As China navigates a challenging trade war with the United States, it is focusing on strengthening its relationships in Southeast Asia. Chinese leader Xi Jinping is set to visit Vietnam, Malaysia, and Cambodia this week, aiming to mitigate the impact of significant tariffs imposed by President Trump on Chinese exports.
During his visit, Mr. Xi is expected to present China as a dependable global partner, contrasting it with the unpredictable nature of U.S. trade policies. In Vietnam, he is anticipated to oversee the signing of approximately 40 agreements, including financial arrangements for a railway project worth $8.3 billion that will connect northern Vietnam with China.
However, the visit underscores the delicate diplomatic balancing act that Southeast Asian nations must perform as they negotiate with the Trump administration for relief from tariffs. Mr. Xi's tour will commence in Vietnam on Monday, followed by a three-day visit to Malaysia, and conclude in Cambodia.
Trade issues will likely dominate discussions, as Southeast Asia grapples with the implications of U.S. tariffs and the potential influx of Chinese goods into their markets. China has become the region's most significant trading partner over the past decade, with many Southeast Asian countries relying on Chinese imports for their manufacturing sectors.
Since the imposition of tariffs on Chinese goods, Southeast Asian nations have served as alternative routes for these products to reach the U.S., making them targets for Trump's tariffs, which have been temporarily paused. There are concerns that the tariffs could lead to an oversupply of inexpensive Chinese goods in Southeast Asia, potentially destabilizing local economies.
Experts suggest that Mr. Xi will seek insights into how other nations plan to respond to the ongoing trade conflict. Strengthening ties with these countries is crucial for China, especially in light of potential economic challenges arising from the trade war.
While engaging with China, Southeast Asian leaders must also be cautious not to appear overly aligned with Beijing. Some Vietnamese officials worry that the prominence of Mr. Xi's visit could complicate their negotiations for tariff relief with the U.S.
Malaysian Prime Minister Anwar Ibrahim emphasized the importance of maintaining a balanced relationship with China, acknowledging its significant role in the region while navigating the complexities of international relations.
Additionally, Mr. Xi's visit may require addressing ongoing territorial disputes between China and both Malaysia and Vietnam. Recent military activities by Chinese naval forces near Vietnam have heightened tensions, underscoring the need for China to demonstrate a willingness to ease its assertive stance in the region.