China's Xi Jinping Champions Free Trade in Southeast Asia Amidst US Tariff Tensions

Xi Jinping's recent tour of Southeast Asia, particularly Vietnam, highlights China's efforts to maintain a narrative of support for free trade against perceived US bullying.

 

China's President Xi Jinping has embarked on a significant tour through Southeast Asia, with Vietnam as the backdrop for his urgent appeals for collective resistance to "unilateral bullying." Although Xi refrained from directly attacking the United States, the implications of his remarks resonated strongly amid the escalating trade tensions between the two world powers. This diplomatic endeavor is being characterized as a "charm offensive," with upcoming visits to Malaysia and Cambodia.

The backdrop to Xi’s visit involves the ongoing trade war initiated by the Trump administration, which has seen proposed tariffs on Vietnamese goods climb as high as 46%. Recently, however, President Trump announced a temporary cessation of these tariffs for 90 days, which marks a notable pause in the escalating conflict. Trump, speaking from the Oval Office, expressed skepticism about Xi's meetings with Vietnamese leaders, suggesting they might be schemes to undermine American interests.

Chinese state media reported that during his talks with Vietnam's Communist Party Secretary-General, Xi insisted on nurturing a unified stance against economic coercion, emphasizing the importance of a stable global trade system. Stephen Olson, a former US trade negotiator, interpreted Xi's approach as strategic—positioning China as a defender of global trade rules while criticizing the US for its unpredictable tactics.

The trade skirmish reached a new height when the Trump administration imposed an alarming 145% tariff on numerous Chinese imports, prompting Beijing to retaliate with its own 125% tariffs on American goods. Amidst this environment, a recent US customs notice evoked confusion around the applicability of tariff exclusions for various electronics, leading Trump to clarify through social media that no such exemptions existed, labeling conflicting reports as false.

As Xi's visit unfolded in Vietnam, he was greeted enthusiastically by local citizens and engaged with key government officials, including the Vietnamese Prime Minister. Notably, Xi also paid tribute at the Ho Chi Minh Mausoleum, showcasing his outreach to Vietnam's historic and ideological ties.

Despite the warm receptions, experts, including Susannah Patton from the Lowy Institute, caution that Vietnam must tread carefully, ensuring that its game plan does not signal overt collusion with China against the US—an important economic partner for Vietnam. The intricate balance of economic competition and cooperation with China defines Vietnam's ongoing strategy in the region.

Now commencing his itinerary in Malaysia, Xi is poised for discussions with local leadership, reinforcing the narrative that positions China as a reliable partner in contrast to the US’s increasingly protectionist stance. Observers assert that Xi’s trip across Vietnam, Cambodia, and Malaysia may serve as a critical opportunity for China to reshape public perception and strengthen its influence in Southeast Asia, potentially shifting the narrative in its favor.