Description: Chinese President Xi Jinping has launched a tour of visits to countries in Southeastern Asia to discuss establishing or reaffirming existing strategic partnerships. He began his tour in Vietnam where he met his counterpart To Lam to discuss strengthening strategic ties between the two countries in economic times of crisis and uncertainty caused by Trump’s tariffs. According to sources close to both countries, up to 40 agreements of cooperation were signed between the presidents in vital industrial sectors, supply chain industry and bilateral trade of goods. Chinese customs data indicated that countries from Southeastern Asia have surpassed the EU and the US as China’s largest export markets and the raise would gradually be catalyzed by the effect of Trump’s tariffs. President Xi was expected to continue his visits to Malaysia and Cambodia, countries which he hasn’t visited in 9 and 12 years respectively, which indicated the high urgency of reaffirming ties between China and its Asian partners.
Impact: Ever since Trump’s tariffs were discovered to be a highly risky negotiating strategy that’s trained towards China, both EU and China have started to encourage a more diversified foreign policy approach. China is looking at fully exploiting Trump’s tariff pause to gather as much as possible countries which have been similarly affected by the tariffs and bolster strategic ties in order to counter the effects of the tariffs on its domestic economy which has global outreach. China’s diplomatic capital accumulation could result in strengthening the economies of manufacturing countries such as Vietnam and establishing long lasting strategic ties which could endanger the US position on the global market. Trump has already criticized Xi’s attempt to consolidate strategic partners which may prompt the American President to shorten the tariff delay as much as the market prognosis allowed and put in effect the 145% levies on Chinese products sooner.