HANOI, Vietnam (AP) — China’s leader, Xi Jinping, kicked off a week of diplomacy in Southeast Asia with a visit to Vietnam. This trip comes at a crucial moment, especially after U.S. President Donald Trump shook up the global economy with new tariffs targeting China.
While some tariffs were paused, many on Chinese goods, totaling 145%, remain. Xi’s visit highlights China’s intention to present itself as a responsible player in global trade, contrasting sharply with the U.S. approach under Trump. Nguyen Khac Giang, a research fellow at Singapore’s ISEAS–Yusof Ishak Institute, noted that this is China’s chance to showcase its leadership and to strengthen ties with Southeast Asia.
In an editorial released in Vietnamese and Chinese media, Xi emphasized the negative impact of trade wars, stating, “There are no winners in a tariff war.” He urged the need to uphold a stable global trading system and maintain cooperative relationships in international markets.
During his two-day stay in Vietnam, Xi is set to meet key leaders, including Vietnam’s Communist Party General Secretary To Lam and Prime Minister Pham Minh Chinh. His trip is especially notable as it marks his third visit to Vietnam since becoming president in 2013. Such visits are significant, especially given the ongoing trade tensions between the U.S. and China.
Nguyen pointed out that Xi’s timing is strategic, sending a clear message to Southeast Asia that it matters to China. Huong Le-Thu from the International Crisis Group echoed this sentiment, saying Xi’s trip is a showcase of China’s desire to counter U.S. influence.
Vietnam finds itself in a unique position. It has maintained a balance between its relationships with both the U.S. and China. In 2023, it was the only nation to host both President Biden and Xi, symbolizing its diplomatic strength. The country’s trade with China, its largest partner, increased by 14.6% year-on-year in 2024, illustrating how the trade dynamics in the region are evolving.
However, the trade war has put Vietnam in a tough spot, as it risks being seen as an intermediary for Chinese goods. Giang mentioned that the U.S. had imposed tariffs on 46% of Vietnamese exports before the recent pause, exacerbating this precarious situation.
Despite these challenges, the two nations do have long-standing territorial disputes in the South China Sea, which they typically keep under wraps. As Xi continues his tour of Southeast Asia, including stops in Malaysia and Cambodia, the region will be watching closely to see how these relationships unfold in light of the shifting global trade landscape.
For more insight into the evolving dynamics of international trade, you can read this detailed report on the topic from the World Trade Organization.
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