Xi Jinping’s Journey: Strengthening Ties in South-East Asia
As the trade war simmers on, Xi Jinping, the President of China, is poised to embark on a notable tour of South-East Asia. This visit aims to bolster relations with Vietnam, Malaysia, and Cambodia, amidst the tense backdrop of tariffs and economic skirmishes, positing China as a stable regional partner.
A Journey of Significance
Commencing on Monday, the President’s sojourn in Vietnam marks the beginning of this diplomatic mission. From there, Xi Jinping will continue to Malaysia and Cambodia. The tour, abundantly described by Chinese officials as of “major importance,” underscores the intricate diplomatic choreography amidst an escalating trade war.
Aligning Economic Relations
During Xi’s Vietnamese visit, the expectation is that a multitude of agreements will be forged, potentially encompassing investment and cooperation in developing Vietnam’s railway network. This move is not merely transactional; it highlights China’s intent to position itself as a formidable economic ally. Notably, Vietnam, celebrated for its manufacturing prowess, along with Cambodia, whose garment and footwear sectors are economic linchpins, have borne the brunt of US-imposed tariffs.
Recently, China urged the United States to rescind its hefty 145% tariffs levied on Chinese imports, except those targeting consumer electronics and key chipmaking equipment. In response, China’s commerce ministry advocated for the complete cancellation of these tariffs to restore mutual respect, whilst it implemented retaliatory tariffs of its own.
China’s Regional Stature
In the context of contrasting the US tariffs, China presents itself as a reliable partner, unlike Washington, which has shaken regional markets. Stephen Olson, a former US trade negotiator, speculates that China may seek to embody the role of a responsible leader in the rules-based trade system while depicting the US as a disruptive force. Although clear outcomes from these meetings remain uncertain, the symbolic weight of China’s regional engagements cannot be overstated.
Vietnamese Diplomatic Balancing Act
Vietnam has been navigating these turbulent waters with diplomacy. The country’s deputy prime minister, Ho Duc Phoc, recently engaged with Washington, expressing intentions to remove all tariffs on US imports and enhance American product purchases. This is indicative of Vietnam’s strategic manoeuvring to mitigate the impact of the 46% tariffs imposed by the US, especially given its export-driven ambition to attain high-income nation status by 2045.
Concerns in the Region
The 145% tariff on China by the US poses significant peril for nearby countries, potentially inundating them with inexpensive Chinese products. Vietnam and its regional colleagues aim to sidestep taking definitive sides between China and the US, hence preserving their autonomous diplomatic stance. Meanwhile, Vietnamese officials are also tightening controls on sensitive exports to China, as reported by Reuters, tightening export regulations on semiconductors.
Cambodia and Malaysia’s Perspective
Cambodia and Malaysia are also keen on negotiations with the US, given the potentially devastating impact of the tariffs. Cambodia’s garment industry, employing a formidable workforce, faces significant exposure as US exports contribute substantially to its GDP. Moreover, Cambodia celebrates the recent completion of a China-backed naval base upgrade.
Looking Towards Future Collaborations
For Malaysia, Xi’s visit is a milestone, representing an earnest endeavour to cultivate improved trade ties. The country’s communications minister, Fahmi Fadzil, emphasized the importance of enhancing international relations, particularly with China. Echoing similar sentiments, Xi Jinping recently reaffirmed commitments to Indonesia, expressing intentions to deepen strategic partnerships.
A Wider Diplomatic Canvas
In parallel efforts, dialogues between Premier Li Qiang and the European Commission president focused on preserving a robust, reformed trading system. As Xi Jinping concluded discussions with Spain’s prime minister, a shared opposition to unilateral economic bullying was vocalised. Symbolically, these moves form part of a broader charm offensive by China following the trade war, seeking to bridge divides and foster global cooperation in these juxtaposed times.
With the visit ready to unfold, it remains to be seen how the facets of diplomacy, trade, and strategic posturing will harmonise in Asia’s ever-evolving geopolitical theatre.
