Amid the ongoing U.S.-China trade war, Chinese President Xi Jinping has embarked on a diplomatic tour of Southeast Asia, advocating for free trade and unity against “unilateral bullying.”
What Happened: Xi Jinping reached Vietnam on Monday, marking the beginning of his diplomatic tour of the region’s major export-dependent economies. Later this week, the Chinese leader is scheduled to visit Malaysia and Cambodia, countries that have witnessed an increase in trade relations with China lately, reported The South China Morning Post.
During his meetings with Vietnam’s President To Lam and Prime Minister Pham Minh Chinh, Xi encouraged the country to stand against “unilateral bullying” and to uphold free and open trade. He reiterated China’s commitment to preserving “the stability of the global free trade system and industrial and supply chains,” as reported by Xinhua, the Chinese state news agency.
"Isolated small boats cannot withstand stormy waves. Only by working together on the same boat can we sail steady and far,” Xi stated as he called for Vietnamese support.
Meanwhile, when asked about the China-Vietnam meeting, Trump told reporters, "That's a lovely meeting — meeting like, trying to figure out: ‘How do we sc**w the United States of America?' Don't forget, the European Union was formed to do just that."
Why It Matters: This tour follows U.S. President Donald Trump‘s recent decision to temporarily suspend his “reciprocal” tariffs on most countries for 90 days, thereby shifting the spotlight onto the U.S.-China trade war.
Vietnam has seen a sharp rise in Chinese investments as manufacturers shift supply chains from China to benefit from lower labor costs and avoid U.S. tariffs. Between 2017 and 2024, trade between the two nations nearly doubled, making Vietnam China’s top trade partner in Southeast Asia. However, concerns are growing in the region about an influx of cheap Chinese goods, which face high tariffs in the US. China currently runs a trade surplus with Vietnam, exporting 1.6 times more than it imports.
Southeast Asian nations, still affected by the recently suspended U.S. tariffs, are growing increasingly concerned about being caught in the crossfire of tensions between the U.S. and China.
Wen-ti Sung, a non-resident fellow at the Atlantic Council, told CNN, “What Xi is trying to do now is to go there in person. Instead of fear and pressure, Xi is going to show them love, maybe some ‘souvenirs' along the way," he said, alluding to potential new trade deals and enhancements to their strategic partnerships.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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