During his Southeast Asia tour, Chinese President Xi Jinping criticized “the law of the jungle” and called for peace, cooperation, and inclusiveness in the region. His message stands in stark contrast to the U.S. trade policies under President Donald Trump, which have raised tariffs and created uncertainty. Xi’s appeal for unity and stability has resonated not only in Southeast Asia but also among traditional U.S. allies. This shift could lead to stronger economic ties between China and other global powers, shifting the balance of international trade and cooperation.
Xi Jinping’s Call for Unity and Cooperation
On his recent tour, Xi emphasized that nations should stand united against the geopolitical confrontations that threaten global stability. In Malaysia, he vowed that China and its partners would resist the pressures of unilateralism and protect the international order. This message, appealing to shared Asian values, is a direct response to the disruptions caused by Trump’s trade policies. Malaysian Prime Minister Anwar Ibrahim highlighted China as a rational, strong, and reliable partner, especially in an era of growing geopolitical uncertainty.
The Impact of U.S. Tariffs on Southeast Asia
Southeast Asia plays a crucial role in the shifting global trade dynamics. Malaysia, as the current chair of ASEAN, is in a position to shape the region’s economic direction. The country is navigating high-stakes negotiations with the U.S., trying to avoid steep tariffs that could hurt its economy. While China remains excluded from tariff pauses, the U.S. continues to increase tariffs on Chinese imports, which directly impacts trade relations in the region. Xi’s message of resistance against protectionism is gaining traction in these nations.
Xi’s Tour Strengthens Economic and Political Ties
Xi’s recent visit to Vietnam and Cambodia further solidified China’s position in the region. Both countries face high U.S. tariffs, with rates as high as 46% in Vietnam and 49% in Cambodia. Xi’s call for solidarity against American bullying is finding an audience in these nations, which view China as a stabilizing force amid U.S. trade policy shifts. Cambodia, though smaller in size, has increasingly aligned itself with China, particularly through economic and military agreements like the Ream Naval Base.
Global Impact of Trump’s Trade Policies
China’s trade policies are having ripple effects beyond Southeast Asia. U.S. allies in Europe, Japan, and South Korea are now more receptive to strengthening their ties with China, which may undermine Trump’s efforts to isolate Beijing. A recent economic dialogue between China, Japan, and South Korea marks a significant step towards closer cooperation. Both countries are concerned about the impact of Washington’s trade policies, prompting them to seek alternatives in China.
The European Union’s Shift Toward China
The European Union, the world’s third-largest economy, is also reconsidering its stance on China. With trade tensions on the rise between the EU and the U.S., the EU is exploring stronger economic ties with China. Spanish Prime Minister Pedro Sanchez’s recent meeting with Chinese leaders signals a growing interest in expanding trade and investment. Despite longstanding disagreements over issues like industrial policy, the EU recognizes the importance of finding common ground with China to avoid over-reliance on the U.S. As the EU deepens its relations with emerging economies like India, the Philippines, and Indonesia, it also seeks to balance its strategic autonomy in a multipolar world.
Rising Powers and a Post-American World
While the U.S. remains a dominant global force, Trump’s approach to trade may accelerate the emergence of a new world order. Rising powers and regional blocs are increasingly capable of operating independently from Washington, shifting the global economic balance. In this evolving landscape, China’s role as a leader in fostering cooperation and economic growth is becoming more pronounced. The EU and other powers are reevaluating their relationships with the U.S. and seeking more balanced and strategic partnerships.
