China’s Xi is making the case for free trade as he tours Southeast Asia this week, presenting China as a source of “stability and certainty”.
On Monday, he was welcomed to Hanoi with pomp and ceremony by Vietnam’s President Luong Cuong.
He arrived in Kuala Lumpur, Malaysia’s capital, later on Tuesday, for a three-day visit — and he will end his tour with a stop in Cambodia.
In Hanoi, Xi had a meeting with Vietnam’s Communist Party General Secretary To Lam, where he said the two countries “have brought the world valuable stability and certainty” in a “turbulent world”. He also paid respects at the mausoleum of Ho Chi Minh, the founder of the Vietnamese Communist Party.
“As beneficiaries of economic globalisation, both China and Vietnam should strengthen strategic resolve, jointly oppose unilateral bullying acts, uphold the global free trade system, and keep global industrial and supply chains stable,” he added, according to a statement from China’s Ministry of Foreign Affairs.
China and Vietnam signed a series of memorandums on cooperation in supply chains and a joint railway project, and Xi also promised greater access for Vietnamese agricultural exports to China, although few details were made public about the agreements.
Trump: trip to “screw the United States”
US President Donald Trump criticised the meeting, which comes days after his tariffs upended global markets and left governments across the world scrambling. Reacting to the meeting on Monday, Trump said China and Vietnam were trying “to figure out how do we screw the United States of America”.
In Malaysia, Xi is expected to discuss a free trade agreement between China and the 10-member Association of Southeast Asian Nations, as Malaysia is chair of the association this year. Xi will meet with King Sultan Ibrahim on Wednesday morning and Prime Minister Anwar Ibrahim later in the day.
ASEAN Secretary-General Kao Kim Hourn told Chinese state media that the agreement will eliminate many tariffs between China and the bloc’s members.
“We will bring more tariffs down to zero in many cases, and then expand to all the areas,” he said in an interview with CGTN, the state broadcaster’s English channel.
Malaysia is home to several Belt and Road Initiative projects, including a $11.2 billion (€9.9bn) Chinese railway project. China is also its largest trading partner and a top source of foreign direct investment.
China’s relationship with its neighbours
Xi’s tour was likely planned before the tariff announcements had disrupted the global economy.
“From the Chinese perspective, it’s mostly about ensuring China’s influence in the region remains strong and vibrant, with Southeast Asia being China’s major trading partner,” said Oh Ei Sun, a senior fellow at Singapore’s Institute of International Affairs.
However, the trip’s timing and the fact that Vietnam, Malaysia, and Cambodia, were all countries impacted by Trump’s tariffs, provides Beijing an opportunity to project how it would act as a “responsible” superpower, one of China’s long-time stances.
“China can offer a lot to Vietnam and other ASEAN countries during this volatile period,” said Nguyen Thanh Trung, a professor of Vietnamese studies at Fulbright University Vietnam. “I think China can be a leader.”
Anwar called China a “true friend” during Li Qiang’s visit in June and has visited China three times since he took power in November 2022.
China’s claims to the South China Sea are a point of contention with both Vietnam and Malaysia. Anwar vowed last September that Malaysia will not bow to demands by China to stop its oil and gas exploration in an oil-rich maritime area in the South China Sea as the activities are within the country’s waters.
