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2nd May 2025 (10 Topics)

China’s strategic push — Asia ties amid tariff tensions

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Context

Chinese President Xi Jinping’s recent three-nation Southeast Asia visit to Vietnam, Malaysia, and Cambodia comes at a time when China faces 145% tariffs from the U.S. under Trump-era protectionist policies. The visit marks a strategic recalibration of China's foreign policy to counter U.S.-led economic decoupling and reinforce Beijing’s influence in the Indo-Pacific. It also follows the Central Conference on Work Relating to Neighbouring Countries, underscoring the importance of consolidating China’s periphery diplomacy.

Economic Diplomacy as Strategic Counterweight

  • Alternative to U.S. Tariffs and Decoupling: Facing punitive U.S. trade actions, China is positioning Southeast Asia as a buffer and bridge to sustain trade routes, diversify manufacturing, and cushion against economic containment efforts.
  • High-Level Engagements and Agreements: Xi’s tour led to the signing of 45 MoUs with Vietnam, over 30 agreements with Malaysia, and reaffirmation of $15+ billion trade with Cambodia, showcasing tangible economic cooperation in infrastructure, AI, agriculture, and digital sectors.
  • Rebuttal to Protectionism: Xi presented China as an open, multilateral economic partner, in contrast to U.S. unilateralism and tariff hikes on regional countries — 59% for Cambodia, 46% for Vietnam, and 24% for Malaysia.

Ideological Messaging and Soft Power Projection

  • Normative Framing Against U.S. Interventionism: China advanced its non-interference doctrine and "community with a shared future" as alternatives to perceived S. ideological rigidity, especially resonant in Cambodia and partially in Malaysia.
  • Promotion of BRI and Regional Codes: China emphasized progress on a Code of Conduct in the South China Sea, promotion of BRI projects, and cultural diplomacy to project itself as a regional order-builder and soft power hub.
  • Strategic Contrast to U.S. Alliances: While the U.S. leans on security coalitions (Quad, AUKUS), China is focusing on economic deliverables and public goods, filling a vacuum left by the Indo-Pacific Economic Framework’s lack of market access incentives.

Political Signalling and Regional Realignment

  • Intra-ASEAN Calibration: Outreach to Vietnam, traditionally cautious of Chinese assertiveness, signals China’s willingness to soothe strategic anxieties while Malaysia's balanced approach aligns with China's peaceful dispute narrative.
  • Challenging U.S. Economic Coalition-building: China's deepening economic interdependence with Southeast Asia may undermine U.S. efforts to isolate Beijing economically or create a viable counter-coalition in the region.
  • Domestic Optics and International Messaging: The tour strengthens Xi's domestic image of international legitimacy amid economic headwinds and signals to the Global South that China remains a reliable development partner, countering the West’s isolation narrative.
Practice Question
Q.In the context of intensifying U.S.-China strategic rivalry, critically examine China’s economic and diplomatic outreach to Southeast Asia. How does this recalibration of Chinese foreign policy affect India’s regional interests and the future of Indo-Pacific multilateralism?
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