Chinese President Xi Jinping has warned that protectionism will “not reach its destination” and that there will be “no winners” from a trade war, as he begins a tour of Southeast Asia with a visit to Vietnam.
Xi’s first foreign trip of the year comes as Beijing seeks to strengthen regional trade ties and cushion the impact of massive tariffs imposed by his US counterpart Donald Trump. He will meet with three Southeast Asian counterparts during his visit, which Beijing says is of “special significance” for the Asian region.
In an article published in Vietnam’s leading newspaper Nhan Dan on Monday, Xi urged the two countries to “resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and an open and cooperative international environment.” He also reiterated Beijing’s view that “trade wars or tariff wars produce no winners and protectionism gets no one anywhere.”
Beijing has been trying to present itself as a stable alternative to the volatile Trump, who announced sweeping tariffs this month. However, after roiling global markets, Trump has been forced to reverse almost all but the basic tariffs announced against countries other than China, granting a 90-day reprieve, analysts say.
Flexible diplomacy
Vietnam is Southeast Asia’s largest buyer of Chinese goods, with trade worth $161.9 billion, while Malaysia imported $101.5 billion in goods in 2024. Strengthening ties with its Southeast Asian neighbors, which were the largest single buyer of Chinese goods last year, could also help mitigate the impact of US sanctions.
Xi is scheduled to be in Vietnam on Monday and Tuesday. This is his first visit to Vietnam since December 2023. Vietnam and China, both ruled by the Communist Party, already have a “comprehensive strategic partnership,” which is Hanoi’s highest diplomatic status. Vietnam has long pursued a ‘flexible diplomacy’ approach and strives to maintain good relations with both China and the United States.
The two countries have close economic ties, but Hanoi has sided with Vietnam on the side of the US against Beijing’s growing aggression in the disputed South China Sea. China claims almost all of the South China Sea, but the Philippines, Malaysia, Vietnam, Indonesia and Brunei dispute it.
The Chinese leader said in his Monday article that Beijing and Hanoi can resolve these disputes through dialogue. “We must properly manage differences and safeguard peace and stability in our region,” Xi wrote. He said, “Based on the long-term vision, we are fully capable of properly resolving maritime issues through consultation and negotiation.”
After Vietnam, Xi will visit Malaysia from Tuesday to Thursday. Malaysia’s Communications Minister Fahmy Fazil said Xi’s visit was “part of the government’s efforts to achieve better trade relations with various countries, including China.”
After Malaysia, President Xi will visit Cambodia on Thursday, one of China’s staunchest allies in Southeast Asia, where Beijing has expanded its influence in recent years.
