Xi Jinping's Southeast Asia Tour Positions China as Regional Shield Against Trump Tariffs
Chinese President Xi Jinping concluded his high-profile visit to Malaysia on Thursday, cementing economic ties and presenting China as a more reliable trading partner than the United States amid escalating trade tensions with the Trump administration. The three-day state visit, part of a broader Southeast Asian tour, delivered a clear message: China stands ready to "safeguard" Asian economies from Western protectionism and unilateral tariff policies.
Strategic Diplomatic Offensive Amid US-China Trade War
President Xi's Malaysia visit—his first since 2013—comes at a critical moment when Southeast Asian nations face mounting economic pressure from Washington. The timing is far from coincidental, occurring shortly after the Trump administration announced sweeping tariffs ranging from 24 to 49 percent on goods from the region Reuters1.
"In the face of shocks to global order and economic globalization, China and Malaysia will stand with countries in the region to combat the undercurrents of geopolitical confrontation, as well as the counter-currents of unilateralism and protectionism," Xi declared during a state dinner with Malaysian Prime Minister Anwar Ibrahim DW2.
The Chinese leader's Southeast Asian tour—which began in Vietnam and concludes in Cambodia—has consistently emphasized multilateralism and open trade, deliberately contrasting with Trump's confrontational approach. While Trump has temporarily suspended these tariffs for 90 days, regional economies remain anxious about future access to American markets.
During meetings with Malaysia's King Sultan Ibrahim ibni Iskandar and Prime Minister Anwar Ibrahim, Xi successfully secured dozens of agreements covering railway and aviation cooperation under the Belt and Road Initiative, along with partnerships in technology and energy sectors SCMP3.
South China Sea Diplomacy: Balancing Territorial Claims with Economic Cooperation
In a significant development, both nations addressed the contentious South China Sea issue, pledging to "seek to peacefully resolve disputes" and expressing their determination to conclude negotiations on a code of conduct with the Association of Southeast Asian Nations (ASEAN) by next year Reuters1.
This diplomatic breakthrough attempts to ease tensions in a region where territorial disputes have disrupted fishing and energy exploration. Notably, Malaysian PM Ibrahim had previously declared that Malaysia would not bow to Chinese demands regarding oil and gas exploration in contested waters.
The joint statement carefully balanced Chinese interests with Malaysian sovereignty concerns while emphasizing their shared commitment to regional stability—a delicate diplomatic achievement considering the competing territorial claims.
Malaysia's Warm Reception Amid Trump's "Economic Tribalism"
Malaysian leaders offered an enthusiastic welcome to Xi, with Prime Minister Anwar Ibrahim delivering pointed criticism of American trade policies without directly naming the United States.
"What we are witnessing today is not an honest reckoning with the imperfections of globalization, but a retreat into economic tribalism. Market access is being weaponized," Ibrahim stated. "In these trying times, the world yearns for steadiness, reliability and a common purpose. We see this in China's conduct" DW2.
Mohamed Nazri Abdul Aziz, former Malaysian ambassador to the US, reinforced this sentiment: "China is telling us they are a reliable trading partner, more than the US. We never had problems dealing with them... Under PM Anwar, Malaysia is getting very much closer to China. It's a good thing... In the long run, Washington's influence will be reduced" Al Jazeera4.
Economic Deals: Aircraft, Semiconductors, and De-dollarization
The three-day visit yielded concrete economic outcomes, particularly in high-technology sectors. China and Malaysia signed agreements supporting Chinese-made aircraft sales and semiconductor cooperation, according to the South China Morning Post SCMP3.
Beyond specific industry agreements, analysts noted broader strategic implications. "One of the things they [the Chinese] are trying to do is to set up a bilateral trading system where they can stop using US dollars," explained James Chin, professor of Asian studies at the University of Tasmania Al Jazeera4.
This potential shift away from dollar-denominated trade aligns with China's global strategy to reduce dependence on US-controlled financial systems. Willy Wo-Lap Lam, a senior China analyst with the Jamestown Foundation, observed that enhanced trade with Malaysia will help compensate for expected downgraded exports to the US Al Jazeera4.
Multilateral Framework Versus Unilateral Tariffs
The joint statement from both countries emphasized their commitment to "upholding the rules-based, non-discriminatory, open, fair, inclusive, equitable and transparent multilateral trading system with WTO at its core" SCMP3.
Both nations explicitly rejected "unilateral trade restrictive measures including arbitrary tariff hikes that are inconsistent with WTO rules." Additionally, they pledged continued cooperation within international frameworks including the United Nations, World Trade Organization, World Health Organization, and the BRICS grouping of emerging economies.
Malaysia also reiterated its commitment to the one-China policy and stated it would not support any call for Taiwan's independence. The joint statement further addressed global issues, declaring that "Gaza is an inalienable part of the territory of Palestine" and urging implementation of ceasefire agreements Reuters1.
Expert Analysis: Building a New International Order
Regional experts view Xi's Southeast Asian tour as strategically significant beyond immediate economic arrangements.
"This is all architectured to build a new international order," said James Chin. "Trump has given China the excuse to push harder amongst countries around the world, especially developing countries" Al Jazeera4.
Oh Ei Sun from the Pacific Research Center of Malaysia described Xi's regional outreach as "a group of friends huddling together for warmth against harsh weather," highlighting the mutual benefits perceived in closer China-ASEAN relations DW2.
The Regional Comprehensive Economic Partnership (RCEP) free trade agreement—which includes all ten ASEAN nations along with China, Japan, South Korea, Australia, and New Zealand—provides a framework for this emerging order. Xi's Southeast Asian diplomatic offensive reinforces this structure while presenting alternatives to US-dominated economic systems.
Looking Ahead: ASEAN, Cambodia, and Regional Realignment
As Xi departed for Cambodia, the final stop on his three-nation tour, analysts noted the visit's significance for regional economic integration. Malaysia currently holds the ASEAN chair for 2025, giving its relationship with China additional strategic importance for the entire region.
The Chinese leader is expected to discuss expanding the free trade agreement between China and ASEAN members during his Cambodia visit, further cementing Beijing's economic influence across Southeast Asia DW2.
In his parting remarks, Xi articulated a vision that resonated with regional interests: "Together we will safeguard the bright prospects of our Asian family" DW2.
A Turning Point for Regional Economic Architecture?
As Southeast Asian nations navigate between competing major powers, Xi's diplomatic offensive and Trump's tariff threats may accelerate regional economic realignment. With China positioning itself as the dependable partner while offering market access, technology cooperation, and infrastructure development, the traditional US-centered trade system faces unprecedented challenges.
Will Southeast Asia's economic future increasingly orbit around Beijing rather than Washington? The answer may depend on whether Trump's "economic tribalism" proves temporary or becomes America's enduring approach to global trade.
