Chinese President Xi Jinping has embarked on a high-stakes diplomatic and economic tour of Southeast Asia, visiting Vietnam, Malaysia, and Cambodia at a time when Donald Trump’s sweeping new tariffs have sent tremors through global trade routes. The trip aims to position China as a dependable trade partner, build resilience against U.S. protectionism, and shore up Beijing’s influence across ASEAN amid shifting geopolitical tides.
Trump’s Tariff Shockwaves Across Asia
Xi’s 2025 Southeast Asia visit comes in the aftermath of an escalating U.S.-China trade war, intensified by former President Donald Trump’s return to the White House. Trump has imposed a staggering 145% tariff on Chinese goods, while also targeting Southeast Asian nations. Notably:
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Vietnam: 46% U.S. tariff
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Cambodia: 49% U.S. tariff
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Malaysia: 24% U.S. tariff (temporarily suspended for 90 days, with semiconductor exports likely exempted)
These tariffs have deeply rattled ASEAN economies, many of which are export-driven and rely heavily on the U.S. as a key consumer market. China, seizing the opportunity, is presenting itself as a stable alternative partner committed to upholding a rules-based global trade order.
Vietnam Visit: Balancing Act Between Giants
Xi began his tour in Vietnam, where both symbolic and practical diplomatic efforts were on full display. China is expected to sign dozens of cooperation and investment agreements, with particular focus on:
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Upgrading Vietnam’s railway network
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Enhancing cross-border trade and supply chain linkages
Vietnam finds itself in a delicate position, walking a tightrope between its economic dependence on the U.S. and its geographic and trade proximity to China. The U.S. remains a critical market, accounting for 30% of Vietnam’s GDP through exports. Following the announcement of tariffs, Vietnam has made several concessions to Washington:
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Dispatched Deputy Prime Minister Ho Duc Phoc to the U.S.
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Offered to remove all tariffs on U.S. imports
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Committed to buying more U.S. goods, including defense and security products
Simultaneously, Hanoi is cracking down on transshipment of Chinese goods through its territory to evade U.S. tariffs and is tightening rules on dual-use exports like semiconductors.
Vietnam had benefited from the previous round of U.S.-China trade tensions during Trump’s first term, attracting manufacturing firms fleeing Chinese tariffs. However, this also led to a trade surplus with the U.S. exceeding $123 billion, making it a fresh target for U.S. protectionism. Vietnam’s ambition to become a high-income nation by 2045 hinges on export growth, which is now under threat.
Malaysia: Seeking Trade Diversification and Strategic Balance
Xi arrived in Malaysia on Tuesday for a three-day state visit—his first since 2013—at a moment when Malaysian policymakers are bracing for economic turbulence due to Trump’s tariffs. During the visit, Xi is scheduled to:
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Meet King Sultan Ibrahim Iskandar
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Hold bilateral talks and a dinner with Prime Minister Anwar Ibrahim
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Oversee the signing of a series of economic agreements on Wednesday
Key Economic Figures:
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China-Malaysia trade in 2024: RM484.12 billion (US$110 billion)
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U.S. purchases of Malaysian goods (2024): US$45 billion, primarily semiconductors
The U.S. market remains vital, especially for Malaysia’s semiconductor industry, which may temporarily escape tariffs. However, other sectors—scientific equipment, wooden furniture, rubber gloves—face significant risks. Trade groups warn of:
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Billions in export losses
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Tens of thousands of job cuts
Xi’s visit offers an opportunity to expand access to China’s market, as Malaysian companies seek to diversify and offset potential U.S. losses.
Diplomatic and Strategic Context:
Malaysia is one of the founding members of ASEAN, and Prime Minister Anwar currently serves as chair of the 10-member bloc. He emphasized ASEAN’s strength, noting its:
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660 million population
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US$3.8 trillion GDP
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Status as the world’s fastest-growing and most peaceful region
Anwar urged ASEAN to recognize its internal economic might and avoid being sidelined by global superpowers. Yet, ASEAN has not adopted a unified position on U.S. tariffs, and individual member states, including Malaysia, are pursuing direct bilateral talks with Washington.
Experts such as Roy Anthony Rogers of Universiti Malaya believe Malaysia should revive regional trade frameworks like the East Asia Economic Caucus, and pursue ties with the EU, Japan, South Korea, and even GCC and African nations for economic diversification.
Xi’s Rolling Symbolism: The “Chinese Rolls-Royce”
During his Malaysia visit, Xi is being chauffeured in the ultra-exclusive Hongqi N701 limousine—a heavily armoured, luxury vehicle:
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Known as the “Chinese Rolls-Royce”
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Around 5.5 meters long
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Powered by either a 6.0-litre V12 or a turbocharged V8
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Built with military-grade armor
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Features bulletproof glass, run-flat tires, and an airtight cabin
The choice of vehicle underlines both state grandeur and strategic symbolism, emphasizing China’s self-reliant high-tech capabilities.
Cambodia Visit: Deepening Ties with a Trusted Ally
Xi will also visit Cambodia, where ties are already described by Beijing as “iron-clad.” Cambodia is among the worst hit by Trump’s tariffs, with exports to the U.S. accounting for 25% of GDP and the garment sector employing 750,000 workers.
Cambodia’s alignment with China has grown significantly in recent years:
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Recently completed a China-funded naval base upgrade
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Inaugurated a Chinese-funded road project
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Hosted Xi for the first time in over nine years
Cambodian Prime Minister Hun Manet, who succeeded his father Hun Sen in 2023, reaffirmed the strength of bilateral ties during these events. China continues to support Cambodia as a key political and economic ally in the region.
Broader Strategic Aims: China's "Charm Offensive" in Southeast Asia
Xi’s Southeast Asia tour is part of a broader diplomatic push to reshape China’s global image amidst U.S. trade aggression. Key developments include:
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China has called for the complete rollback of U.S. tariffs, labeling them a “wrong practice”
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Beijing implemented 125% retaliatory tariffs on U.S. goods, effective Saturday
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Xi emphasized during meetings with Spanish PM Pedro Sánchez and Indonesian President Prabowo Subianto that China opposes unilateral acts of economic bullying
Stephen Olson, a former U.S. trade negotiator now at the ISEAS – Yusof Ishak Institute, noted that Xi is positioning China as the guardian of the global trade system, contrasting Washington’s tariff-driven chaos.
Even if no breakthrough agreements emerge, these visits carry symbolic weight, reflecting Xi’s intent to assure Southeast Asian leaders that China remains a reliable and pragmatic partner.
South China Sea and the Tightrope of Neutrality
Many ASEAN countries—Vietnam, Malaysia, the Philippines, and Brunei—have overlapping claims with China in the South China Sea, through which US$3 trillion in trade flows annually. These maritime tensions, alongside growing trade friction, compel ASEAN nations to maintain a delicate balance between the U.S. and China.
Experts stress that Southeast Asia is unlikely to abandon its long-standing stance of non-alignment, but is actively seeking to diversify economic partnerships to weather future shocks.
A Diplomatic Counteroffensive with Economic Stakes
Xi Jinping’s tour of Southeast Asia comes at a critical moment, as Trump’s aggressive tariffs unsettle regional economies. Through strategic charm, infrastructure deals, trade partnerships, and soft-power gestures, China is working to solidify its position as ASEAN’s indispensable partner, both to absorb the blow of U.S. tariffs and to realign the regional order in Beijing’s favor.
The challenge for ASEAN nations now lies in leveraging China’s overtures without surrendering their economic or geopolitical autonomy, while quietly urging the U.S. to reconsider its punitive trade approach that threatens to derail one of the world’s most dynamic regions.
With inputs from agencies
Image Source: Multiple agencies
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