Chinese President Xi Jinping commenced a diplomatic visit to Southeast Asia, highlighting the futility of trade wars and contrasting China’s stability-oriented approach with the tariff policies of US President Donald Trump. In an editorial co-published in Vietnamese and Chinese media, Xi asserted that “there are no winners in a trade war,” while Trump maintains substantial tariffs, including a staggering 145% duty on Chinese imports.
During his tour, Xi emphasised the need for nations to support a reliable multilateral trading system and protect global industrial and supply chains. This visit allows China to position itself as a responsible superpower, in stark contrast to the confrontational stance of the US under Trump’s leadership, as noted by Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS-Yusof Ishak Institute.
Trump, while professing respect for Xi, has interpreted the meeting between China and Vietnam as an effort to undermine US trade interests. He insinuated that both nations were collaborating to compete against the United States. In this context, the diplomatic exchange gains relevance as tensions escalate from the ongoing trade dispute with the US.
Xi was welcomed at the Hanoi airport by Vietnam’s President Luong Cuong, a gesture reflecting the warmth of Sino-Vietnamese relations, which are often seen as pivotal amidst the broader East Asian dynamics. Although Xi’s visit was likely planned in advance, its timing against the backdrop of US-China trade tensions adds significant weight. It offers China the opportunity to strengthen ties with its regional allies and address the high tariffs imposed by the US on Chinese products.
During the visit, Vietnam and China inked several memorandums, enhancing cooperation in critical areas such as supply chain resilience, railway development, and environmental protection, signalling a deepening partnership between the two countries. Notably, Nhan Dan, Vietnam’s Communist Party’s official publication, announced plans to accelerate a significant $8 billion railway project linking Vietnam and China.
Vietnam has adeptly balanced its diplomatic relations with both the US and China, uniquely positioned as a communist country with strong ties to the US. In 2023, it successfully hosted both President Biden and Xi Jinping, marking it as the only nation to achieve such recognition in the same year. Moreover, Vietnam elevated its diplomatic engagement with the US, aligning its status with other major powers like China and Russia.
In summary, Xi’s diplomatic mission serves not only to recalibrate China’s regional influence amidst tariff struggles but also to reinforce Vietnam’s strategic role in navigating its relationships with these two global powers.