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China’s strategic push — Asia ties amid tariff tensions

Context

  • Beijing’s growing engagement with Southeast Asia could complicate U.S. efforts to build a coalition aimed at economically isolating or deterring China.

Introduction

  • Xi Jinping toured Vietnam, Malaysia, and Cambodia (April 14-18, 2025) to position China as a trusted partner amid U.S. tariffs and trade pressures.
  • Following significant tariffs imposed during the Trump era, China is pivoting towards strengthening ties with key Southeast Asian countries.
  • The visit aligns with China’s strategy to reduce external economic pressures, maintain regional stability, and affirm China’s leadership in the Indo-Pacific.

China’s Strategy: Southeast Asia as Buffer and Bridge

  • China seeks to shield itself from escalating U.S. trade restrictions, including tariffs, export controls, tech bans, and financial decoupling.
  • Southeast Asia offers alternative trade routes, manufacturing options, and diplomatic allies to counteract U.S. containment strategies.

Tariff Impact & China’s Response by Country

CountryTariff Impact (Trump era)China’s Response
CambodiaUp to 59% (10% + 49%)Largest investor and trade partner; supports business & multilateralism
Vietnam46%Signed 45 cooperation agreements focusing on economy and diplomacy
Malaysia24%Over 30 agreements on digital economy, AI, agriculture, infrastructure

Highlights of Xi’s Visits and Agreements

  • Vietnam: 45 cooperation agreements signed strengthening economic and diplomatic ties.
  • Malaysia: 30+ agreements focusing on technology, agriculture, and infrastructure.
  • Cambodia: First visit since 2016; China reaffirmed its status as biggest investor, with trade exceeding $15 billion in 2024.
  • Example: Funan Techo Canal project demonstrates China’s ongoing economic commitments while the U.S. leans towards protectionism.

Projecting a Contrast: China vs U.S.

  • Ideology & Norms: China promotes non-interference and economic engagement versus U.S. interventionism and ideological rigidity.
  • Regional Resonance: Strong appeal in Cambodia (close political ally); moderate influence in Malaysia (balancing foreign policies).
  • Soft Power: Xi promotes South China Sea code of conduct, Belt and Road infrastructure, cultural ties as an alternative regional leadership model.
  • Timing: China offers steady engagement with tangible outcomes, contrasting U.S.’s episodic, reactive approach.
  • U.S. Indo-Pacific Strategy: Seen as security-centered and anti-China; China focuses on economic diplomacy.
  • Intra-ASEAN Dynamics: Xi strengthens ties with Vietnam (reassurance on South China Sea) and Malaysia (peaceful dispute resolution, BRI projects).

Economic Diplomacy: U.S. vs China

  • U.S. emphasizes security alliances (AUKUS, Quad), but China centers on investment and trade deals.
  • U.S.’s Indo-Pacific Economic Framework criticized for limited market access compared to China’s active offers.

The Bigger Picture

  • China’s role as an indispensable economic partner risks undermining U.S. attempts to economically isolate it.
  • Growing economic interdependence between Southeast Asia and China challenges Washington’s ability to counter China effectively.
  • Xi’s tour is a strategic move to cement Chinese influence during a time of global geopolitical shifts.
  • This diplomatic push shapes regional alliances, economic integration, and governance norms for the long term.

Conclusion

  • The tour bolsters Xi’s domestic political standing, signaling China’s resilience amid Western pressure.
  • Warm receptions, economic deals, and strategic talks strengthen Xi’s authority and counter negative narratives about China’s economy and diplomacy.
  • It reassures Southeast Asia and the Global South of China’s reliability, though regional responses to Beijing’s outreach remain uncertain.

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