- Chinese President Xi Jinping began a diplomatic tour of Southeast Asia, visiting Vietnam, Malaysia, and Cambodia.
- Xi emphasized multilateral trade and cooperation, contrasting U.S. President Donald Trump’s tariff policies.
- Vietnam-China trade surged 14.6% year-on-year in 2024, despite territorial disputes in the South China Sea.
- Xi’s visit aims to strengthen alliances and mitigate the impact of U.S. tariffs on Chinese exports.
- Vietnam balances strong ties with both China and the U.S., benefiting from supply chain shifts.
Xi Jinping’s Southeast Asia Tour: A Strategic Move Amid Trade Tensions
Chinese President Xi Jinping has embarked on a high-stakes diplomatic tour of Southeast Asia, visiting Vietnam, Malaysia, and Cambodia. The trip, which began on Monday, comes at a critical juncture as the global economy grapples with the repercussions of U.S.-China tariff tensions. Xi’s agenda focuses on strengthening regional alliances, promoting multilateral trade, and positioning China as a stable partner in contrast to U.S. policies under President Donald Trump.
Xi’s Message: No Winners in a Trade War
In an editorial jointly published in Vietnamese and Chinese state media, Xi reiterated his stance against protectionism, stating, “There are no winners in a trade war, or a tariff war. Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and an open and cooperative international environment.” This message underscores China’s commitment to global trade and its efforts to counter the economic disruptions caused by U.S. tariffs.
A Warm Welcome in Vietnam
Xi was greeted with high honors upon his arrival in Hanoi, Vietnam. President Luong Cuong welcomed him on the tarmac, a gesture rarely extended to visiting leaders. The reception included performances by a drum art group and displays of Chinese and Communist Party flags. Xi’s visit marks his third trip to Vietnam since assuming office in 2013, signaling the importance of Vietnam in China’s regional strategy.
Vietnam’s Balancing Act
Vietnam has adeptly managed its relationships with both China and the United States. While it shares a communist, one-party system with China, Vietnam has also cultivated strong ties with the U.S., upgrading its diplomatic relations to the highest level in 2023. This dual approach has allowed Vietnam to benefit from supply chain shifts as businesses relocate from China to avoid U.S. tariffs. Vietnam’s trade with China surged 14.6% year-on-year in 2024, making China its largest trading partner.
Challenges in the South China Sea
Despite growing economic ties, Vietnam and China face longstanding territorial disputes in the South China Sea. Confrontations between Vietnam’s coast guard and Chinese vessels have occurred but are rarely publicized. In his editorial, Xi called for peaceful resolution of maritime issues, citing past successes in delimiting boundaries as evidence of the potential for negotiation.
Regional Implications of U.S. Tariffs
Trump’s tariff policies have created uncertainty for Southeast Asian nations, many of which rely heavily on exports. Vietnam and Cambodia, for instance, were hit with tariffs of 46% and 49%, respectively, before a 90-day pause was announced. Xi’s visit aims to reassure these nations of China’s support and to strengthen economic partnerships that could mitigate the impact of U.S. trade barriers.
Economic and Diplomatic Outcomes
During his visit, Xi is expected to sign approximately 40 agreements with Vietnam across sectors such as railways, agricultural trade, and the digital and green economy. Vietnam has approved plans for an $8.3 billion railway linking Haiphong to China, partially funded by Chinese loans. Additionally, Vietnam is exploring the purchase of Chinese-made passenger aircraft, further deepening economic ties.
Strategic Messaging
Analysts view Xi’s tour as a calculated effort to present China as a reliable and cooperative global leader. Wen-ti Sung, a non-resident fellow at the Atlantic Council, noted that Xi’s approach contrasts sharply with Trump’s tariff-driven policies. “Instead of fear and pressure, Xi is going to show them love, maybe some ‘souvenirs’ along the way,” Sung said, referring to potential trade deals and strategic partnerships.
Xi’s diplomatic tour highlights China’s focus on strengthening regional alliances and promoting multilateral trade amid global economic uncertainty. As Southeast Asian nations navigate the complexities of U.S.-China relations, Xi’s visit underscores the importance of cooperation and stability in fostering economic growth and addressing shared challenges.