Chinese President Xi Jinping declared on Monday 14 April, 2025 that “no winner will emerge in a trade war,” kicking off a Southeast Asian tour in Vietnam amid escalating trade tensions with the United States.
The three-nation visit, including Malaysia and Cambodia, aims to bolster regional ties as U.S. President Donald Trump’s 145% tariffs on Chinese imports threaten global markets.
Xi’s remarks, published in Vietnam’s Nhan Dan newspaper, underscore Beijing’s push for multilateral cooperation against protectionism.
Speaking in Hanoi, Xi urged nations to “safeguard the multilateral trading system” and maintain stable supply chains, framing China as a reliable partner.
Vietnam, Southeast Asia’s largest buyer of Chinese goods at $161.9 billion in 2024, balances ties with both superpowers. Prime Minister Pham Minh Chinh welcomed Xi, emphasising shared economic goals despite South China Sea disputes.
Local exporters, however, voiced concerns about potential U.S. tariffs, with analyst Nguyen Khac Giang noting Vietnam’s “precarious” position as a transshipping hub.
In Malaysia, set to host Xi next, Trade Minister Tengku Zafrul anticipates deeper trade agreements. Malaysia imported $101.5 billion in Chinese goods last year but faces a 24% U.S. tariff, paused for 90 days. Manufacturers like electronics firm VTech worry about cost increases if tariffs resume.
Cambodian Prime Minister Hun Manet, hosting Xi later, hailed China’s infrastructure investments, though garment exporters fear a 49% U.S. tariff could cripple their industry, which employs 750,000 workers.
U.S. stakeholders reacted cautiously. The National Retail Federation warned that renewed tariffs could raise consumer prices by 20%, citing electronics as a flashpoint.
Trump, speaking Sunday, called tariffs a tool to “bring back American jobs,” but tech giants like Apple urged exemptions, citing supply chain disruptions.
Wall Street dipped 1.5% on Monday, reflecting fears of a prolonged trade war.
The EU and Japan, observing Xi’s tour, called for dialogue. EU Trade Commissioner Maros Sefcovic noted that Chinese exports could flood European markets if U.S. tariffs persist.
Meanwhile, Chinese state media amplified Xi’s narrative, portraying the U.S. as isolationist. Social media echoed this, with people debating whether China’s charm offensive would sway Southeast Asia or deepen global divides.
As Xi navigates regional diplomacy, the trade war’s ripple effects — higher costs, market volatility, and strained alliances —loom large, with no resolution in sight.
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