Xi’s Diplomatic Charm Offensive in Southeast Asia

1
68
Xi Jinping smiling and waving while shaking hands during a diplomatic visit in Southeast Asia, with ASEAN flags and iconic landmarks in the background.
Chinese President Xi Jinping extends a diplomatic gesture during his visit to Southeast Asia, reinforcing China’s influence and bilateral ties across the region.

Chinese President Xi Jinping undertook a five-day visit from April 14 to 18 to Vietnam, Malaysia, and Cambodia. The visit came against the backdrop of sweeping US tariffs that are reshaping global trade patterns. The purpose of Xi’s first overseas trip of the year was a carefully choreographed diplomatic push to position China as a reliable economic partner and a stabilizing force in the Asia-Pacific region.

More than symbolic, the trip aimed to deepen bilateral ties and advance Beijing’s growing ambition to shape a “community with a shared future” across Asia. The choice of Vietnam, Malaysia, and Cambodia was no coincidence; each offers China a distinct combination of economic opportunity, geopolitical leverage, and diplomatic alignment.

Vietnam, the first stop on Xi’s tour, reflects both the opportunities and challenges in China’s neighborhood diplomacy. This was Xi’s fourth state visit to the country and coincided with the 75th anniversary of diplomatic ties between the two nations. Moreover, Vietnam occupies a unique position in Southeast Asia.

It is a one-party Communist state that shares both land and maritime borders with China, creating a mix of ideological alignment and geographic closeness. However, this proximity is offset by a strained security relationship. The two countries have long-standing tensions over competing territorial claims in the South China Sea (SCS), a major source of friction despite growing trade. Even so, China remains one of Vietnam’s largest trading partners.

In 2024, Chinese direct investment in Vietnam exceeded $2.5 billion, signaling confidence in the country’s industrial growth. Bilateral trade rose to $260.65 billion, a 13.5 percent increase from the previous year. Of that, Vietnam imported $144 billion worth of goods from China. Vietnam’s economy relies on importing raw materials from China and exporting finished products to the US. Recently, the US imposed tariffs of up to 46% on Vietnamese goods, dealing a major blow to its export sector. Xi’s visit carried particular weight in this context. With Vietnam under economic pressure, China aimed to strengthen ties and increase its regional influence.

During the visit, Xi proposed six areas of cooperation: building mutual trust, enhancing security coordination, expanding economic collaboration, boosting people-to-people exchanges, deepening multilateral engagement, and improving maritime cooperation. The two sides signed 45 agreements, although details were not disclosed by either government.

Xi’s visit to Malaysia, his first since 2013, was the second stop on his Southeast Asia tour. It coincided with the 50th anniversary of diplomatic relations between the two countries. The trip followed a 2023 meeting in Beijing, where Xi and Malaysian Prime Minister Anwar Ibrahim agreed to deepen cooperation under the “community with a shared future” framework. China has been Malaysia’s largest trading partner for 16 consecutive years. In 2024, bilateral trade reached $212.04 billion. With Malaysia set to chair ASEAN in 2025 and participate in BRICS discussions, expectations for expanded collaboration are rising.

At the same time, Malaysia is navigating trade tensions. US tariffs of 24% have increased pressure on its export sectors. Meanwhile, China faces even higher tariffs, prompting firms to seek alternate supply routes. Malaysia, a key player in global semiconductor and electronics supply chains, stands to benefit. In 2024, China imported $18 billion worth of chips from Malaysia, while the US imported $16.2 billion – nearly %20 of its total chip imports. This positions Malaysia as a strategic hub in the shifting global supply chains, balancing strong ties with both Beijing and Washington.

Xi’s final stop was Cambodia, a country with long-standing political and economic ties to Beijing. The relationship is shaped by economic dependence, political alignment, and shared skepticism of Western democratic models. Cambodia has consistently backed China’s positions in regional forums. Economic cooperation is central to their ties. China has been Cambodia’s largest trading partner for 13 years, with trade reaching $17.83 billion in 2024. Most of this trade consists of Chinese exports, underscoring Cambodia’s reliance on Chinese goods. Beijing has also financed major infrastructure, including the $1.2 billion Funan Techno Canal, which will connect Phnom Penh to the Gulf of Thailand.

Xi’s visit came as Cambodia faced rising economic pressure. The US imposed 49% tariffs, targeting its textile exports and widening trade imbalances. In 2024, US-Cambodia trade totaled $13 billion, with $12.7 billion from Cambodian exports. To ease tensions, Phnom Penh offered to reduce tariffs on some US goods. At the same time, high US tariffs on Chinese products have made Cambodia more attractive as a manufacturing base for American markets. Xi’s visit aimed to reinforce China’s support and anchor Cambodia in its regional strategy.

The two countries signed over 30 agreements in areas including trade, infrastructure, agriculture, and law enforcement. China pledged to import more Cambodian agricultural goods and cooperate on cross-border crime. Xi also committed to tackling online gambling and telecom fraud. For Cambodia, the visit highlighted China’s role as a stable economic partner. For Beijing, it was a calculated reaffirmation of influence in a country that remains firmly within its diplomatic orbit.

Xi Jinping’s Southeast Asia tour sent a clear signal that China intends to position itself as a stabilizing force in a time of rising global uncertainty. In Vietnam, Malaysia, and Cambodia, Xi delivered a consistent message that China stands against unilateralism, protectionism, and power politics. In Vietnam, he warned against ‘unilateral bullying’, in Malaysia, he called for resistance to protectionism, and in Cambodia, he stressed that trade wars threaten global multilateralism. These remarks were not symbolic alone. They reflected China’s broader effort to counter growing US influence and resist economic decoupling. As the US under the Trump Administration raises tariffs on Chinese goods, some as high as 145%, China is responding by reinforcing ties in its immediate region.

One critical advantage for Beijing is that the US lags behind China in regional economic integration: it is not part of either the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Regional Comprehensive Economic Partnership (RCEP) – the latter being the world’s largest free trade deal signed by 15 Asia-Pacific economies including major US allies. Meanwhile, US-led initiatives like the Indo-Pacific Economic Framework (IPEF) have struggled to gain traction due to their lack of tariff benefits and ambiguous commitments.

In the backdrop of that, Xi’s tour had three key outcomes. First, it enhanced China’s image as a dependable economic partner and a supporter of open trade. Beijing used the visit to present itself as a steady alternative to US volatility. Second, it deepened regional integration. By promoting economic cooperation with Vietnam, Malaysia, and Cambodia, China is working to offset the impact of US trade restrictions through stronger ties with neighbors.

Third, it advanced China’s strategic vision of regional autonomy. Xi emphasized a future for Asia free from foreign interference and bloc confrontation – framing China as a leader in shaping that future. As ASEAN’s largest trading partner and the top partner of Vietnam, Malaysia, and Cambodia – China is leveraging economic interdependence to consolidate influence. By reinforcing trust and projecting leadership, Beijing is not only responding to external pressure but actively working to shape the regional order on its own terms.

 

Author