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02 May 2025 : China’s strategic push — Asia ties amid tariff tensions

Editorial 2: China’s strategic push — Asia ties amid tariff tensions 

Context

Beijing’s outreach to Southeast Asia could hinder the U.S. in its attempts to form a coalition aimed at isolating or deterring China economically.

 

Introduction

Xi Jinping’s three-nation tour (April 14-18, 2025) to Vietnam, Malaysia, and Cambodia aimed to present China as the most reliable partner. With 145% tariffs from the Trump administration, China is adjusting its economic strategy, focusing on countries with strong ties. The visit is part of Beijing's effort to ease external economic pressure, maintain stability, and strengthen its leadership in the Indo-Pacific, following the Central Conference on neighboring countries.

 

As a buffer and bridge

  • China's Strategy to Insulate Itself
    • China aims to protect itself from the impact of a deepening trade war with the U.S., which includes tariffs, export controls, technology bans, and financial decoupling.
    • Southeast Asia serves as both a buffer and a bridge, offering resilient trade channels, manufacturing alternatives, and diplomatic partners to counter the U.S.-led narrative of de-risking and containment.

Country

Tariff Impact (Under Trump)

China's Rebuttal

Cambodia

Up to 59% combined tariff (10% universal + 49% post 90-day pause)

China’s support for business and multilateralism; largest investor and trade partner

Vietnam

46% tariff

45 cooperation agreements signed during Xi’s visit; focus on economic and diplomatic ties

Malaysia

24% tariff

30+ agreements on digital economy, AI, agriculture, and infrastructure
  • Mr. Xi’s Visits and Agreements
    • In Vietnam, Mr. Xi’s meetings resulted in the signing of 45 cooperation agreements.
    • In Malaysia, discussions led to the signing of over 30 agreements covering sectors like digital economy, artificial intelligence, agriculture, and infrastructure.
    • Cambodia (first visit since 2016): China reaffirmed its role as Cambodia’s largest investor and trading partner, with bilateral trade exceeding $15 billion in 2024.
  • Funan Techo Canal Project
    • The Funan Techo Canal project in Cambodia exemplifies China’s continued commitment to offering economic opportunities while the U.S. leans toward protectionism.

 

To project a contrast

Aspect

Details

Ideological and Normative Competition

Beijing contrasts its model of non-interference and economic engagement with U.S. interventionism and ideological rigidity.

Resonance in Cambodia

The narrative resonates strongly in Cambodia, a close political ally of Beijing.

Resonance in Malaysia

To a lesser extent, the narrative also resonates in Malaysia, which seeks to maintain a balanced foreign policy.

Soft Power Strategy

Mr. Xi’s emphasis on a code of conduct in the South China Sea, BRI infrastructure development, and cultural linkages aims to recast China as a normative leader in regional order-building and offer an alternative to the U.S.-led liberal international order.

Political Significance of Timing

The visit is politically significant as U.S. engagement with Southeast Asia has been episodic, often perceived as reactive, while China offers tangible deliverables like infrastructure projects, digital collaboration, trade facilitation, and security dialogues.

U.S. Indo-Pacific Strategy

U.S. Indo-Pacific strategy is often seen as security-heavy, focused on countering China, while China’s approach emphasizes economic diplomacy.

Intra-ASEAN Dynamics

Mr. Xi’s visit plays into intra-ASEAN dynamics, deepening ties with Vietnam and Malaysia. Vietnamreassured on the South China Sea, and Malaysia is drawn to peaceful dispute resolution and BRI collaboration.

U.S. vs China Economic Diplomacy

While the U.S. emphasizes security partnerships (AUKUS, Quad, bilateral alliances), China focuses on economic diplomacy, with clear offers of investment and trade. The U.S.'s Indo-Pacific Economic Framework is criticized for lacking market access incentives compared to China.

The larger picture

  • Beijing’s ability to position itself as an indispensable economic partner may hinder U.S. efforts to form a coalition to isolate or deter China economically.
  • If Southeast Asia becomes more economically interdependent with China, Washington will struggle to implement an effective economic counter-strategy.
  • Mr. Xi’s Southeast Asia tour is a strategic move to solidify Chinese influence in the Indo-Pacific during a time of systemic flux.
  • In the U.S.-China contest for regional dominance, this diplomacy serves as calculated strategic positioning, with significant long-term consequences for regional alignment, economic integration, and rule-setting.

 

Conclusion

This tour also signals domestic political support for Mr. Xi, showing that China is not isolated despite Western pressure. Warm receptions, economic deals, and strategic dialogues bolster his authority and counter negative narratives about the economic slowdown or diplomatic tensions with the West. It also reassures the region and the Global South that China remains a reliable partner, though it remains to be seen how Southeast Asia will respond to his outreach despite Beijing's unilateral actions.