The Council on Foreign Relations noted an increase in China’s assertiveness over its claims in the South China Sea, particularly concerning the unexploited oil and natural gas resources there, generating tensions with neighboring countries like the Philippines.
Beijing has previously employed economic pressure tactics, such as imposing bans and strict regulations, in response to territorial disputes, notably with the Philippines over the South China Sea.
A recent incident saw a China Coast Guard vessel using force against a Philippine resupply mission in contested territories, underlining the ongoing maritime disputes in the region.
Both Canada and the U.S. have vested interests in the South China Sea and have engaged in discussions on enhancing defense cooperation, reflecting their concerns over China’s influence in the region.
Potential conflicts in these waters could disrupt an estimated $5.5 trillion in trade.
Bland emphasized that existing tensions will not dissipate quickly: “It is plausible for countries to simultaneously express caution towards both major powers while managing relations with them.”
China’s efforts to engage with other neighboring states, such as Japan and South Korea, are also indicative of its broader strategy; recent economic discussions have emerged after a five-year hiatus.
Despite the presence of ongoing disputes in the East China Sea, there is a possibility that regional dynamics may push countries to align more closely in response to U.S. unpredictability.
“This could lead to a reinforcement of Asian alliances, driven not by a turn towards Asia, but a retreat from U.S. influence,” Lan concluded.
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