May 2nd 2025 Editorial

Context: President Xi Jinping’s Visit to Southeast Asia (April 14–18, 2025)

  • Countries visited: Vietnam, Malaysia, Cambodia.

  • Objective: To present China as the “reliable partner of choice” in Southeast Asia.

  • Background: Comes amid a 145% U.S. tariff on Chinese exports, initiated under the Trump administration.

  • Broader goal: Recalibrating China’s external economic engagement, especially in regions where it has geostrategic proximity and economic receptivity.

2. Not Just Routine Diplomacy

  • The visit was part of a deliberate strategy to:

    • Reduce dependence on Western markets.

    • Boost stability and leadership in the Indo-Pacific.

    • Address economic pressure and enhance regional cooperation.

  • Coincided with the “Central Conference on Work Relating to Neighbouring Countries”, highlighting the importance of regional diplomacy.

 

3. Southeast Asia as a Buffer and Bridge

  • Why Southeast Asia?

    • Acts as a buffer to shield China from Western economic pressure.

    • Serves as a bridge to diversify trade and economic ties.

  • Examples of tariff impact:

    • Cambodia may face a 59% tariff (10% universal + additional 49%).

    • Vietnam: 46% tariff.

    • Malaysia: 24% tariff.

  • China’s response:

    • Pitched multilateralism and opposition to unilateralism.

    • Promoted economic resilience and technology independence.

 

4. Strengthening Bilateral Economic Ties

  • Vietnam: Signed 45 cooperation agreements.

  • Cambodia: Over 30 agreements covering:

    • Digital economy

    • Artificial intelligence

    • Smart agriculture

    • Infrastructure

    • Cambodia’s trade volume with China expected to exceed $15 billion in 2024.

    • Funan Techo Canal project = showcase of China’s public goods model.

 

5. To Project a Contrast to the U.S.

  • China portrays itself as:

    • A non-coercive, rule-setting leader.

    • Opposed to the S. model of conditional aid, intervention, and military alliances.

  • In contrast to U.S.-backed groupings like:

    • AUKUS, QUAD, Bilateral alliances.

    • Indo-Pacific Economic Framework for Prosperity (IPEF), criticized for lacking trade incentives.

 

6. Emphasis on Regional Norm-Setting

  • China’s soft power strategy focuses on:

    • Norms of non-interference.

    • Cultural linkages (e.g., BRI, Confucius Institutes).

    • Alternative to the U.S.’s liberal international order.

  • China appeals to Southeast Asian countries that have been cautious of Western influence but also wary of becoming too dependent on China.

 

7. The Larger Strategic Picture

  • Strategic Positioning:

    • Presents China as an indispensable economic partner.

    • Counterbalances U.S. decoupling and containment strategies.

    • Ensures Southeast Asia is less susceptible to Western influence.

  • Challenges for the U.S.:

    • Harder to isolate China economically.

    • Difficulty in operationalizing a coherent Indo-Pacific strategy.

 

8. Signalling to Global and Domestic Audiences

  • Domestic signalling: Shows the Chinese public that:

    • China is not isolated.

    • It has alternatives amidst economic pressures and geopolitical tension.

  • Global signalling:

    • China continues to engage diplomatically and economically.

    • Reiterates its commitment to multilateralism and peaceful engagement.

  • Use of:

    • Warm receptions, economic deals, and joint statements.

    • Diplomatic overtures to shape narratives.

 

9. Takeaway

  • Xi’s tour is strategically timed to:

    • Reinforce China’s leadership in the Indo-Pacific.

    • Push back against the U.S.-led narrative of economic isolation.

    • Entrench China’s influence through economic statecraft and normative diplomacy.

Outcome uncertain: Depends on how receptive regional states are to China’s overtures amid underlying concerns.

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