Xi Jinping warns “there are no winners in a tariff war” as he begins Southeast Asia tour

HANOI, Vietnam. Chinese President Xi Jinping began his diplomatic tour of Southeast Asia on Monday by warning against the dangers of protectionism and presenting China as a stabilizing force in global trade, in contrast to the United States’ recent tariff decisions under former President Donald Trump.

“There are no winners in a trade war, or a tariff war,” Xi said in an editorial jointly published in Vietnamese and Chinese state media. “Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”

Xi’s remarks come as the U.S. maintains steep tariffs on Chinese imports, including a 145% duty rate, despite a recent pause on some tariffs. Trump, speaking from the Oval Office, accused China and Vietnam of plotting to undermine the U.S., saying the two countries were trying “to figure out how do we screw the United States of America.”

Strengthening China’s Ties in the Region

Upon arrival in Hanoi, Xi was received with high honors by Vietnamese President Luong Cuong. The ceremonial welcome included a drum performance by local students and flag-waving for both nations and their Communist parties, a display reflecting the significance of Xi’s two-day visit.

In a meeting with Vietnam’s Communist Party General Secretary To Lam, Xi emphasized the importance of regional cooperation: “In the face of turmoil and disruption in the current global context, China and Vietnam’s commitment to peaceful development, and deepening of friendship and cooperation has brought the world valuable stability and certainty.”

Xi also met with Vietnamese Prime Minister Pham Minh Chinh, and the two sides signed several memorandums aimed at boosting cooperation on railway infrastructure, environmental protection, and supply chain resilience. According to Vietnamese state media Nhan Dan, both countries agreed to expedite an $8 billion cross-border railway project approved earlier this year.

Regional Strategy Amid U.S. Tariffs

Analysts say the timing of Xi’s visit is no coincidence. Huong Le-Thu of the International Crisis Group noted that the trip sends a “strong political message that Southeast Asia is important to China,” especially as the region braces for the potential consequences of U.S. trade measures.

“Given the severity of Trump’s tariffs and despite the 90-day pause, Southeast Asian nations are anxious that the tariffs, if implemented, could complicate their development,” Le-Thu said.

Vietnam, in particular, finds itself in a delicate position. While operating under a Communist one-party system similar to China, the country has also forged strong ties with Washington. In 2023, Vietnam hosted both U.S. President Joe Biden and Xi Jinping and upgraded its diplomatic relations with the U.S. to the same level as with China and Russia.

Economically, Vietnam has benefited from the shift in global supply chains away from China. Chinese state media reported a 14.6% year-on-year increase in China- Vietnam trade in 2024, reinforcing their complex interdependence.

Still, concerns persist in Washington that Vietnam is being used as a backdoor for Chinese goods, leading to a 46% tariff imposition before the latest temporary reprieve.

“This puts Vietnam in a very precarious situation,” said Nguyen Khac Giang, a fellow at the ISEAS–Yusof Ishak Institute in Singapore. “This trip to Vietnam, Malaysia, and Cambodia is all about how China can really insulate itself against the tariffs from Trump.”

Xi has visited Vietnam more frequently in recent years, a signal of China’s strategic recalibration. After Hanoi, he is scheduled to travel to Malaysia and Cambodia to further solidify China’s regional influence.

South China Sea and Lingering Tensions

Despite growing economic cooperation, long-standing territorial disputes between China and Vietnam in the South China Sea remain unresolved. While confrontations between the two countries’ coast guards continue, Vietnam rarely publicizes these incidents to maintain diplomatic balance.

As Xi moves forward with his Southeast Asia tour, his message remains clear: China wants to deepen partnerships and portray itself as a counterweight to Western protectionism and unilateralism.

With reports from the Associated Press